This Economy Doesn’t Need to be Stressful - Financial Re-Optimization

March 13, 2023
Reece Tomlinson

In this business environment where costs of every kind seem to keep rising and customers are tightening their spending…many companies are finding themselves in challenging positions with few options at their disposal.

During the past few years, many companies entered into debt arrangements when times were good (low interest rates, lots of government money floating around, inflation was not yet rampant and etc.) and the specifics of those financing arrangements were not quite as critical as they are today. Fast forward to today and finding ways to improve cashflow is now a key concern for many of those same companies as cashflows are getting constrained and the general business environment becomes increasingly more challenging.

An often overlooked but very effective way of improving cash flow during periods of challenging times is to re-optimize debt. Re-optimizing debt, as we like to call it at RWT, is the act of reviewing and modifying a company’s debt structure so that it best meets the needs of the organization in that particular window of time.

Our financial re-optimization services can benefit companies by:

  1. Modifying the repayment term and thereby reducing the cash burn. Lower payments equal more cash now.
  2. Modifying the types of debt facilities, used by the company, so it better aligns with the company and its operations. With more flexibility comes less cash flow stress and ideally better cost controls on facilities that are not necessarily the best for the business.
  3. Modify the amount of capital within a debt facility so it better aligns with the actual needs of the company and its operated. In markets like these, having more cash to work with is never a bad thing…

For some companies that are feeling the pinch but otherwise not yet in between a rock and a hard place, re-optimizing can be as simple as working with their financial institutions to review and revise their lending facilities.

Yet for others, it can be a very calculated approach that is designed to improve all aspects of the company’s lending arrangements, including a detailed review of their financial position, in an attempt to improve cash flows, lower costs and increase flexibility. This is where we excel. Over the past five years we have worked with countless companies and have developed the know how to guide our clients towards optimal lending solutions with one or a variety of lenders.

Contact us today for a no-obligation review of how our financial re-optimization services can help your business.

Through our network of private- and commercial lenders we can help you find a debt partner that will not only suit you now, but can grow with you.

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