Benefits of Debt Restructuring for your busines

1. Benefits of Debt Restructuring for your business Debt Restructure means taking a new loan or loan to pay off existing creditors. It can be an effective way to manage debts and cash flow and take advantage of other deals, products, and rates on the market. At Speirs Finance, we offer you personal and business debt restructuring (also known as refinancing). In this post, we have mentioned some benefits of debt restructure, have a look: Consolidate all debts to a single banker: Debt consolidation is not only for restructure; it is one of the most common. After some time, small businesses need to acquire several debts with the different bankers. But most find that the cash flow is affected by the volume of separate payments to be made. Consolidating all debts to a single banker helps with cash flow management as payments are due just once a month instead of across multiple days. Also, it makes payment processing and budgeting much less time-consuming. © Copyright Speirs Finance 2021

2. Access equity or free up cash in your business: Debt can offer you access equity which you can then use to grow your business. So long as the loan to value the ratio stays within acceptable bank rates (it will depend on the product and banker). Changing the loan product will help with cash flow and make sure you have access to cash to cover challenges in your business. For instance, we have helped numerous clients improve their cash flow by replacing them from a principal and interest business loan to a credit facility line, allowing them to access cash only when needed. Lower interest rates: It is an unfortunate but well-known fact that banks do not reward customer loyalty. However, maybe you have with the same bank since childhood, you will not be able to discounts or new customer specials on the loan rates. Debt restructures provide you with an opportunity to reduce the interest rate with a new banker and take benefits of special rates for the new customers. The specialists at Lendfin regularly review all offers on the market, and we can help guide you through obtaining a lower interest rate for both business and personal loans. Restructure to a more suitable loan facility: As the business changes and grows, so too do the financial needs. Whilst a straight business loan may have been suitable in the start-up phase of the business, maybe now there is no other right loan product on the market. For instance, a line of credit allows access to capital only when needed, and asset finance is the best way to take advantage of tax benefits on loans used to finance the purchase of income-producing assets. Consolidate personal and business debts: There is enormous benefit in consolidating business and personal debts to a single banker for small to medium businesses. Whilst your accounts remain separate. You will be able to access the overall performance of your financial position through a single financier, as well as transfer funds quickly and easily from business to personal accounts. © Copyright Speirs Finance 2021

3. There can be costs involved with debt restructuring, so it’s always best to speak to a professional who can help you ensure that you will benefit from the arrangements. We are one of the best Equipment Financing Companies. We offer Machinery Finance, Business Asset Finance NZ, or many other kinds of finance. We ensure that the structure of your loans is right for your business. CONTACT US Address: Floor 11, 63 Albert St, Auckland 1010, PO Box 1061, Shortland St, Auckland 1140 Phone No: 0800 773 477 Email ID: enquiries@speirsfinance.co.nz Website: www.speirsfinance.co.nz/ © Copyright Speirs Finance 2021