RESTRUCTURING & TURNAROUND FINANCING SOLUTIONS

FINANCING THAT GETS YOUR BUSINESS BACK ON TRACK, FAST

Fast, flexible restructuring & turnaround financing to get your business the working capital it needs to return to stability & growth.

Let’s Talk

See how we can help your business

    By opting-in and submitting this form you consent to receive marketing email and text messages (e.g. promotions, product information, industry insights, etc.) from eCapital. See our Privacy Policy for further information.
  • This field is for validation purposes and should be left unchanged.

Let’s Talk

See how we can help your business

    By opting-in and submitting this form you consent to receive marketing email and text messages (e.g. promotions, product information, industry insights, etc.) from eCapital. See our Privacy Policy for further information.
  • This field is for validation purposes and should be left unchanged.

ACCELERATE YOUR COMPANY’S RECOVERY

Many companies delay deploying a Turnaround & Restructuring strategy until pressured by lenders or suppliers. However, the likelihood of a successful turnaround increases when the strategy is implemented at the first signs of distress. Prompt action not only boosts success chances but also reduces turnaround costs and management distractions.

eCapital streamlines the funding process to get clients the funds they need, so they can turn their business around quickly and come back stronger. Using our asset-based lending products, we can work with you and your advisors to craft a financial plan allowing your company to execute its operational plan and achieve the objective of your turnaround.

HAS YOUR BUSINESS RECENTLY EXPERIENCED A TRIGGER EVENT?

Trigger events are sudden, unexpected changes that can significantly impact your business. Here are a few examples:

  • Have you broken a bank covenant?
  • Has the bank called your business loan?
  • Has the bank reduced your business line of credit?
  • Are you behind on your business taxes?
  • Is your business on the verge of not making payroll?
  • Have you missed equipment payments?
  • Have you experienced a sudden decline in new business?

Our team of restructuring & turnaround experts help businesses that have experienced these and other trigger events recover quickly.

UNLOCK THE CAPITAL YOU NEED TO RECOVER

Having adequate cash flow enables businesses to bounce back effectively, providing the necessary working capital to navigate through challenging times and seize emerging opportunities for recovery.

Our creative financial solutions offer a crucial safety net for businesses in poor financial health, providing them with the necessary capital to restructure operations, address liabilities, and pave the way towards financial recovery.

IDENTIFYING A BUSINESS IN DISTRESS

To help identify when it’s time to deploy a Turnaround & Restructuring strategy and explore financial options, below are the three primary stages of a company in distress, along with key warning signs.

BUSINESS INDICATORS

* Uncontrolled growth of the business
* Decline in marketing leads
* Stagnant or declining revenue
* Obsolete inventory
* Decline in working capital
* Reduced capital investment programs
* Declining industry fundamentals
* Increase in employee turnover
* Manufacturing quality issues due to rushed work
* Poor accounting systems and low financial reporting quality

FINANCIAL INDICATORS

* Sustained declining or negative cash flow
* Consistent overdrafts
* High interest payments
* Long cash conversion cycle
* Violation of debt covenants
* Revolver drawdowns
* Poor capital budgeting
* Extended debtor or creditor days
* High debt-to-equity ratio
* Low current ratio
* Increase age in outstanding accounts payable or receivable

BUSINESS INDICATORS

* Customer attrition
* Increasing or excessive overhead costs
* Falling margins and other profit modifiers
* Expedited or missed shipments
* Loss of key customers
* Regulatory inquiries
* Management turnover
* Declining relationship with the bank
* Poorly planned business succession

FINANCIAL INDICATORS

* High levels of outstanding receivables
* High interest payments
* Borrowing to cover shortfalls
* Rejection of additional credit from lender
* Sustained decline in revenue
* Declining EBITDA margins
* Late payments to creditors
* Out-of-formula loans
* Unresolved near-term debt maturities
* Large contingent liabilities
* Going-concern opinion

BUSINESS INDICATORS

* Undue optimism
* Forbearance letter received
* Increasing staff attrition
* Decreased morale and management issues
* Unexpected sales of stock and assets

FINANCIAL INDICATORS

* Taxes are not being paid
* Payroll is in danger of being missed
* Vendors cut off credit
* Employee benefits have not been paid
* Current liabilities exceed current assets
* Reduction in force (RIF)
* Payments on deliver of product (POD)
* Full vendor payment triage
* Restructuring professionals brought in

INDUSTRIES WE SERVE

WE OFFER RESTRUCTURING & TURNAROUND SOLUTIONS FOR ALL TYPES OF BUSINESSES

We specialise in the provision of cashflow solutions to small and medium-sized businesses. If you have ambitious plans to grow, our solutions are designed to help you do just that.

