Business Debt Restructuring — Renegotiate Terms, Regain Cash Flow

Explore Restructuring Options

When restructuring is the right answer (and when it isn't)

Restructuring fits when:

• Your business revenue is steady but payments are too aggressive
• Current debt is recent (under 12 months old)
• Lender relationship is still workable (no default, no escalated collection)
• You can afford the debt at modified terms (lower monthly, longer timeline)

Restructuring doesn't fit when:

• Debt amount is the real problem, not the terms, you need settlement
• Multiple stacked MCAs can't be individually restructured at scale, you need consolidation or settlement
• You've missed payments and the lender is hostile, you need settlement
• Bankruptcy is being discussed seriously, see /bankruptcy-alternative/

What restructuring actually looks like

Common restructuring approaches we facilitate:

Extended term: 12-month debt becomes 24-month debt. Monthly payment drops 50%, total interest rises modestly.

Reduced rate: 28% APR becomes 18% APR. Monthly payment drops, total cost drops.

Payment schedule change: Daily ACH becomes monthly. Doesn't change total but dramatically improves cash flow visibility.

Deferred principal: Interest-only for 6 months. Bridges a temporary cash flow crisis.

Partial forbearance: Lender pauses payments for 30-90 days. Rare, situation-dependent.

Which one fits depends on the specific lender, your specific situation, and what you can realistically afford.

Who restructuring lenders will negotiate with

Not every lender restructures. MCA lenders rarely restructure, they'd rather let you default and sue than renegotiate terms. Traditional business lenders (SBA, bank loans, established fintech lenders) are more open to it.

That's why restructuring is typically a piece of a bigger strategy, not a standalone solution. BDA often uses restructuring for SBA or bank portions of a client's debt stack while pursuing settlement on the MCA portions.

How does the restructuring process work?

Step 1, Document review. We look at your loan agreements, payment history, and current terms.

Step 2, Lender analysis. We identify which of your lenders are open to renegotiation and what leverage exists.

Step 3, Proposal development. We draft specific modification requests based on what's realistic for your situation and likely approvable by each lender.

Step 4, Negotiation. We present proposals, handle counter-offers, and get terms in writing before you sign anything.

Step 5, Execution. Modified terms take effect. You manage the new payment schedule. We stay available for the duration of the program.

Timeline: 4-12 weeks from start to executed modification, depending on lender responsiveness.

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Can I restructure an MCA directly?

Rarely. MCA contracts are structured as "purchase of future receivables" not loans, and most MCA lenders refuse to renegotiate. That's why MCA debt usually needs settlement or consolidation, not restructuring.

Does restructuring hurt my credit?

Usually not directly, but a formal modification on a lender's records can affect future underwriting. Most clients accept this trade-off, restructuring prevents worse credit impact from default.

How much does restructuring cost?

BDA's fee for restructuring-only engagements is a flat fee or percentage of the debt restructured, disclosed in writing before enrollment. Smaller than settlement fees because the work is different.

Will my lender agree to restructuring?

Depends on the lender and your leverage. Some lenders restructure readily if they believe it prevents default. Others refuse. Our consultation includes an honest read on what's realistic for each of your specific lenders.

How fast can restructuring happen?

4-12 weeks typical. Faster than settlement, slower than consolidation.

What if restructuring doesn't work?

Settlement becomes the next step. Not every engagement starts as restructuring and stays there, sometimes we begin restructuring and transition to settlement when lenders refuse modification.

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