The Covid-19 pandemic has caused a huge economic downturn in the global economy. The business sector has suffered a lot, mainly small and medium scale companies that are experiencing major crises. Low revenue and reduced sales have led to massive layoffs. Even big brands are also reporting a decline in profits due to the pandemic effect. In this scenario, the higher level managements have to rethink debt management.
In case of your company is struggling to deal with debt and interest rate management. If you are on the verge of bankruptcy with a huge burden of financial responsibilities, it is time to consider options for financial restructuring in Singapore. In such situations, most companies consider the liquidation process in which some debt-laden companies take relevant steps to wind up their services and operations. The funds generated with this liquidation process or by selling company assets can be further used to handle the financial obligations and liabilities of the company.
Benefits of Singapore debt restructuring:
Those who are new to the concept of liquidation and company restructuring are advised to go through the benefits of following this process. Experts believe that financial constraints should not cause business insolvency. It is better to follow the restructuring process to deal with the difficulties while benefiting both parties. Note that debt restructuring is not about clearing your debts; rather, it deals with setting new terms and conditions for easing the financial burden on the company.
Below we have listed a few benefits of debt restructuring or liquidation process Singapore:
- Improving cash flow in business
Cash flow is necessary for all businesses. If your company is facing some problems in financial management, it may hamper other activities of the business as well. Company restructuring can help you to manage your debt and cash flow problems with ease. When you have more cash flow, it will be easier to maximize operations while generating enhanced revenue.
- Preventing bankruptcy
Business owners often get into trouble due to rising debts. The risks have increased more during a pandemic. Even large companies have also experienced serious troubles with cash flow. The liquidation process Singapore can help companies to achieve great revenue while avoiding a shutdown. When your company is not able to carry on with current debt agreements, debt restructuring plans may help you deal with the burden.
- Find reliable interest rates
Restructuring can help you to reduce loan repayment rates. Generally, lower rates lead to lower monthly payments, and it may automatically reduce the financial burden. You can talk to the lenders and work on a new debt structure to handle the burden. Some negotiations can bring more relief to your business in a crisis.
When you are ready to go ahead with Singapore debt restructuring, it is good to hire professionals in the city to proceed ahead with relevant formalities. They can guide you better on how to define the restructuring process in favor of your company.