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Negotiating with Creditors

A creditable business plan is imperative when re-negotiating with creditors. "Trust me" doesn't work anymore.

Cash flow is key to preventing a company from entering the turnaround stage. Most creditors will work with clients that are honest and upfront about the current situation. They are even more willing to work out a new financing plan if the client has a well-prepared, realistic plan to prevent further business deterioration. After all, it's in everyone's best interest for the business to meet its financial obligations and to grow.

We help clients negotiate with creditors by:

• Developing realistic business plans acceptable to creditors
• Meet with you and your banker to help explain why and how this is a viable plan
• Introduce you to other potential funding sources
• Lend creditability to turnaround plan

The Situation:

A technology company assumed double digit growth would continue for at least the next 2 years. Based upon this growth assumption, additional investments are made in fixed assets and people financed with debt.

The Problem:

• When volume and revenue started to slow, the company assumed it would bounce back the next quarter
• Receivables were taking longer to collect and covering debt payments and payroll was becoming difficult.

The Solution:

• Talk to lenders before becoming delinquent on loan commitments
• Present lender with realistic business plan to increase cash flow
• Keep lender informed of company's progress

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For more information:
For more information on profitability consulting from The Adare Group, contact us at 630-399-7006, or info@TheAdareGroup.com to talk to one of our consultants.