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Commercial Mortgage Restructuring – Your Business at a Crossroads

The present downturn has placed many businesses at a crossroads, with many finding that their loan payments are no longer possible. Faced with such a predicament it is normal to look for solutions. Walking away is more easily said than done, and typically to be avoided at all costs. Businesses throughout the world are in the doldrums and an escape route can present itself through commercial mortgage restructuring. This is a targeted exercise aimed at saving your business based on the consideration of a number of parameters. It has to be undertaken mathematically based on the principles of disaster management. If you are looking for a quick fix solution to remedy a long term problem, you are inviting more serious trouble in the future.

When faced with a crisis in your business, it is imperative to keep your cool and weigh all of the options at your disposal. You must identify the root cause of the problem, and you must be convinced that restructuring your commercial mortgage will salvage your business. In other words, you have to dispassionately weigh the advantages and disadvantages of seeking a commercial mortgage restructuring.

Like most loans, commercial mortgages have to be serviced regularly at agreed upon intervals and milestones. If you cannot do so due to lack of adequate cash flow, it is essential to determine the reason for the shortcoming. Will the increase in capital available after your commercial 債務舒緩公司 mortgage is restructured lead to a realistic expectation of adequate future cash flow? If so, then there is sense in pursuing a restructured mortgage.

It is necessary to consider the likelihood of near term improvements that may justify a restructuring of your mortgage. One area to assess is the expected improvement in the business environment. This conclusion has to be arrived at based on neither personal feelings nor intuition, but rather grounded in authentic studies by recognized experts. Another factor to evaluate is whether you have recently won new contracts that can realistically be expected to generate more profit in a short period of time.

Commercial mortgage lenders run their businesses solely by the numbers, and the process to determine whether or not your mortgage can be restructured will be exclusively based on the principles of commerce. You should expect to have your debt service coverage ratio, or DSCR, put under the microscope. This metric assesses whether the anticipated cash flow of your enterprise is adequate to service the payments of your restructured loan after you meet all of your normal operating expenses.

Many people are unable to manage a crisis in their business. The increased stress of cash flow problems due to a downturn in your business, combined with a lack of strategies to overcome them, can place even a seasoned business professional in a precarious position. It is wise in these trying times to seek the help of a financial professional who is experienced in working through debt related issues. He will be able to look at your problems in an impartial way and offer you guidance on seeking the right path forward.

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