The Benefits of Debt Restructuring | Barry Kornfeld

12/10/2020

The BeneďŹ ts of Debt Restructuring | Barry Kornfeld | Debt Restructuring

a The Bene ts of Debt Restructuring

by Barry Kornfeld | Dec 10, 2020 | Barry Kornfeld, Debt Restructuring

When you nd 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 a oat 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. Here are the great bene ts of a business restructuring their debt: https://barrykornfeld.net/the-beneďŹ ts-of-debt-restructuring/

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12/10/2020

The Benefits of Debt Restructuring | Barry Kornfeld | Debt Restructuring

A Balanced and Managed Cash Flow When a business is in debt, there is obvious stagnation in cash ow. With the help of debt restructuring, a business will be able to access liquidity. This can be used to stabilize the business. When re nancing the high-cost loan product is not a viable option, you can have better cash ow 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 ow.

Avoid Business Bankruptcy Bankruptcy is the nal nail in the co n when it comes to paying o 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 nd a better solution that will still keep your business’s doors open. Instead of throwing in the towel and ling 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.

Reduced Debt and A ordable Payments Another great bene t 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 a ordable. 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 ow immeasurably.

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12/10/2020

The Benefits of Debt Restructuring | Barry Kornfeld | Debt Restructuring

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