Struggling to Refinance Business Debt? Time for a Business Balance Sheet Restructuring Plan
“The best way out is always through.”
-Robert Frost
“Struggling to Refinance Business Debt? Time for a Business Balance Sheet Restructuring Plan”
If you're a business owner struggling to refinance your debt, you're not alone.
Many businesses find themselves in a situation where the debt they took on—whether to cover operational costs, expand, or survive a rough period—has become an overwhelming burden.
Business Lenders may be hesitant to offer refinancing, and you may feel stuck, watching your cash flow drain out of your business faster than you can bring it in.
But here’s the good news: You have options
The key to regaining control isn’t just chasing new loans—it’s having a business balance sheet restructuring plan that helps you:
manage your business debt and other liabilities
slow down the outflow of cash
stabilize your business for the long haul.
Why Refinancing Is nOt Always the Answer
Many business owners believe that refinancing is the only way to fix their debt problems. The logic seems sound—replace high-cost debt with a lower-interest loan and stretch out the payments.
But here’s the problem: If your cash flow is already struggling, lenders see you as a risk. They may refuse to refinance your debt, offer you unfavorable terms, or demand personal guarantees that put your personal assets at risk.
Even if you do qualify for refinancing, it often doesn’t solve the core issue—which is that too much cash is flowing out of your business too quickly. If you don’t fix that, refinancing just delays the inevitable financial strain.
The BEST Alternative: Business Balance Sheet Restructuring
Instead of chasing new loans, a business debt and liability restructuring plan helps you:
Lower your monthly obligations
Slow down how fast cash is leaving your business
Keep more money available for operations and growth
Reduce stress and financial instability
This isn’t about just "managing" your debt—it’s about strategically taking control of it so it stops controlling you.
How to Build a Business BALANCE SHEET Restructuring Plan
A strong business debt and liability restructuring plan requires a proactive approach.
Here’s what you need to do:
1. Speak Directly with Your Creditors
One of the biggest mistakes business owners make is avoiding their creditors when debt becomes overwhelming. But ignoring them only leads to worsening terms, late fees, and legal actions that can cripple your business.
Instead, get ahead of the problem by reaching out to lenders, suppliers, and other creditors to renegotiate terms. Many are willing to extend deadlines, lower payments, or restructure terms if they know you’re committed to repaying.
Request longer repayment terms to lower monthly obligations
Negotiate lower interest rates based on your payment history
Consolidate payments to simplify debt management
Most creditors want to work with you—because if your business collapses, they lose too. But they won’t offer relief if you don’t ask.
2. Prioritize High-PAYMENT BUSINESS Debt First
Not all business debt is equal.
Some loans and credit lines have sky-high interest rates, huge daily or weekly payments, or predatory terms that choke your cash flow. These need to be your top priority for restructuring or eliminating.
✅ Identify which debts are eating the most cash flow
✅ Negotiate better terms with these lenders first
✅ If possible, pay off or settle the worst debts first
If a particular loan is bleeding your business dry, even settling it for a lump sum may be a better move than continuing down a destructive path.
3. Slow Down Cash Flow from Leaving the Business
You don’t just need to restructure debt—you need to preserve cash flow so you can operate and grow.
Negotiate better payment terms with vendors & suppliers
Request longer payment cycles so you have more time to pay.
Delay non-essential expenses
If it’s not critical to your business operations, pause or restructure the expense.
Tighten accounts receivable collections
Get customers to pay faster by offering early payment discounts improving collection efforts.
Cut unnecessary costs
Look at every expense and eliminate what doesn’t generate revenue or isn’t essential to operations.
The goal is simple: Reduce how fast cash leaves your business while keeping revenue flowing in.
4. Consider Professional Assistance of a Business Finance Advisor
If negotiations with creditors feel overwhelming, consider hiring a debt restructuring expert. Professionals can:
✅ Negotiate better terms than you could on your own
✅ Identify financial inefficiencies draining your business
✅ Help you create a structured, long-term debt reduction plan
You don’t have to do this alone. The right strategy and expertise can save your business thousands—if not millions—in unnecessary payments and financial strain.
Take Control Now Before It’s Too Late
The worst thing you can do right now is wait and hope for things to get better. They won’t—unless you take action.
If refinancing is off the table, restructuring is your best chance to:
Keep your business cash flow positive
Reduce financial stress and avoid default
Create a long-term path to stability and growth
This is about taking back control of your business finances. Your business isn’t failing—you just need a smarter plan.
Start restructuring today, negotiate with creditors, slow down cash outflow, and protect your business before debt buries it completely.
Don’t wait for the situation to get worse
The sooner you act, the more options you’ll have. Schedule a consultation today and take the first step toward saving your business—and your future.
Remember, more business debt isn’t the answer. A more effective business strategy is.
Click to setup an introduction meeting to discuss your situation and next best steps.
Bernarsky Advisors
Business Finance and Strategy Advice
Refinance. Restructure. Reorganize.
(See more of our articles about Business Finance and Strategy below…)
WHAT IS THE BEST AND SAFEST WAY FOR YOUR BUSINESS TO DEAL WITH HIGH BUSINESS DEBT PAYMENTS?
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