Company refinancing is necessary when a different debt structure is needed to replace the existing financing.

Restructuring  can often simplify the cost of debt or increase the debt size. Restructuring debt can be with the existing lender or new lenders can take out existing lenders. 

Our knowledge of lender financing criteria will quickly determine the cost/benefit feasibility of Restructuring success.  Banks, non-bank, and private debt lenders have unique approaches to evaluating refinancing. Our experience will align the company’s business plans, financing requirements and borrowing capacity with specific lenders and save management the time and stress of aligning with the best suited lenders.

Our assessment, proposal development and negotiations will address business assets, the business case, cash flow, enterprise value, asset security and the stage of the business (growth, mature, early-stage).  

Restructure Existing Financing - Common challenges: 

• Lender declines requested amount
• Existing loan facilities cut back
• Tightening of security, terms, or conditions
• Planned refinancing will take too long
• A turnaround or the business has experienced a difficult period
• Significant new business revenue anticipated
• Buying for new orders, or new equipment
• Restrictive advance rates, collateral security margin
• Cannot meet pre-funding conditions
• Financing required immediately, or very soon
• Cannot pay suppliers on time
• The existing lender has demanded its loan repayment
• Negotiating with the lender

Solution

Restructuring existing financing can be complex and a variety of approaches need to be considered, quantified, and evaluated to determine an optimal debt structure for immediate to longer-term requirements. The process can involve interface with outside parties and professionals. 

An in-depth presentation is required that focuses on the key issues, management, and how business operations, cash flow and its assets can support the required debt service and repayment, and within the bounds of present agreements and obligations. Negotiations are an integral part of restructuring debt. Successful negotiation requires the business analysis in conjunction with structuring a workable solution in a short time frame.

We identify the likeliest financing feasibility scenario, expected pricing, and most suitable lender(s). Building a lending case, we draw on our previous experience with debt and bridge financing structures and drill down into the details to ensure alignment with each prospective lender and solution.

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