Build a debt payment schedule around operating cash flow.

Restructuring, refinancing, and settlement

Restructuring requests changes to an existing agreement, such as payment timing or an extension. Refinancing replaces an obligation with new financing. Settlement seeks an agreed resolution that may be below the claimed balance. These options can have very different upfront costs and consequences.

BDI is a consulting practice, not a lender. A review does not approve a new loan or obligate creditors to modify agreements. If refinancing is under consideration, evaluate lender eligibility, security requirements, fees, and total repayment using actual written offers. The SBA resource below describes its loan programs; it is not an endorsement or an eligibility determination.

What a credible proposal includes

Prepare a debt schedule showing the creditor, balance, payment frequency, maturity, collateral, guarantee, and current status of every obligation. Reconcile that schedule against bank withdrawals so the forecast does not omit automatic debits or irregular payments.

Then show the requested payment, the reason it is needed, and the evidence supporting the amount. Explain how seasonality, late customer payments, or another operational issue affects cash flow. A proposal should say what changes if revenue misses the forecast, rather than assuming every week will be an average week.

An MCA reconciliation request should be assessed against that particular contract. A bank modification or equipment lease extension is a different request. Do not assume a clause or procedure from one agreement exists in another.

Payment relief is not necessarily savings

A longer term can lower the periodic payment while increasing total cost. Ask for a before-and-after schedule showing every payment, fees, any remaining balloon amount, and the final maturity. Identify which guarantees and security interests remain in place.

Illustration only: spreading a hypothetical $60,000 obligation from 12 equal monthly payments to 24 would change a $5,000 payment to $2,500 if no additional charges applied. The balance has not been reduced. Actual amendments may add interest or fees, so use the creditor's proposed schedule instead of this simplified example.

Fees, timing, and creditor decisions

The initial BDI assessment is free. Request the complete written scope and fee proposal before deciding to engage. Confirm who handles creditor contact, whether legal review costs are separate, how payments will be made, and what work continues if a creditor declines the proposal.

There is no guaranteed approval date. Organizing the file, getting creditor responses, negotiating terms, and completing amended payments are separate stages. Ask for a plan tied to those milestones and a named point of contact, rather than relying on a general completion promise.

Until accepted terms are documented, the existing obligations and any court deadlines need attention. A consulting engagement alone does not amend an agreement, release collateral, or promise protection of business or personal credit.

When a modification may not be enough

If the operating forecast cannot support even a reduced payment, extending the term may only postpone the same problem. Compare a funded settlement, an operational change, or a discussion with bankruptcy counsel. Active lawsuits or enforcement notices require legal attention in parallel with the financial review.

Tax payment plans have their own rules. Use the IRS installment-agreement resource below with a qualified tax adviser rather than treating a business tax liability as another private loan modification.

What to bring to an initial review

• A creditor-by-creditor debt schedule
• Signed loan, MCA, equipment, and guarantee documents
• Bank statements, financial statements, and a weekly forecast
• Covenant notices, default correspondence, and upcoming maturities

Questions owners ask