Debt Restructuring & Refinance
As a business owner you invariably rely on your commercial lender to support you through the term of your debt as well as for the day-to-day funding of your businesses.
So, when you encounter trading difficulties or you are unable to meet your loan repayments your commercial lender will resort to applying pressure, either by calling in their debt, withdrawing access to funds, or restricting availability to future debt, this can create an extremely challenging time for your business and your livelihood and you’ll require expert support and we at Stewart Hindley can help when it seems that nobody else can.
After an initial consultation to understand the particulars of your situation, we then create a strategy to navigate the way out of business debt with practical advice based on our proven track record of securing consensual outcomes whilst maintaining your banking relationship and support of your lender during the restructuring and refinancing process.
Specialist, Impartial Advice
Stewart Hindley & Partners are very adept at discovering unconventional strategies and solutions to resolve our clients’ debt dilemmas. This means that when you’re with us, you can be assured that we’re working for you to secure the best possible outcome available.
If our initial review indicates you have a commercially sound case, and we agree to move forward together, then you are in experienced hands and we have a remarkable success rate within the hospitality and leisure sectors in particular.
Debt restructuring - free consultation
Stewart Hindley & Partners restructuring team will:
- Undertake a full review of your business
- Negotiate and agree a recovery strategy with your existing Commercial Lender
- Introduce new Commercial Lenders who may be able to refinance your existing debt
- Achieve a repayment forbearance period whilst restructuring takes place
- Support you through the entire negotiation process to satisfactory outcome
From the outset, we establish clear terms of reference with you and your lender, so we understand what your priorities are and what must be protected.
What triggers a financial review?
It’s probably due to a breach of a financial covenant or convents that requires you as the borrower to notify your lender who’ll be entitled to exercise some control over the business.
A company’s financial banking covenants with its lenders will typically include:
- Cashflow Cover: Whether a business has sufficient cash flow to service its debt
- Interest Cover Ratios: Whether a company has sufficient profits to cover interest payments
- Leverage Ratios: A company’s ratio of borrowing to its operating cash flow or earnings before Interest, Tax, Depreciation, and Amortization (EBITDA)
- Net Worth: A minimum amount of value in tangible assets
- Working capital tests: The ratio of current assets versus current liabilities
Why is a business loan called in?
If a borrower breaches a financial covenant then a lender will be permitted to accelerate the loan and cancel any rights to draw down further funds. A breach of a financial or operating covenant is an event of default and may lead to your debt being “called in” and LPA Receivers being appointed to act for the lender to recover their security.
Therefore, it is extremely important that you seek advice from Stewart Hindley in advance of any potential duress to avoid any action from your lender which may ultimately result in your business loan being called in.
How much will the service cost?
Our fees are designed to ensure that we are totally aligned with your objectives. We have designed, over years of experience, a balance between commitment fees and success fees that makes sure that we are in it together. Our objective is for clients to always see value in our fees that significantly exceeds cost.
What should I do next?
If you are facing duress with your lender and would like Stewart Hindley & Partners to explore suitable funding or refinancing solutions, please get in touch with our restructuring team.