Business debt restructuring: what it is and when it helps
Restructuring means renegotiating what you owe, the payment size, the schedule, sometimes the balance, so the debt fits what your business actually earns. It is the middle path between paying as-is and default. This page is general information, not legal advice.
Why timing decides everything
Owners generally have more choices before a default than after one. Options narrow when accounts freeze. If daily debits are eating your deposits, the time to look at restructuring is while payments are still current.
The law is more on your side than it used to be
New York banned confessions of judgment against out-of-state business owners in 2019, and its Attorney General won a judgment of more than one billion dollars against a merchant cash advance operation, cancelling more than half a billion dollars of merchant debt for over 18,000 small businesses. Twelve states now require real cost disclosures on covered financing. Find yours in the state directory.
Red flags federal regulators have acted on
- Anyone who tells you to stop paying and park your money in an escrow account while you hope for the best.
- Anyone who wants a large deposit before doing any work.
- Anyone who pressures or threatens you. Regulators permanently banned one company from the industry over conduct like that.
See funding options that may fit your business
See Your OptionsKeep Going Capital is a marketing and comparison service, not a lender. We do not make credit decisions. We connect business owners with independent funding providers.