Business Debt Refinancing & Restructuring

Existing debt that once worked for your business may no longer fit its current financial position.

High monthly payments, short maturities, expensive financing, multiple credit facilities, or insufficient working capital can place unnecessary pressure on cash flow.

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Lirodean helps businesses evaluate refinancing and restructuring opportunities through banks and alternative lenders.

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What Is Business Debt Refinancing?

Business debt refinancing involves replacing existing financing with a new credit facility.

Depending on the transaction, refinancing may help a company:

• Reduce financing costs

• Extend repayment terms

• Improve monthly cash flow

• Replace short-term debt

• Consolidate multiple obligations

• Increase working capital availability

• Replace an existing lender

• Restructure secured debt

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When Should a Business Consider Refinancing?

Refinancing may be worth evaluating when:

• Monthly debt payments are too high

• Existing financing is expensive

• Short-term debt is creating cash flow pressure

• The company has grown significantly

• The business needs a larger credit facility

• Several loans need to be consolidated

• An existing facility is approaching maturity

• The current lender no longer fits the company’s needs

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Can Refinancing Improve Cash Flow?

Potentially.

Extending maturities, replacing expensive short-term financing, or restructuring existing debt may reduce the amount of cash required for debt service.

The actual benefit depends on the new facility’s interest rate, fees, repayment schedule, collateral requirements, and other terms.

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Can I Refinance Business Debt and Obtain Additional Working Capital?

In some situations, yes.

A new financing structure may refinance existing obligations while also providing additional liquidity.

For example, a company with substantial accounts receivable or other assets may qualify for an asset-based facility that refinances existing debt and provides a revolving working capital line.

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What Types of Debt Can Potentially Be Refinanced?

Depending on the lender and transaction, refinancing may involve:

• Business term loans

• Lines of credit

• Short-term business financing

• Equipment debt

• Asset-based facilities

• Commercial real estate loans

• Multiple existing business obligations

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How Lirodean Helps

We begin by reviewing the company’s existing debt structure, financial performance, assets, cash flow, and objectives.

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Lirodean then evaluates potential refinancing structures and identifies banks or alternative lenders whose criteria may fit the transaction.

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Is Your Current Debt Structure Holding Your Business Back?

The right refinancing structure can potentially improve liquidity and give a growing company greater financial flexibility.