Debt Restructuring in 2021

Taking on debt is a normal part of doing business. The trouble arises when unexpected events occur outside of a typical business lifecycle, such as a pandemic or a recession. The Federal Reserve survey estimates that approximately 70% of small businesses already had outstanding debt before COVID-19. Despite assistance being provided by the government, such as unemployment benefits, stimulus checks, and the ability to defer payments on mortgages and student loans, many businesses and individuals continue to struggle. 

As we start to move away from the previous year, we will only be touching the surface of how much financial damage the pandemic has left behind in its wake. There will be a tremendous rise in debt restructuring and bankruptcy filings. Businesses will go under and be liquidated or acquired, while others will be downsized or rearranged. 

Due to the financial crisis that the pandemic unleashed on small businesses, it would be no surprise if more businesses began opting to restructure or refinance their debt. To avoid closing businesses for good in 2021, it’s imperative that business owners evaluate their debt and take action sooner rather than later. 

Although vaccines are rolling out and some restrictions worldwide are being lifted, if 2020 taught us anything, it’s that anything can happen. If your business is already struggling with its debt and one more blow could mean bankruptcy, start forming a plan to restructure your debt early. 

While getting a jump on restructuring your debt is imperative for 2021, it’s also important to seek the help of a professional in debt restructuring. As mentioned before, many businesses are recovering from 2020 and are looking for a new way to take care of their debt. Because of this, banks may not offer their best deal for you and your business. To ensure your business has its best possible chance of relieving debt pressure, contact a professional to assist you through the process

Give your business its best chance of survival in 2021 by restructuring your debt early on in the year and seeking the help of a debt restructuring expert. It could be the only thing standing between you and your business’s success. 

This article was originally published on

Published by Ferne Kornfeld

Based in Palm Beach, Florida, Ferne Kornfeld is a Principal and Commercial Finance Consultant at Value Capital Funding. Throughout her extensive career, Ferne has over 20 years of experience in the financial services industry. Even more, Ferne possesses thorough and comprehensive knowledge of corporate finance. Ferne, as well as her business partner and husband, Barry Kornfeld, believe in always doing what is best for the client. This philosophy is very hard to find in the world of finance, but they make it their mission. After working within the finance industry for years, Ferne and Barry began to realize there was a gap in the market’s offerings. Companies and businesses, most of them being small businesses, were incredibly over-leveraged but seeking solutions that often led to even more loans & debt that they were trying to alleviate in the 1st place. These small businesses’ applications were often declined due to the amount of money such companies already borrowed. Ferne and Barry soon realized that what these businesses were truly seeking was a way to restructure their debt, not accrue more. Ferne Kornfeld and her husband have decades worth of combined experience, which gave them the thorough background they needed to begin speaking to investors and lenders, creating a niche and revolutionary approach to financing and funding for businesses. With such an incredible niche specialty, and when attending association meetings, they found that no one else offers what they do. Unlike their competitors, Ferne and Barry don’t aim to only lend money. They have gravitated away from pure lending and work almost exclusively to restructure loans so that their clients can manage their debt without taking on more debt.

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