How debt restructuring can help your company

If there’s one thing businesses have in common, it’s that they need money. Financing is essential to operating a business and funding potential growth opportunities. However, sometimes opportunities arise that upset the budget, or unexpected market conditions create price changes that your business is left to cope with. 

Not having enough cash is one of the most challenging things that a company can go through, but luckily, there are some financial restructuring alternatives that Equify Financial can offer to help out. 

1. Extending the repayment terms on your loan

When money is stretched thin, you don’t want to be left deciding what bills you’re able to pay. One debt restructuring option is to extend the terms on your loan and allow your company to pay less monthly, for a longer period of time. By reducing your monthly payments you can free up some of your cash flow and keep operations up and running smoothly. 

2. Reducing the interest rate on the loan

Another one of the financial restructuring alternatives that Equify Financial offers is reducing the interest rate on your loan. By doing this, your payments are going straight to the principal loan balance, with less being spent on interest. Refinancing a long-term loan with a lower rate can substantially reduce the lifetime borrowing costs that are associated with that loan, benefitting your company in the long run. 

3. Reducing the remaining balance or bringing a past-due account to current

You may be familiar with the stress of a past-due account if your company has ever fallen behind on payments. The further behind you get the more your minimum payment rises with interest and late fees adding up. Equify Financial offers the opportunity to bring that account balance back up to current and reduce the amount of financial distress you may be experiencing. 

There are many different financial restructuring alternatives that we can offer you to come up with the best solution to fit your specific needs. 

The benefits

If your company is having trouble affording its necessary payments, debt restructuring will allow you to gain liquidity and get your bills paid. The instant relief can be felt as funds are freed up, giving your business some breathing room to fund payroll and other operational and developmental costs. Your business is able to take advantage of the situation and pay loans in a more affordable manner without operations being affected. 

Another benefit is the confidence that you will be able to keep your business afloat. Not only that, but you are protecting the assets your business has. With lower monthly payments, you are in a better position to pay off your loan and decrease the likelihood of your collateral being seized. 

Lastly, with your debt being restructured, you may be able to better manage it all. It can be easier to keep track of your payment schedule and spend less time struggling to budget all your expenses. 

Let’s talk

Here at Equify Financial, we’ve been where you’ve been and walked a mile in your shoes. It’s why we have a variety of financial restructuring alternatives available to businesses nationwide to best suit the needs of individual companies. If you are considering your financial options, give us a call.