Can Corporate Debt Restructuring Help My Company?

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Let’s make one thing clear- corporate debt restructuring is NOT a magic-bullet cure for your organization’s financial problems. If your organization continues to take on more debt they can handle, if your company is unable to use their restructuring as a means of reaching profitability, and if your company approaches restructuring as a “get out of jail free card” then you will eventually run into the same problems you’re experiencing right now. That being said, for the majority of organizations corporate debt restructuring can be an intelligent step to take, one which will relieve the pressure of their debt load and provide them with the means of reaching sustainable profitability.

There are many ways in which debt restructuring can help your company, but an intelligent restructuring plan will have the greatest positive impact when it comes to improving your organization’s cash flow. There are many, many, many organizations in the world that are technically profitable but who aren’t able to achieve a high enough level of profitable cash flow to expand their operations. These organizations have excellent business models and are generally run in an intelligent manner, but most of their profits go right into debt repayment.

For these organizations, a debt restructuring plan will provide them with lower monthly loan payments, which will in turn provide them with the greater positive cash flow they need to grow and evolve as an organization. Without debt restructuring these organizations would stagnate, they would unnaturally remain in on position, and they would never achieve their corporate potential. With debt restructuring they can achieve a market position that allows them to comfortably pay off their debts in full.

Myth: 3rd Party Negotiators Will Ruin the Relationship between Customer and Vendor

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Many businesses go through phases of financial strain during their existence. The economy and other outside factors will cause fluctuations in cash flow and profits.  These negative cash flow cycles will provide a need for financial restructuring and negotiation by a third party. There is no need to consider bankruptcy and face the associated financial implications.  You have options that will help restore your profitability.

 

Once of the common myths is that third party negotiators will ruin the relationship between companies and vendors. This is usually due to a company not choosing the right negotiating party.  Third party negotiators like American Corporate Turnaround want both the company, as well as the vendor to experience a win-win situation.  In the current economic environment, many businesses are facing mounting payables with the slowdown of sales.  With the banking community reluctant to lend and credit card lines being reduced, companies are looking for a lifeline with their current vendors.   A third party negotiator will employ a methodology that will create a harmonious relationship between the company and vendor.

Benefits of debt negotiation:

*  Avoid Bankruptcy

*  Soothe relations with current vendors

*  Save time by allowing 3^rd party to handle all negotiations

*  Avoid legal fees

*  Create cash flow

*  Keep necessary supply shipments flowing

*  Salvage company’s credibility

 

At American Corporate Turnaround, our goal is to always preserve the relationship between our clients and vendors. American Corporate Turnaround explores all options that are open.  As we explore our client’s current balance sheet, we will be able to lay out all the alternatives so the correct choice can be made.

American Corporate Turnaround is a 3^rd party mediator between the company and the vendor.  We are experienced financial analysts and we are always striving to get the best result for our clients. As our slogan says “We Make Un-Payables-Payable”.