Business Refinance Challenges? Check Again, then to the Next Best Options
“Show me the incentive, and I’ll show you the outcome.”
-–Charles Munger, Vice chairman of Berkshire Hathaway
Business Refinance Challenges?
Check Again, then to the Next Best Options
When you’re a business owner, there are few moments as gut-wrenching as hearing, “We can’t approve your refinancing application.”
It’s not just a rejection; it’s a seismic event that threatens to shake your business operations, reputation, and financial stability to their cores.
But make no mistake—this is not the end of the road. It’s the beginning of a fight, and you have more weapons in your arsenal than you think.
Here’s a no-nonsense guide to what you must do if refinancing your business debt isn’t an option.
No fluff, no sugarcoating—just hard truths and actionable steps to keep your business afloat and your business creditors at bay.
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WHAT IS THE BEST AND SAFEST WAY FOR YOUR BUSINESS TO DEAL WITH BUSINESS DEBT PAYMENTS WHEN YOU CAN’T GET REFINANCED?
It is NOT by stopping ACH payments.
It is NOT by taking on another business loan.
It is NOT by entering into a debt settlement program.
It is NOT ALWAYS a refinancing.
Find out the BEST strategies to get your Business back to where it was
Setup a brief meeting with a business finance & strategy expert to discuss all of your options!
First of all it is best steps to:
[Stop Panicking and Assess the Situation]
The first instinct after a business refinancing or financing rejection is to panic.
Don’t.
Panic leads to paralysis, and paralysis is the last thing you can afford.
Instead, take a cold, hard look at your financial situation.
How much business debt are you carrying?
What are the repayment terms?
Which obligations are non-negotiable, and which can be delayed?Create a brutal, unsentimental breakdown of your business cash flow, income, and liabilities.
If you’ve been burying your head in the sand about how bad it is, now is the time to get real.
We can help you with seeing this reality.
Get a free business debt and cashflow assessment from us and we will recommend the next best steps and solutions for your company.
Knowledge is power, and understanding the scope of your problem is the first step to taking the proper steps to solve it.
[Check with Quality Business Lenders]
I would venture to guess that the “brokers” that you have been working with are not steering you to reputable cost-effective and long-term focused lenders.
Firstly, because they do not know any nor will any of them deal with them.
Secondly, they deal in short-term (less than 1-year) business debt and business “funding” that is high-cost and damaging to your business.
These “joker brokers” deal with these loan-shark types because they get paid high commissions (8% to 12% of your loan or “funding” value) from the lenders, which mean (you guessed it!), they WORK FOR THE LENDERS.
Let us help you assess your full situation… your business debt and cash flow over the last 12-month and give you a full report and analysis — take you through step by step what your options and best strategies are for your business given your current situation.
Stop working with a broker who is focused only on a transactions that pays them quickly and start working with an expert business finance & strategy advisor.
[Get Ruthless with Your Budget]
If you can’t refinance your business debt, it’s time to slash and burn your expenses.
Every dollar matters now. Review your budget with an ax, not a scalpel.
• Cut the fat: Cancel non-essential subscriptions, renegotiate vendor and supplier contracts, and eliminate perks and other unnecessary expenses or “earnings drags”
• Fire underperformers: If you have staff who aren’t pulling their weight, it’s time to part ways. This isn’t about feelings; it’s about survival.
• Sell assets: That unused equipment collecting dust? Sell it. That luxury office space you’re barely utilizing? Downsize immediately.
Take action.
4. [Negotiate, Negotiate, Negotiate — RESTRUCTURE YOUR BUSINESS DEBTS]
Your creditors (most of them) don’t want to see you go under. It’s bad for them, too.
Use this to your advantage.
Call every lender, supplier, and service provider and negotiate new terms.
Be aggressive but realistic. Offer partial payments, extended timelines, or revised interest rates.
Here’s the thing: creditors would rather get some of their money back than none. But they won’t bend unless you push.
Be persistent, firm and prepared to walk away if the terms don’t work for you.
Then move to the next best steps…
5. [Increase Revenue AS Fast AND WHEREVER POSSIBLE]
When business debt refinancing isn’t an option, you need more money coming in—yesterday.
Get aggressive about boosting revenue:
• Upsell existing customers: It’s easier to sell more to current clients than to find new ones. Offer premium packages, bundles, or discounts for larger orders.
• Expand your market: If you’ve been catering to a niche, explore untapped markets. This could mean targeting different demographics or expanding geographically.
• Introduce new products or services: What can you add to your offerings that aligns with your existing business but opens new revenue streams?
