Debt restructuring

It’s not uncommon that debt arrangements entered on the assumption of one set of forecasts are inappropriate when the actual business outcome differs. Should this happen, debt should be pro-actively restructured or refinanced to make servicing costs and cash burden appropriate to support continued trading. And that’s when our debt restructuring experts can help.

Helping businesses to restructure debt

As existing debt facilities amortise (run off) at different speeds, a business may find itself with an overly expensive or cash burdensome structure.

There are many good reasons why you should consider restructuring your debt to free up your cash flow. If you have £1m or more of debt and would like Shaw & Co to explore restructuring solutions, please complete our Credit Suitability Survey by clicking the button below.

What does this service provide?

If you need to restructure or refinance your debt, here’s some of the support our specialists can offer:

  • We can strategically review your current debt load and estimate your available debt capacity across multiple borrowings and different types of debt.
  • We can negotiate with your current lender to seek repayment holidays, change amortisation profiles, explore facility extensions and where possible, instrument conversions.
  • If suitable arrangements cannot be reached with your current lender, we can arrange more suitable replacement capital with a lender that’s better suited to your changed needs.

Important things to consider

  1. When a business finds itself in difficulties, it can seem daunting to approach your lenders for fear of unintended consequences. Early intervention, preferably with a full knowledge of available alternatives, is always better.
  2. If a borrower is under financial distress that prevents timely repayment on a loan, debt restructuring can benefit all parties by protecting both the business and the lender.
  3. Full debt refinancing can offer opportunities for additional liquidity compared to restructuring of existing debt. A borrower can leverage a newly obtained loan with better terms to pay off a previous loan and often end up with additional capital to invest in the business.
  4. Many businesses struggle with existing debt facilities, not realising that they have assets that offer much more optimal debt solutions, such as property, customers invoices, stock, equipment and others. This warrants a holistic review of debt in your business.

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 carrying more than £1m of debt in your business and would like Shaw & Co to explore suitable refinancing solutions, please complete our Credit Suitability Survey by clicking the button below (it should take no more than 5 minutes to complete).

Alternatively, if you would like discuss how you can improve your company debt structure and servicing burden, please contact one of our corporate finance experts shown on this page, or click the arrange a meeting button.

“If you find that your business is in cash flow difficulties, there is a lot of capital in the market to support you and the situation is far from helpless. However, knowing which institutions to go to and how to deal with them is critical in setting up the debt strategy that’s right for you.”

Alexei Garan, Head of Debt Advisory

Advantages

Peace of Mind

Engaging Shaw & Co means your business cash flow and any issues are assessed by experts with considerable experience in solving capital shortages and cash flow problems.

Best of Market

Shaw & Co can help you access the best available market solutions to fit your requirements, within a competitive process involving numerous funders with whom we have long standing relationships.

Orderly Process

Our knowledge of the funders products, requirements and risk tolerance means we can manage the most efficient and competitive funding process on your behalf, whilst you focus on running your business.

This is for you if...

You are looking to restructure or refinance your existing debt to improve cash flows and unlock business performance. You value the expertise we can offer to find you the right solution in a fragmented and complex marketplace, whilst you focus on running your business.