Few words can make you feel overwhelmed just by hearing them, but “debt management” probably tops the list for a lot of people who work in finance, not least at real estate companies. And we get it. Debt Management is often incredibly complex thanks to all the different aspects that need to be taken into account. And that it’s fundamental for the company’s survival doesn’t make it any less overwhelming – but hopefully, we can help you improve your debt management while also making it a bit easier!
To help you out, we’ve put together a list of five things to keep in mind next time you’re doing any debt management work!
On the other hand, during a recession, we have the opposite effect. When investors risk losing money, it becomes a lot harder for real estate companies to borrow any money at all – and in those cases where they do get to borrow money, it often comes with high credit margins and disadvantageous terms. In these scenarios, the central banks can stimulate the economy by lowering the reference rate or buying bonds with longer terms to maturity. That way, they can reduce the interest rate on longer terms to maturity in general.
Three questions that will help you ensure that you have as much control of your debt and risks as possible when signing an agreement with the bank are:
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