How a Finance Consultant Helps Indian Businesses

Running a small business or startup in India sounds fun, but it’s not always easy. Many business owners have good products and great teams but still face one big problem there’s never enough cash in the bank.

They see profit on paper but have no real money to spend. This happens when money comes in late or goes out too fast. A finance consultant helps fix this problem. Think of them like a doctor for your business money. They find what’s wrong and help you make your business healthy again.

Why Businesses in India Lose Cash

Indian small businesses and startups face some common problems:

• Late Payments: Big clients often take 2 or 3 months to pay their bills.
• Rising Costs: Prices of materials, rent, and salaries keep going up.
• Loan Pressure: Many people take short loans for long projects, which causes high EMIs.
• Changing Rules: GST and tax rules often change, making planning hard.

A report by CPA Australia says that cash problems, rising costs, and tough competition hurt small businesses the most.

How a Finance Consultant Fixes These Problems

A finance consultant doesn’t just look at old numbers. They make a plan for your future. Their job is to make sure your business has enough cash and makes real profit.

1. Managing Cash Flow

They make a weekly or monthly plan to track every rupee coming in and going out.

• Action: Create a simple cash plan showing income and expenses.
• Result: You always know when you’ll have cash problems and can fix them early.

2. Increasing Profit

They check where your money is being wasted and help you cut extra costs.

• Cost Control: Spend only where needed and get better deals from suppliers.
• Smart Pricing: Set prices that cover your costs and still give you profit.

3. Handling Loans

They help you manage your loans and talk to banks for better terms.

• Debt Help: Change short-term loans to long-term ones with lower interest.
• Fundraising: Help you make reports to get investors or new funds.

Example: The Chennai Factory

A textile company in Chennai was doing well but had no cash left at the end of each month. They couldn’t pay their suppliers.

A finance consultant checked and found two big problems too much money stuck in old stock and customers paying very late.

Here’s what they did:

• Cut stock by 35% using a “buy only when needed” rule.
• Gave small discounts to customers who paid early.
• Changed short loans into long ones with lower interest.

Result: In six months, cash flow became positive, suppliers were happy again, and the company made more profit.

What the Numbers Say

• Cash ROI: Good cash planning gives 3 to 12 times more return in a year.
• Finance Gap: Indian SMEs face a credit gap of US$5.7 trillion.
• Consulting Growth: The Indian consulting market will grow 12.9% each year till 2030.
• More Help: 34% of small businesses now use finance consultants.

Expert Tip

Many Indian business owners focus only on sales. But smart owners focus on cash.
Profit looks good on paper, but cash keeps the business alive.

Remember: Turnover is vanity, profit is sanity, but cash is reality.

FAQs

1. How is a finance consultant different from an accountant?

An accountant records old data. A consultant helps plan your future and fix cash issues.

2. Is hiring one expensive?

No. Many offer low-cost or online plans that give better results than their fee.

3. How fast can cash flow improve?

Most see changes within 1 to 3 months with better payment control.

4. What are common money mistakes?

Only checking the bank balance, ignoring late payments, and not planning ahead.

5. Can a consultant help with bank loans or investors?

Yes. They prepare all the financial reports needed to get funds or loans.

6. What is Turnaround Consulting?

It helps save a business that’s losing money or facing debt.

7. Do they help with tax savings?

Yes, indirectly. Better planning and cost control reduce extra taxes.

The Future: Hybrid Consulting

Now, many businesses in India want one expert team that can handle finance, legal, and technology together. This is called Hybrid Consulting.

It’s faster, easier, and cheaper than hiring many different experts. It also helps your business grow in a smart way.

About LawCrust

LawCrust Global Consulting Ltd. delivers cutting-edge Hybrid Consulting Solutions in Management, Finance, Technology, and Legal to ambitious businesses worldwide. Recognised for our cross-functional expertise and hybrid consulting approach, we empower startups, SMEs, and enterprises to scale efficiently, innovate boldly, and navigate complexity with confidence. Our services span key areas such as Investment Banking, Fundraising, Mergers & Acquisitions, Private Placement, and Debt Restructuring & Transformation, positioning us as a strategic partner for growth and resilience. With an integrated consulting model, fixed-cost engagements, and a virtual delivery framework, we make business transformation accessible, agile, and impactful.

For expert legal help, please contact us:

• Email: inquiry@lawcrustbusiness.com