Restructuring of Existing Debt
Most small and medium enterprises (SMEs) need funding to enable them to operate and grow. While some business directors are able to self-fund the running of the company, most businesses will need to seek funding from external sources at some stage.
This kind of finance can take many forms including equity investment, bank overdrafts, cash from friends and family and loans from credit providers. Many companies will end up with multiple loans from various sources, which will have been taken at different times for different business needs.
While loans can help businesses with their cash flow and working capital requirements, they can also result in the company making multiple repayments each month at varying interest rates. This can be very expensive, damaging the business’s ability to grow. If you can identify with this situation, one way to lighten the load of these loans could be to restructure your company’s debt to make repayments more affordable and simple to keep track of.
Sometimes you can find that funding certain things over shorter periods than their useful working life to you was a good idea at the time....but things can change. You don't need to be stuck with decisions made in the past - adapt to your present and future.
Debt restructuring can have many benefits for your business, giving you the time to do what is most important – growing your company.
Consolidate existing debts - If your business is currently paying back multiple loans every month, you probably spend a lot of time juggling the various repayments, which is a drain on your time. Restructuring your company’s debt could help reduce the number of monthly repayments you have to keep track of by consolidating these into one payment, making your life simpler and allowing you to get back to running your business.
Lower interest rates. The loan repayments you’re currently making may have interest rates that are placing a financial strain on your business. Consolidating your company’s existing debts could mean that you pay a lower interest rate overall, reducing the cost of finance to your business from outstanding loans.
Free up cash in your business. The outstanding debts you’re repaying each month may be taking up a significant proportion of the cash in your business, causing a strain on your working capital availability.
Restructuring these debts can mean you’re making lower repayments each month, freeing up cash for running your business and enabling you to grow.
If you decide that restructuring your outstanding debts could benefit your business, lets talk.