All small and medium-size businesses require funding to operate and grow. While some business owners manage to bring sufficient capital to their businesses, most of them depend on outside sources to have enough working capital. It can be of various forms, such as equity investments, bank overdrafts, loans from credit providers, or cash from friends and family. And it’s common for many companies to end up with multiple loans from multiple lenders.
These loans are vital to take the business to a steady growth rate, but the company also has to make different repayments every month at different interest rates. If these loans are managed poorly, they can prove costly and damage its ability to grow. Here, taking help from professionals for debt restructuring can make repayments affordable.
Debt Restructuring Benefits:
Consolidating Existing Debts:
Making multiple repayments every month can be time-consuming. By consolidating these debts, you can reduce the monthly repayments you are making into one payment. It’s easy to keep track of, and you can also focus on other essential aspects of your business.
Gives You Space for Financial Planning:
It’s quite challenging to plan a company’s finances when multiple repayments are made at different interest rates. Restructuring debt allows you to create effective financial strategies for business growth.
Reduction in Interest Rates:
If there are multiple outstanding loans, there are more chances that the interest rates cause financial strains to your business. Consolidation of the existing debts reduces the overall interest rates and reduces the outstanding loans’ financial burden.
When you opt for debt restructuring with the help of experts, you will have access to more working capital. Knowing that you will have extra cash on hand, you can make business plans that give a better return on your investments.
At Zimsen Partners, we provide complete guidance to manage and push through adversity essential to your business’s success. You can count on us for
- Advice on different types of business structures in Australia
- Personal risk mitigation
- Business risk mitigation
- Structure your assets
For more information, please call 03 7065 5555.