Barry Kornfeld on the Benefits of Debt Restructuring

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THE BENEFITS OF DEBT RESTRUCTURING Presented by Barry Kornfeld

GETTING OUT OF DEBT WHEN YOUR BUSINESS IS IN DEBT When you find the business you created from the ground up is at risk of closing its doors for good because of debt, it can be easy to feel utterly defeated. However, struggling with debt does not have to be the end of your business. Debt restructuring is a great way to keep your business afloat and is an option that has saved many businesses over the years.

Debt restructuring allows a business with excessive debt who may or may not already be in default, to avoid the risk of bankruptcy.

A BALANCED AND MANAGED CASH FLOW ACCESS LIQUIDITY When a business is in debt, there is obvious stagnation in cash flow. With the help of debt restructuring, a business will be able to access liquidity. This can be used to stabilize the business.

When refinancing the high-cost loan product is not a viable option, you can have better cash flow and will have access to more cash to cover challenges in your business, by using a debt restructuring strategy instead. No new loans. In fact, debt restructuring will give your business a more balanced and better-managed cash flow.

Barry Kornfeld | BarryKornfeld.net

AVOID BUSINESS BANKRUPTCY THE WORST POSSIBLE SCENARIO Bankruptcy is the final nail in the coffin when it comes to paying off business debts. Not only is bankruptcy incredibly expensive, but it can label you with the worst possible credit rating. By restructuring your debt instead, you are able to avoid bankruptcy and find a better solution that will still keep your business’s doors open. Instead of throwing in the towel and filing for bankruptcy which put an end to the business you worked so hard to keep, debt restructuring can keep your business alive, and breathe a much needed second wind into your business.

Barry Kornfeld | BarryKornfeld.net

REDUCED DEBT AND AFFORDABLE PAYMENTS MORE MANAGEABLE AND AFFORDABLE Another great benefit of debt restructuring, and why so many businesses opt for it, is how the process can reduce debt as well as make repayments more manageable and affordable.

Creditors want to avoid bankruptcy just as much as business owners, which makes them more willing to alter debt terms. During the debt restructuring process, interest rates on loans are typically reduced and terms are renegotiated. Debt payments are typically lowered by 40% to 60% during this process, which of course can improve your business’s cash flow immeasurably.

Barry Kornfeld |BarryKornfeld.net