Corporate debt restructuring is an unfamiliar process to many of the business leaders who rely on it. Here are some of the basics you should understand:
• What is corporate debt restructuring?
• What kind of timetable is involved with restructuring?
• How do I track the restructuring process?
• What financial burdens are associated with restructuring debt?
• Who benefits from restructuring?
• Is restructuring a viable option for all debts?
• Does restructuring impact my credit?
• What are the advantages of relying on Protection Legal Group during restructuring?
What is corporate debt restructuring?
Debt restructuring reorganizes your corporate obligations to reduce the fiscal burdens they place on your business. Protection Legal Group facilitates this process by obtaining your feedback on the payment amounts you can actually afford and negotiating with your creditors to devise alternate loan terms that everyone involved can agree on.
Debt restructuring often incorporates settlements for owed payments. These arrangements vary greatly depending on each company’s fiscal capacity. Settlements offer indebted companies additional breathing room by appealing to creditors with workable terms.
Restructuring is not the same as getting debts nullified or absolved, but because it can lower repayment amounts, it may improve cash flows and overall profitability. In many cases, it also reduces the risk of going bankrupt.
What kind of timetable is involved with restructuring?
Restructuring plans depend entirely on circumstance. For instance, it may take longer to negotiate comprehensive terms on behalf of a company with a large number of creditors, extensive debts or small revenue streams. Similarly, the actual repayment schedule you work out depends on factors like your revenue, your expenses and the debt balances you owe.
It’s possible to estimate the factors that will determine your arrangement schedule, but bear in mind that the accuracy of such calculations may vary. The length of time you have to make payments is generally proportional to the total debt you want to restructure divided by the amount you can afford monthly. Of course, should your company assume additional debt or become less profitable during the process, the schedule may extend. Conversely, if you pay higher installments, you’ll likely spend less time in the restructuring program.
Most of our successful clients spend an average of [INSERT_TIME_HERE] repaying their obligations. The best way to plan for your restructuring is to get in touch with a Protection Legal Group agent right away.
How do I track the restructuring process?
In addition to providing transparent and open communication, Protection Legal Group offers innovative tools designed to help you maintain a closer watch over your debt. Our secure web platform makes it easy to manage your account and keep track of factors including, but not limited to:
• The total amount of remaining debt you have and how long you’ll spend paying it off at your current rate,
• The history of your restructuring arrangement, including past repayment rates, the amount of time you’ve spent in the program and information about the legal specialists assigned to your case,
• A thorough record of all ongoing negotiations with creditors and the settlements made with individual creditors,
• A list of the documentation you need to provide to speed negotiation and debt resolution,
• Detailed settlement terms and schedules that reveal which creditors need to be paid, how much they’re owed and when payments are due, and
• In-depth, graphable data that brings your restructuring progress, your debt and your budget into clearer perspective.
What financial burdens are associated with restructuring debt?
Effective debt restructuring focuses on helping companies negotiate sustainable repayment terms. The Protection Legal Group program is designed to reflect how much money you can afford to repay on a month-to-month basis. This includes both the amounts spent repaying creditors and the cost of our assistance.
Our organization only profits when our business clients reduce their debt and go on to succeed. For this reason, we work hard to limit administrative costs and provide pricing guarantees for qualified organizations. Discover more by contacting one of our team members for an initial consultation.
Who benefits from restructuring?
Many companies from diverse sectors find that the Protection Legal Group debt restructuring program offers the ideal answer to their credit and financial woes. For instance, most corporations that owe their suppliers money would rather repay these creditors instead of seeking bankruptcy protection so that they can preserve the relationships that are vital to their business. Companies with accounts payable that have been outstanding for some time may simply seek relief so that they can gain additional fiscal leverage.
Assuming debt is a commonly-accepted business practice, especially among startups and other small enterprises. Unfortunately, many entrepreneurs simply lack the experience required to come up with effective debt-management plans. For companies in pursuit of healthy growth, restructuring may offer welcome assistance. It’s especially helpful for entrepreneurs who want to avoid alternatives that might compromise their decision-making power.
Is restructuring a viable option for all debts?
We’re proud to help businesses restructure a range of unique corporate debts. These outstanding obligations may include bills and invoices related to advertising, contractor services, supply-chain providers, credit accounts, equipment leasing and a host of other expenses. With the sole exception of debts associated with personal use, such as a personal credit card that was not used primarily for business purposes, corporate debt restructuring can generally help your firm redefine its financial situation.
If you’re unsure about whether a given debt might be eligible for restructuring, simply ask one of our experts. In addition to providing rapid advice on whether our program could help, we’ll help you get to know about the kinds of options and creditor negotiations we might be able to pursue on your behalf. This is usually the quickest way to gain case-by-case insights into how you might be able to reduce your immediate debt burdens.
