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The pandemic has had an unprecedented effect on everyone personally and especially financially. Businesses everywhere are struggling to keep their doors open. Many businesses that are struggling with debt aren’t able to make their payments and the threat of bankruptcy is slowly becoming a harsh reality for them. However, debt restructuring can save businesses who have been hit with financial challenges due to the coronavirus. 

During the pandemic, the approach to debt restructuring has slightly changed. Now, creditors are more likely to be swayed to restructure debt if a business has clearly been affected by the virus. If a business comes to its creditors with financial hardship, in distress, and with concrete proof of the financial challenges the pandemic has brought their business, creditors are much more likely to work with them- providing they have the right restructuring team assisting them.     

When restructuring debt in a pandemic, businesses are discovering that their budgets and what they can afford to pay creditors have changed significantly. Before attempting to restructure their debt, they have to rework the budget entirely. Due to social distancing rules and quarantine keeping customers inside for the majority of the time, business is not what it used to be. A business’s budget has to now factor in the uncertainty that comes with the pandemic. Now, a business could potentially only be able to afford a fraction of the original debt installment. Because of this, a company audit needs to be done to determine how much the business can afford to pay before going to their creditor. This budget needs to keep the business operating normally while also having enough to pay off debts and bring in cash flow.  It does a business’s creditors no good if the business struggles so hard to make short term debt service payments, that it can’t survive in the intermediate or long term.   

Even though creditors are being more understanding due to the pandemic, negotiations can still be a serious challenge. Creditors are still very aggressive, and for those businesses without any restructuring assistance, it’s a lot like a lawyer representing himself in court, or a barber trying to give himself a haircut- it hardly turns out well.  When trying to go it alone, businesses will find that creditors have terms that might not work for them. This is why it is imperative to take the time to carefully evaluate the creditors’ terms. If a business fails to do this, they can end up accepting formulas and repayment plans that they cannot manage. This is also why having a debt restructuring expert is essential when attempting to renegotiate even before trying to do it yourself.  One’s creditors will likely be represented by experienced debt restructuring attorneys, and most business owners are immediately out of their comfort zone.    

Going to a debt restructuring expert, especially during the pandemic, can help improve a business’s cash flow, prevent bankruptcy, and help them to get lower rates than if the business were to do it on its own. There are no upfront fees involved, too.  To determine the best repayment strategy as well as save your business from debt during times of uncertainty, consult a debt restructuring expert.  The end result will be that your balance sheet will be restructured and “right-sized”, while your competitors will still be wobbly and on the defensive, if they can survive at all.  In most instances, the earlier one attacks this problem, the better one’s outcome. 

Use All Government Support Programs

Also, take advantage of all available government programs to help small businesses.  For instance, the SBA has this EMERGENCY LOAN available now, offered for a limited time, that every business owner needs to check out (

Loan Benefits

  • Loan Up To $150,000 
  • 30 Year Term – 3.75% Interest
  • No Payments for 1 year

Minimum Requirement

  • 2019 Annual Sales Of $250,000+ reduced to ONLY $80,000 (change is so new pls ignore website @$250k)
  • 650+ Owner’s FICO Score Preferred (sometimes approved as low as 601)