Management control is of fundamental importance in business management, especially in times of crisis; just as accurate planning is useful for guiding the company towards improving its competitive positioning.

In this context, the Business Crisis and Insolvency Code (which came into effect in July 2022) has been updated with Legislative Decree September 13, 2024, No. 136 (effective from September 28, 2024), emphasizing the key role of the entrepreneur in establishing an organizational, administrative, and accounting structure capable of anticipating a state of crisis or insolvency.

The Debt Service Coverage Ratio (DSCR) represents a fundamental tool for entrepreneurs in the strategic management of their activities. This financial indicator is crucial for assessing a company's or an individual's ability to generate sufficient cash flows to cover their debt obligations, including interest payments and principal repayments. Successfully used, the DSCR allows for financial decision optimization, favoring more accurate risk management and stronger long-term planning.

Companies in a crisis situation have the opportunity to access targeted procedures to facilitate their recovery. This procedure, described in Article 17 of Legislative Decree No. 14 of January 12, 2019, requires the submission of several documents, including a recovery plan project, a financial plan for the next six months, and the initiatives the company intends to undertake.

The DSCR not only represents a fundamental tool for monitoring the sustainability of corporate debt but is also widely used by financial institutions to assess the applicant's ability to meet their financial obligations. Additionally, the DSCR is a crucial parameter for ensuring compliance with contractual covenants, whose violation could lead to demands for early repayment of debt.

In this context, the Dynamic Business Planner ( DBP ) application, developed by Technesthai, supports entrepreneurs in the fast and effective creation of a forecast plan based on their financial statements, allowing them to measure their financial interventions to present them to financiers in terms of DSCR.

In a world characterized by constant entrepreneurial challenges, DBP helps companies build their success towards a solid and sustainable economy! Visit our website www.tech-dbp.com and request a free demo to appreciate the potential of our software.