Does restructuring impact my credit?
Each situation is unique. With our assistance, however, it’s generally possible to minimize fallout that might otherwise affect your corporate credit status.
Because our repayment to your creditors depends on whether or not they agree to your desired settlement terms, it’s possible that your organization’s credit rating could slip during protracted negotiations. To mitigate this risk, it’s generally best if you contact us as soon as possible to begin planning and reduce the amount of time your debt remains unresolved.
We do our part by being extremely diligent about negotiating and keeping you informed of your obligations. Our staff also maintains open relations with your creditors so that they don’t pursue more draconian alternatives, such as collection or reporting.
What are the advantages of relying on Protection Legal Group during restructuring?
Some businesses elect to conduct and manage their own restructuring. Many of our own clients have done so at some point in the past. A small percentage of firms even complete successful restructuring arrangements from start to finish with no outside help.
Unfortunately, self-directed restructuring plans rarely attain such lofty goals. Our dedicated, comprehensive service provides benefits like:
Viable companies depend on strong, clear leadership. If you’re spending long hours or even mere minutes avoiding collectors or haggling with creditors every day, you have less time to direct your staff, and this reduces overall profitability. Even worse, splitting your focus in such a fashion increases the amount of stress you face on a daily basis and could ultimately jeopardize your ability to make smart business choices.
As an experienced intermediary, Protection Legal Group handles all communication with creditors. This frees business leaders to focus on making the decisions only they can. In the end, restructuring representation helps companies increase revenues in order to lower their total debt sooner.
Professional Representation of Your Interests
Our approach to negotiation is dispassionate yet proactive and consistent. This is highly useful in situations where resolution might involve heated discussion or threats of serious legal action.
Because our staff come from a long history of providing formal representation in high-intensity courtrooms and settlement arbitration, we’re able to keep sight of the big picture as we bargain with your creditors. Such experience allows us to make decisions that benefit you more in the long run and result in plans you can actually sustain. It also frees you of the burden of having to argue your case and work out deals that may seem like hard sells to creditors.
Corporate Restructuring Expertise and Experience
Protection Legal Group staff members are all known as masters of their fields. In addition to being well-versed in the tenets of sound negotiation, they have strong backgrounds in legal domains like:
• Business formation,
• Corporate litigation,
• Contract laws and regulations, and
• Corporate debt restructuring.
While other debt restructuring organizations can only offer financial negotiating power, we back it up with sound knowledge of which practices are acceptable in your jurisdiction. Our deep understanding of contract terms and clauses grants us the ability to analyze your existing agreements with the ultimate goal of buying you time and relief. Even better, our knowledge of how your corporate debt operates could have a significant positive impact on your financial standing and future business strategies.
We Keep You Informed
We provide easy-to-use communication tools and support that lets you reach out with your questions at any time. Our web platform and software offerings also keep you in the know with alerts, reminders and automatic email communications that make it less likely you’ll suffer a critical oversight.
As a business owner, you already have a lot on your plate. Since our sole function is to handle your debt restructuring, we have more time to focus on due dates and other incidental details. We negotiate agreements that catch the details you might have missed.
Negotiating for Relief and Credibility
In the world of restructuring, vetted legal representation provides serious credibility. Our widespread reputation as effective problem solvers does more than just engender trust among our many clients. It also lets your creditors know they can rely on us to find a solution that satisfies their own business needs.
Some of this credibility transfers to you by association. Of course, the fact that you’re willing to sign a settlement negotiated by a reputable third party confers its own benefits as well.
Working with Protection Legal Group demonstrates that even though you may lack the resources to repay your debts immediately, you certainly possess the intent and desire to make amends. This goes a long way towards giving your creditors faith that they can find common grounds with you.
Increased Settlement Options
Our experience helps us devise beneficial repayment strategies and consolidation terms you might not have thought of. It has the same positive effect on your creditors.
Most creditors simply want to close out your balance. Many are open to alternative means of doing so. The deciding factor is often whether the terms you propose seem viable or meet some minimum standard of repayment established by the creditor in question.
Protection Legal Group presents your debt holders with a wider array of options. This may make their decision easier and induce them to coordinate with you instead of viewing you as an entity they need to squeeze money out of at any cost.
Moving Towards a Healthier Financial Status
No business should have to struggle under the burden of overwhelming or constrictive debt obligations. Unfortunately, many firms compromise their ability to operate and expand because they let their debts get ahead of them. Corporate debt restructuring offers a more viable way out for countless companies, and it’s just as acceptable as getting into debt in the first place.
Ready to get your corporate debt restructuring program started? Give your company the freedom to grow and build. Contact a Protection Legal Group adviser today to learn more.