Why shouldn't I do my own debt restructure?

To understand the problems with doing your own debt restructure, ask yourself the following questions:

  • Do I have the time?
    • The amount of time this consumes from your schedule could be very damaging to your daily business operation - think months, not days or weeks. Consider how much revenue you could lose because you're not doing what you do best - managing your customers and building your business.
  • Do I really know how creditable I am with my banks?
  • Do I have a relationship with the person who is going to drive my request through the proper channels? Do I know who the decision maker is?
  • Am I dealing with a collector?
  • Am I dealing with the litigation group within my bank?
  • Will the bank believe my story?
  • Are my forecast projections realistic and how much time did it take me to do a proper forecast?
  • When the bank asks if mine is a viable business, how would I answer?
  • What's going to be the reaction of my banker when I say, "Well, everyone else is in the same boat,"?
  • What will my restructure look like?
    • Is it comprehensive enough?
    • Are the right details in place?
  • What impact will it have on the bank's collateral position?
  • What is the bank's current collateral position before restructure?
  • How much in fees is the bank going to charge?
  • Will the bank increase my interest rate?

There are lots of reasons rental business owners go to professionals to assist in their debt restructure and the cost is usually offset by the amount of revenue you could lose by taking your eye off the revenue-generating side of your business.

Questions or comments, contact Mike Farley at mfarley@equipone.net.

Loading