You're facing the most challenging economic period in the history of our industry. Today, you might need to make a critical financial assessment of your business to determine if you are taking full advantage of the essential elements of basic and sound financial planning to meet your needs and to ensure continued success.
In Financial Forum, a special financial section of the RentalWatch eNewsletter, we'll provide the information you need for the financing and operation of a successful business.
We introduce this special section with a lead-in to a continuing and comprehensive series of informative and basic financial advice covering the art and science of financial stability - to help you and your business.
For many rental businesses in financial difficulty, debt restructuring is a viable option. There are, however, several misconceptions about the process that can stand in the way of it being a success.
Common mistakes in debt restructuring
There are five common mistakes or assumptions rental owners make when thinking of the possible restructuring of their debt and the planning of a more profitable financial future:
1. You must be in financial trouble to request a debt restructure from your financial institutions.
2. "I never want to let my banks know that I am having financial difficulty, so I'll try and ride it out."
3. Rental owners generally do a poor job of forecasting cash flow and feel that they must paint a rosy (and usually unrealistic) picture in order for banks to approve the restructure.
4. Rental owners generally have no idea of the opportunities available to them for restructuring their debt, or requesting short-term restructure.
5. Failure to deal with all of their financial institutions, and therefore underestimate (to their detriment) how much time it takes to forecast, build and make a proposal and presentation, prepare the required documents, and the amount of follow-up required for debt restructuring.
In subsequent editions of Financial Forum, each of the above topics will be discussed in greater detail.
In addition, this exclusive editorial feature will present a description of fundamental and vital elements of financial programming that are necessary for your success. Examples of our early discussions will include:
And, to make certain we are covering your interests, we welcome your input. To submit questions and comments to Mike Farley, email firstname.lastname@example.org.