TRANSPORTATION & LOGISTICS

MANUFACTURING

STAFFING

FOOD & BEVERAGE

SERVICE

CONSUMER PACKAGED GOODS

HEALTH AND BEAUTY

CONSULTING

OILFIELD SERVICES

WHOLESALE & DISTRIBUTION

APPAREL

TELCOM/WIRELESS

WHO WE WORK WITH

OUR STRENGTH LIES IN TEAMING UP WITH YOUR PARTNERS & ADVISORS

In today’s ever-evolving business environment, unique challenges demand innovative and customized financial strategies. Our expertise in collaboration brings diverse perspectives and expertise to the table, fostering a richer understanding of the situation and facilitating the design of more effective and tailored solutions.

Turnaround Consultants

We bring valuable financial solutions and resources to support your company’s liquidity and working capital needs during the turnaround process. We can provide flexible financing options, bridge funding gaps, and assist in managing cash flow challenges. On the other hand, the turnaround consultant brings strategic insight, operational expertise, and a comprehensive understanding of the factors contributing to your financial distress. They can develop and execute a customized turnaround plan, identify areas for improvement, optimize business processes, and facilitate a return to profitability.

By combining the expertise of both entities, you can create a powerful synergy that enhances the effectiveness of your business turnaround efforts. eCapital and your turnaround consultant create a dynamic partnership that addresses your business’s financial and operational aspects, maximizing the chances of a successful turnaround and revitalizing your company’s prospects.

Debt Advisors/Debt Counsellors

eCapital brings valuable financial solutions and resources, providing access to non-traditional financing options and innovative debt restructuring solutions. We can help alleviate financial pressures, optimize your capital structure, and support your working capital needs. Simultaneously, the debt advisor offers specialized knowledge and experience in debt management, negotiation, and restructuring. They can assess your debt obligations, develop a comprehensive debt management plan, and provide guidance on navigating complex financial situations.

By combining the expertise of these two entities, you can establish a robust collaboration that amplifies your debt management strategies and financial decision-making. The alternative finance company and the debt advisor create a powerful alliance that enables you to effectively manage your debt, reduce financial risks, and set a path toward long-term financial stability and success.

Chartered Professional Accountants (CPAs)

This collaboration combines the financial expertise of eCapital with the specialized knowledge and insights provided by the CPA. Together, we can optimize your financial management and decision-making processes. eCapital brings valuable funding solutions, assisting with cash flow management, working capital needs, and innovative financing options tailored to your business. On the other hand, the CPA offers comprehensive financial analysis, reporting, and strategic guidance. They ensure accurate financial records, provide insights on tax planning, identify cost-saving opportunities, and offer advice on financial compliance. By partnering with a CPA, we can leverage our expertise to make informed financial decisions, maintain financial transparency, and achieve optimal financial health.

The synergy between eCapital and your CPA enhances your financial management capabilities, empowering your business to thrive and reach its full potential.

Strategic Advisory Firms

The collaboration of these two entities combines our team’s financial expertise with the strategic insights and guidance provided by the advisory firm. This partnership empowers your business to make well-informed decisions and execute effective strategies for growth and success. eCapital brings valuable financial solutions, including flexible funding options, working capital support, and innovative financing structures tailored to your needs. Meanwhile, the strategic advisory firm offers strategic planning, market analysis, competitive intelligence, and guidance on business development. They help identify growth opportunities, optimize operations, and navigate market challenges.

By partnering eCapital with your strategic advisory firm, you’ll gain access to a wealth of knowledge and experience, enabling you to make strategic decisions with a clear vision for long-term success.

Financial Advisors

This collaboration combines the expertise of both entities to provide comprehensive financial guidance and support. eCapital brings valuable financial solutions, such as flexible funding options, working capital assistance, and innovative financing structures. We can help address cash flow challenges, optimize capital allocation, and support your business’s financial needs. Meanwhile, the financial advisor offers strategic financial planning, investment advice, risk management strategies, and expertise in financial analysis. They provide insights into wealth management and financial goal-setting and help navigate complex financial decisions.

eCapital and your financial advisor create a powerful partnership that combines financial expertise and personalized guidance, ensuring that your business makes sound financial decisions, achieves financial goals, and maximizes its overall financial health.

Attorneys

Partnering eCapital with your attorney can bring tremendous benefits and peace of mind to your business.

