How it got here
There are many reasons businesses get into debt, and you're not alone. Rates change, customers leave, and debt can stack up quickly.
It can easily become a spiral. You borrow more to cover payments, delay paying vendors and put off the taxes. Each move buys a few weeks but leaves you in a worse position.
The worst thing you can do is wait. Don't rely on hope, or wait until you've missed payments or broken a covenant. The earlier you act, the more options you have.
Where your lender stands
Most lenders would rather recover their money through an orderly repayment plan than a costly enforcement process. But that doesn't mean they'll wait indefinitely.
The earlier you understand your position and present a credible plan, the more options you may have. That means realistic numbers, a clear view of the next thirteen weeks of cash, and someone experienced involved.
The options on the table
Negotiating with lenders is often only part of the answer. Depending on the business, the right path may include:
- Amended terms, forbearance or refinancing
- Recapitalization, bringing in new equity or a new investor
- Selling assets that aren't core to the business
- A change of ownership, or a sale of all or part of the business
I'll be honest with you about what's realistic. Sometimes difficult outcomes can't be avoided. When that's the case, the aim is to handle them in a way that protects as much value, and as many people, as possible.
How I help
- Build the picture. A thirteen-week cash forecast, every debt and covenant on one page, and an experienced read on how serious the situation is.
- Work out the options. We look at every realistic path, from renegotiating with lenders to refinancing, new capital, asset sales or a change of ownership. Then we agree a plan.
- Carry it through. I work with you to put the plan into action, including the conversations with lenders, vendors and investors. I spent 10 years in turnaround and restructuring at PwC, rising to Director, and I've been through these conversations many times.