Debt recovery, rescheduling and convertible debt
If your business is struggling to collect its outstanding debts, it might be more effective to outsource this task to an expert with tried-and-tested credit control systems. This is especially true if your debtors are struggling financially. In such cases, specialist solutions could give you a greater chance of collecting their debt without hassle.
At Kreston Global, our consultants can advise you on the best way to recover your outstanding debts. They will draw on a wealth of experience to understand your circumstances and develop the most appropriate solution. If you’d like to find out more about how our suite of specialist advisory services can help you, get in touch with our team of experts today.
The scope of our debt recovery services
As with all of our advisory services, the scope of our debt recovery is broad and will always be tailored to your unique situation. We will use our expertise to find the course of action that gives the greatest chance of successfully recovering your debt.
In the simplest case, we will take on the time-consuming work of issuing invoices, chasing payments with emails or phone calls, or putting your debtors on administrative hold. We can also guide you through the process of issuing a final notice and pursuing legal action.
In some cases, the usual method of recovering debts becomes unsuitable. If your debtor is at risk of insolvency, this could make debt recovery unlikely without recourse to legal proceedings. Since these are often costly in time and money, an alternative avenue like debt rescheduling has advantages and can ultimately be more fruitful in yielding the money you’re due.
Our specialists can advise you on how best to restructure debts, whether by spreading the amount over an extended period or pausing payments altogether. We can help you arrange new terms that give your debtors enough leeway to recover their cash flow and subsequently repay you.
Converting debt to equity
Similarly, it may be more beneficial to arrange a debt/equity swap with a debtor in financial turmoil. If their business is still viable, taking this route might make more sense than liquidation. A debt/equity swap could even yield an equity interest more valuable than the outstanding loan balance if your debtor successfully turns around. If you need advice as to whether converting debt to equity would be a good option for you, our accounting consultants would be more than happy to help. We’ll evaluate your debtor’s company and help you negotiate an equity discount that adequately compensates you for your risks.
If you have financed a company using convertible bonds, you’ll have a decision to make when they approach maturity – what portion of the principal you wish to recover in cash or equity. We can assist you by evaluating shares, helping you achieve the best possible result when settling convertible bonds. We can also guide you through the earlier stages of issuing them and receiving annual coupon payments.
Why choose Kreston Global for debt recovery services?
At Kreston Global, we’re well-versed in a variety of business debt recovery methods. We’ll make it our aim to understand your circumstances from the inside out and find the best path forward. Here’s a sample of the many benefits of becoming a member:
- Access to a global network of 160+ independent accounting firms
- Expertise and insight in a broad range of accounting advisory service areas
- 24/7 global coverage to meet the demands of running a modern-day business
- Exceptional standards of service and adherence to international standards
If you have any questions about how our debt recovery services can benefit you, get in touch by phone or email today – we’d be delighted to help you.