Business Debt Restructuring | Options and More

Debt to income is a huge factor in determining a business’s financial health. Daily payments become burdensome to businesses experiencing a downturn in revenue. Payments continue to be drafted even when the cash-flow drops. Business debt restructuring is very real need for businesses in this situation.

If you have $50,000 or more in MCA or other unsecured business debt and are struggling to make your payments, call us. We have the knowhow and the tools to get your debt restructured, making it affordable. You can then make fast headway on paying down your debt as your business becomes cash-flow positive.

What Are the Benefits of Business Debt Restructuring?

• Allows you to avoid bankruptcy.
• Extends the term for lower, more manageable payments.
• Ends calls from creditors and collectors.
• Makes your business cash-flow positive.
• You can focus on your business without the day-to-day stress of overwhelming debt.
• No legal fees.
• Doesn’t disrupt your vendor accounts.
• You won’t take a negative hit to your credit.

We work directly with your lenders to negotiate a payment plan that is affordable to you. At this point you can focus more intently on operating your business without stress. 

Business debt restructuring also avoids the tremendous amount of negatives that come from bankruptcy. This alone is a big plus.

Once a new term is agreed upon, you need to stay current on your payments and avoid taking on any further debt. By not defaulting on the new payment schedule and by avoiding new debt, you will quickly turn your negative financial situation into a positive cash-flow situation. 

Unsecured Business Loans Can Quickly Become Unmanageable

Unsecured business loans and business credit cards can be helpful, but they oftentimes turn into an unmanageable liability. Becoming up-side-down financially from these type of debts is easy to do. This is especially true for businesses who have stacked up many high-interest sources of funding or who’s business has taken a downturn financially. Oftentimes a business will resort to getting additional financing, but this is equivalent to patching a hole in a ship with bubble gum. It won’t do any good in the end and will make the situation worse in the long term. Any workable solution must not include adding more debt.

We do understand why business owners go this route. It quick, easy and fixes the cash-flow shortage in the immediacy. We also know that this route is a means to an end, though, and unless stopped, will make even a restructuring program less effective.

Is Business Debt Restructuring and Business Debt Relief the Same Thing?

A business debt restructuring program is designed to bring about relief from business debt like its alternative counterparts. Although business debt relief is often looked at as a program term, it’s really what comes about from programs such as business debt restructuring and other such programs.

How is it Different From Business Bankruptcy?

• Bankruptcy is much more costly than restructuring
• Bankruptcy has a long term nagative impact on your credit
• Business bankruptcy can have a negative effect of your vendor relations
• Many of the fees associated with bankruptcy go toward attorney fees, not to you debt balances
• Much more time consuming. You have hearings and attorney consultations involved which can become overwhelming time wise

The above reasons are just some of the reasons why we suggest bankruptcy a last resort. There are many other options that are less costly, less time consuming, less damaging and more effective.