In recent years, due to the financial crisis, banks have become scared and are asking their clients to cut their debts owed to them, the banks. What does that mean? This means that companies like yours have had to put more money into paying back their debt and this creates a crunch not just on the working capital but it also means that you are not able to:
2) Go after new business ventures,
3) Hire new employees, or
4) Invest in research and development (R&D).
We understand this and as merchant bankers what we offer is financial relief by refinancing existing mortgages (whether commercial or industrial). In refinancing your mortgage, then the outstanding amount can be increased, so that working capital can be injected into your company. The bonus here is that when refinancing a business mortgage, it becomes possible to combine to that funding any outstanding equipment finance loans or leases, which again creates automatic working capital for your company.
By restructuring your business debt, your cash-flow can also be improved in several ways, by way of: 1) Refinancing and consolidating the existing debt, which will grant you a longer amortization period, and/or 2) By injecting equity, which is equal to giving your company a blood transfusion, taking in consideration its actual financial situation and its development for the next 3-5 years.
When it comes to debt restructuring and re-organization, the core elements are simple and we can help businesses that have:
1) A good product,
2) A good market,
3) A good management team with a positive history (pre-financial crisis),
4) Strong potential for development, and
5) An honest track record.
If you believe your business could benefit from restructuring and re-organization, we'd like to help. Contact us and let us know how we can assist you.