How Does Corporate Debt Restructuring Affect Your Business?
Debt restructuring eases the burden of monthly payments so that you can fulfill your financial obligations without losing your business. If you’re dealing with aging payables and can’t seem to settle on acceptable terms, you could benefit from a debt restructuring plan.
When you’re paying so much every month that there’s no money left over to re-invest in your business, you face the threat of filing for bankruptcy. Debt restructuring pares down your payments by negotiating new terms with creditors based on the amount you can reasonably afford every month. You wind up with a predictable payment schedule that’s easier to handle and isn’t subject to fluctuations that may drive up interest rates. Fixed payments can be worked into your quarterly budget without difficulty to keep you on track.
Free Up Cash
Debt is a major threat to cash flow, and cash flow issues are one of the main reasons that businesses go under. If you’ve been struggling with debt for a while, you know the weight of the worry that builds every month when bills come that you don’t have the money to pay. By restructuring your debt, you can make these payments and still have money left over to keep your doors open. The money you save can be put toward more inventory, better marketing and other investments that bring in customers and spur business growth. Growth means more profit, better cash flow and faster recovery from debt.
Get More Time to Pay
One of the reasons to renegotiate payment terms is to get a longer period of time in which to pay off your debt. Staring impossible deadlines in the face creates undue stress that makes it difficult to concentrate on running your business. Once a debt restructuring plan is in place, you’ll know exactly how much you have to pay per month to be out of debt by a predetermined date. This date offers a light at the end of your financial tunnel by giving you a goal to work toward instead of a day to dread.
To set up a debt restructuring schedule that benefits your business, get in touch with Protection Legal Group. Our experience with debt restructuring allows us to provide the help and insight you need to negotiate a payment plan that works for you. Call today for a free consultation.