6. [Protect Your Personal Assets]
If your business is structured as a sole proprietorship or general partnership, your personal assets may be at risk. Now is the time to put up safeguards:
• Consult your personal and business lawyer: Discuss the possibility of restructuring your corporate entity to separate personal and business liabilities.
• Open new bank accounts: Keep your personal finances completely separate from your business.
• Stop personal guarantees: Avoid signing any new loans or agreements that make you personally liable for business debts.
7. [BUSINESS REORGANIZATION]
Two best options here typically is for businesses to Reorganize while continuing to operate normally (or very close to normally).
NON-BANKRUPTCY OPTION:
Article 9 Reorganization or a controlled sale of business assets leading to a new organization with a new balance sheet.
The core of an Article 9 reorganization is a sale of the business' assets to a new entity, enabling the business to essentially "start fresh" with a new ownership structure.
BANKRUPTCY (Chapter 11 Subchapter 5) OPTION:
Bankruptcy is not a curse word. It is not a “failure”.
Bankruptcy is first and foremost a right and most of all a protection for business owners.
Bankruptcy is not the end; it’s a tool.
If your business debt load is unmanageable and you’ve exhausted all other options, consider filing for bankruptcy but consider doing it the most strategic and suitable way which is typically under Chapter 11 Subchapter 5 (designed to help small and medium-sized businesses with their debt loads) which allows you to reorganize your debts while keeping your business operational.
Basically, a plan is presented to the bankruptcy court to show how the business intends to rearrange its payments and right-size creditor balances, continue operations and eventually pay back all of its creditors (some full balances and some reduced balances).
This plan is typically 2, 3 or up to 5-years in most instances. Then your business can hopefully successfully emerge from the bankruptcy proceeding and carry on as before with significantly less unmanageable liabilities dragging it down.
The business continues to operate during the bankruptcy protection, and the bankruptcy court, after arguments from both sides (business’ side and creditor’s side) decide whether to approve or deny the plan as outlined to the court.
Most over-priced and short-term or predatory business debts are reduced significantly through proceedings like this, especially ones that are unsecured or “behind” your original lender which is in most cases your bank credit line, factor company or the SBA (ie- the first creditor that you took debt from which is normally your “senior-secured priority creditor”).
Of course, there is no guarantee in the world of law, but let’s speak with a legal professional together and sort out what is typical in your situation and what all of the legal risks are to this option.
It might be the best decision, or it might just be strategic preparation in case the out-of-court restructuring and reorganization attempts do not work because of stubborn creditors.
We have worked with many of our clients and their legal counsel to guide them through a Chapter 11 Subchapter 5 corporate bankruptcy reorganization process.
(continue reading below)
WHAT IS THE BEST AND SAFEST WAY FOR YOUR BUSINESS TO DEAL WITH BUSINESS DEBT PAYMENTS WHEN YOU CAN’T GET REFINANCED?
Setup a quick meeting and to discuss all options!
8. [Commit to Relentless Execution]
The most critical step?
Execute.
Ideas, strategies, and plans are worthless without action.
Now is the time for relentless focus and determination.
Set daily, weekly, and monthly goals. Hold yourself and your team accountable.
Eliminate distractions and stay laser-focused on turning things around.
Failure is not an option.
Get to work and get the help of business finance and strategy experts.
9. [Learn the Hard Lessons]
If you survive this crisis—and with the right actions, you can—you must take a long, hard look at how you got here.
What mistakes did you make? Where were the warning signs?
• Did you take on too much debt too quickly?
• Did you fail to diversify your revenue streams?
• Were you overly optimistic about your sales or cash flow projections?
Identify your blind spots and resolve never to repeat them.
This isn’t just about survival—it’s about building a stronger, smarter business.
Inability to refinance your business debts is a devastating blow, but it’s not a death sentence.
This is the moment that separates entrepreneurs who fold under pressure from those who rise to the occasion and come out the other side, victorious.
Get aggressive. Get strategic.
Fight like your business depends on it — because it does.
You’ve got this. Now go prove it.
Stefan Bernarsky
Managing Partner
BERNARSKY ADVISORS
www.bernarskyadvisors.om
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WHAT IS THE BEST AND SAFEST WAY FOR YOUR BUSINESS TO DEAL WITH BUSINESS DEBT PAYMENTS WHEN YOU CAN’T GET REFINANCED?
It is NOT by stopping ACH payments.
It is NOT by taking on another business loan.
It is NOT ALWAYS a Refinancing
It is NOT by entering into a debt settlement program.
Find out the BEST strategies to get your Business back to where it was