This collaboration combines the financial expertise of eCapital with the legal knowledge and guidance the attorney provides. Together, they ensure that your financial transactions and agreements are legally sound, compliant and protect your business’s interests.

eCapital offers valuable financial solutions, such as flexible funding options, working capital support, and innovative financing structures. Simultaneously, the attorney provides legal counsel, assists in contract negotiation, reviews legal documents, and ensures regulatory compliance. This partnership helps you navigate complex legal matters related to financing, risk management, and business transactions.

By having an attorney as a partner, eCapital can confidently make informed decisions while minimizing legal risks and maximizing legal protection. This collaboration ensures that your business operates within the bounds of the law, mitigates legal challenges, and maintains a solid legal foundation for sustainable growth and success.

eCapital and its team of experts are proud members of

WHY CHOOSE US AS YOUR TURNAROUND & RESTRUCTURING PARTNER?

eCapital is an award-winning, industry-leader in the restructuring & turnaround funding space. Here are a few reasons why businesses choose eCapital as their restructuring & turnaround partner:

Better Value

We offer the highest asset valuations at competitive Annual Percentage Rates (APR).

Maximum Valuations

We provide industry-leading valuations on assets with up to 85% Net Orderly Liquidation Value (NOLV).

Fast & Easy Application

Applications are received, reviewed, and qualified within days and we pride ourselves on quick, easy & honest service.

Industry Expertise

Due to our extensive years of experience in 80+ industries, we’re able to quickly provide your business with a tailor-made solution.

Unparalleled Management

You can count on our team to be a valued consultant for the life of your financing and beyond. Your success is our success.

Fewer Restrictions

Due to our experience, we offer fewer restrictions than the banks, minimal reporting requirements, and limited loan covenants.

DON’T JUST TAKE OUR WORD FOR IT

For over 25 years eCapital a freight factoring company has helped more than 30,000 businesses grow. We want to do the same for you. Take a look at the latest reviews from our customers on TrustPilot!

LEARN MORE ABOUT
RESTRUCTURING & TURNAROUND

What is Exit Financing?

Exit financing is a type of funding provided to companies that are emerging...
Read More

Survive and Thrive: How to Rescue Your Business from Insolvency and Grow

Despite last year's surprising GDP growth, business bankruptcies surged ove...
Read More

Private Equity Success: How an Asset-Based Loan Rescued a Struggling Portfolio Company

In the world of private equity, investments often come with the promise of ...
Read More

FREQUENTLY ASKED QUESTIONS

What is the most common mistake companies make when in distress?

One of the most common mistakes companies make when in distress is delaying necessary actions. This typically happens due to denial or lack of awareness about the severity of the situation. The sooner the company acknowledges financial distress, the more options it will have to address the issues. Here are a few more common mistakes:

  1. Ignoring Warning Signs: Many businesses often overlook or dismiss early signs of distress, such as declining sales, increasing debts, or consistent cash flow problems.
  2. Failure to Seek Professional Help: Many businesses wait too long before seeking help from restructuring or turnaround professionals who have the experience to navigate through such situations.
  3. Poor Communication: Businesses often fail to communicate effectively with stakeholders, including employees, creditors, and suppliers about the state of the company. This can lead to loss of trust and even more financial problems.
  4. Inadequate Cash Flow Management: Many distressed businesses do not manage their cash flow effectively, leading to insufficient funds to cover operational costs.
  5. Making Rash Decisions: In an attempt to rectify the situation quickly, businesses might make hasty decisions such as drastic cost-cutting without considering the long-term impacts on business operations and morale.
  6. Lack of a Contingency Plan: Many companies do not have a plan in place for dealing with financial distress, which can leave them scrambling and unsure of the best course of action when trouble arises.

Remember, the key to managing business distress effectively is to act early, seek professional advice, and communicate openly with all stakeholders.

What are the key metrics you will evaluate to help form a Turnaround & Restructuring plan?

When forming a Turnaround & Restructuring plan, there are several key metrics and aspects that need to be evaluated:

  1. Profitability Metrics: Gross and net profit margins can give an indication of the overall profitability of the business and help identify areas where costs may need to be reduced.
  2. Liquidity Metrics: Cash flow statements, current ratio, and quick ratio help determine a company’s ability to meet short-term obligations.
  3. Solvency Metrics: Debt-to-equity ratio, interest coverage ratio, etc., can provide insights into a company’s ability to meet long-term obligations and the level of risk associated with the company’s debt structure.
  4. Operational Efficiency Metrics: These include inventory turnover, days sales outstanding, and days payable outstanding, among others. These ratios can show how well the company is managing its resources.
  5. Market Metrics: Market share, growth rate, customer retention rates, etc., can provide insights into a company’s competitive position.
  6. Employee Metrics: Employee turnover, productivity, and satisfaction can give an indication of the health of the organizational culture and the level of employee morale.
  7. Budget Variance Analysis: Comparing actual financial outcomes with budgeted or forecasted ones can identify areas of the business that aren’t performing as expected.

The specific metrics that are most relevant will depend on the industry and the specific challenges facing the company. It’s also important to consider qualitative aspects, such as the strength of the management team, the competitive environment, and the company’s strategic positioning. Ultimately, a successful turnaround and restructuring plan will involve setting clear objectives, devising a strategy to achieve those objectives, and then monitoring progress using relevant performance metrics.

What is Business Restructuring Financing?

Restructuring financing is a business loan that leverages your assets to provide a positive solution to significantly modify debt and reorganize the financial structure of your company. Often, such a restructuring will coincide with the implementation of a strategic plan and turnaround financing.

How does Restructuring Finance Work?

The restructuring financing process requires your company to establish a solid financial plan to maximize efficiency and improve the company bottom line. A restructuring loan finances this plan and facilitates the recovery of your company’s financial situation.

How to choose the Best Restructuring Finance Companies?

The best lender to provide restructuring finance is one that can advise you from beginning to end and has good contacts throughout the turnaround financing and restructuring industry. eCapital has more than forty years of experience financing business restructuring and many senior management team members who are involved in the Turnaround Management Association (TMA). Our experience and expertise can to help you with restructuring financing and getting your business on the right track. Call us to learn how you can benefit from restructuring financing.

How does Turnaround Financing work?

Turnaround financing relies on a strategic plan—typically laid out by a turnaround advisor, interim CEO, or another third party—for your business, which outlines a route to profitability. With a viable turnaround strategy, you can earn the support of potential lenders by demonstrating that your company can be profitable.

When should I apply for Business Restructuring or Turnaround Financing?

Business restructuring or turnaround financing is typically sought when a company is facing financial distress or when it needs to make significant changes to its business model or operations. Here are a few scenarios when you might consider applying for such financing:

  1. Declining Sales: If your business is experiencing a sustained decrease in sales, this can indicate a need for restructuring. Turnaround financing can provide the funds needed to revamp your product or service offerings, invest in marketing, or explore new markets.
  2. Cash Flow Problems: If your company is struggling to meet its financial obligations, such as payroll, rent, or debt payments, turnaround financing can provide the necessary liquidity to keep the business operating while you address underlying issues.
  3. Major Operational Changes: If your business needs to undergo significant operational changes, such as closing or opening locations, investing in new equipment, or pivoting to a different business model, restructuring financing can help fund these transitions.
  4. Debt Obligations: If your business is burdened by high-interest debt or has a debt structure that’s unsustainable, restructuring financing can be used to consolidate debts or negotiate better repayment terms.
  5. Legal Issues: If your business is facing legal challenges or litigation that could potentially impact its financial stability, you may want to consider turnaround financing.
  6. Economic Downturns: During tough economic times, businesses may struggle to stay afloat. Turnaround financing can provide the necessary capital to weather these storms.

How to choose the best turnaround financing companies?

Top turnaround financing companies have a knowledgeable team with extensive experience working through turnaround financing and restructuring financing with many companies just like yours. Working with such a lender will provide you and your company’s professionals with a critical resource in completing your turnaround financing. With forty years of experience in turnaround financing and many members of our senior management team involved in the Turnaround Management Association (TMA), eCapital has the experience and expertise needed to help you with your turnaround financing and restructuring. Call us to learn how you can benefit from turnaround financing.

What is Exit Financing?

Exit financing, also known as exit funding or an exit loan, is a form of financing that helps companies transition out of bankruptcy. This type of financing is designed to provide the necessary funds for a company to continue operations and fulfill its post-bankruptcy business plan once it has successfully restructured and is preparing to exit bankruptcy protection.

This type of loan is usually provided by commercial banks or other lending institutions. The loan is typically secured by the company’s assets and is used to pay off creditors, fund ongoing operations, and invest in the business to promote its recovery and growth.

Exit financing is a significant step in a company’s restructuring process because it often signifies that the company is moving towards financial health and stability. It also provides assurance to creditors, suppliers, and employees about the company’s viability post-bankruptcy.

Let's Talk

Get started today.