Debt Advisory
Looking to manage or secure debt? We offer expert advice on structuring and optimising debt solutions, helping you balance costs and maintain financial health.
Debt advisory is a specialised service that guides your business through complex financial challenges by providing strategic insights and solutions to optimise debt structures. Beyond finance assistance, tailored debt counsel concentrates on capital optimisation, debt restructuring, and efficient credit management to improve financial stability and corporate liquidity. Through a thorough comprehension of credit ratings, debt instruments, and regulatory compliance, debt advising assists businesses in understanding complex financial environments, minimising financial risks and matching capital structures with growth goals. This service is particularly important for businesses with significant levels of leverage, intricate funding requirements, or liquidity issues since professional advice can help manage default risks and prevent any debt covenant violations.
By using precise restructuring techniques, optimising credit ratings, and following legal frameworks such as the Insolvency and Bankruptcy Code (IBC), Reserve Bank of India (RBI) guidelines, or particular regional regulatory standards, debt advisory may greatly enhance long-term financial resilience. Debt experts collaborate closely with their clients to perform thorough financial analysis, examine existing debt, and bargain with lenders for advantageous conditions, such as longer payback periods and interest rate modifications. Organisations can stabilise their financial status, improve their creditworthiness, and lay the groundwork for future expansion by using debt advice services to handle distressed debt situations, optimise debt-to-equity ratios, and reduce operational and legal risks.
Our Services
Our debt consulting services are intended to offer businesses comprehensive assistance throughout the debt management process. We provide specialised solutions that handle urgent needs while setting up for long-term financial success by getting to know each client's particular financial structure and objectives. An outline of our primary services, each designed to maximise debt, improve financial resilience, and support strategic business goals, may be found below.
| Service | Description |
|---|---|
Debt Structuring & Restructuring |
We analyse your current debt portfolio to develop customised structuring or restructuring strategies that align with your financial objectives. This includes consolidating debts, negotiating terms, and optimising the debt-to-equity ratio for increased stability and liquidity. |
Capital Optimisation |
Through precise capital analysis, we help balance debt and equity to maximise financial health and support growth goals. Our team assesses cash flows, evaluates funding sources, and advises on optimal capital allocation to enhance corporate valuation and improve liquidity. |
Credit Rating Enhancement |
Our experts guide you through strategies to improve your credit rating by aligning financial practices with the expectations of major rating agencies. We provide insights on debt metrics, leverage ratios, and cash flow analysis to strengthen your credit profile and access better financing. |
Distressed Debt Solutions |
For organisations experiencing financial distress, we offer specialised advisory to restructure obligations, negotiate with creditors, and explore options such as debt-for-equity swaps. Our approach is geared toward restoring solvency and positioning for long-term recovery. |
Mergers & Acquisitions Financing |
We provide tailored debt financing solutions for mergers, acquisitions, and buyouts, ensuring seamless transitions and stable financial structures post-transaction. This includes evaluating financing options, negotiating terms, and aligning capital with strategic objectives. |
Why Choose Benchmark
Selecting the best debt advice partner can be essential to both strategic expansion and financial stability. With our extensive knowledge in debt restructuring, compliance, and credit management, Benchmark is the best option for companies dealing with challenging financial circumstances. Benchmark guarantees that every solution is both strategic and compliant thanks to a staff of experts who are adept at utilising industry best practices and legal frameworks. Our data-driven, customised, and long-term financial resilience-focused approach enables businesses to maximise loan arrangements while lowering risks.
- Proven expertise in debt restructuring and refinancing
- Strong negotiation track record with major financial institutions
- In-depth knowledge of regulatory frameworks such as the IBC and RBI guidelines
- Customised debt optimisation strategies to enhance liquidity and credit health
- Strategic focus on mitigating default risks and strengthening creditworthiness
- Continuous monitoring and compliance with debt covenants and legal obligations
- Transparent, client-focused communication throughout the advisory process
Documents Required
To offer customised and successful debt advising services, clients must give certain papers that allow for a comprehensive evaluation of their financial situation, compliance level, and strategic objectives. These records give our staff a comprehensive understanding of current debt arrangements, legal compliance, and anticipated financial expansion, guaranteeing that our advice properly matches your company's requirements.
| Documents | Description |
|---|---|
| Audited Financial Statements | Includes balance sheets, income statements, and cash flow statements from the last three fiscal years. These documents provide a complete view of your financial health and debt capacity, helping in evaluating liquidity and solvency metrics. |
| Debt Agreements & Loan Covenants | Current debt agreements, loan contracts, and details of any covenants imposed by lenders. These records help us assess repayment obligations, terms, and any restrictions on cash flow or capital expenditure. |
| Corporate Governance Certificates | Board resolutions, articles of association, and shareholder agreements that impact decision-making authority related to debt. These documents clarify authorisation requirements for restructuring or new financing. |
| Compliance Certificates | Certificates demonstrating adherence to regulatory guidelines and debt covenants. These documents are critical for maintaining favourable credit terms and ensuring compliance with legal frameworks like the IBC and RBI guidelines. |
| Business Plan and Financial Projections | A forward-looking document including revenue forecasts, planned capital expenditures, and funding needs over the next 3-5 years. This helps in evaluating the sustainability of debt and future capital requirements. |
| Tax Filings and Audit Reports | Annual tax filings, GST returns, and audit reports relevant to financial solvency and compliance. These documents provide insights into tax liabilities and fiscal health, essential for assessing risk in debt restructuring. |
| Legal Documentation on Liabilities | Any legal proceedings, disputes, or pending obligations that may impact debt obligations. This includes liens, encumbrances, or any court orders affecting assets or cash flow stability. |
Our Process
Starting with a clear assessment of your debt needs, we then evaluate options, structure optimally, and secure competitive terms for you. These are the precise steps we take:
- Step 1: Initial Assessment of Debt Requirements and Objectives
- Step 2: Analyse Current Debt Structure and Cost of Capital
- Step 3: Debt Capacity and Repayment Ability Analysis
- Step 4: Identify and Evaluate Potential Lenders or Financing Options
- Step 5: Develop Debt Structuring and Optimisation Strategy
- Step 6: Negotiate Terms and Secure Favourable Financing Arrangements
- Step 7: Documentation and Compliance Review
- Step 8: Ongoing Debt Monitoring and Performance Evaluation
Debt Health Assessment Checklist
Maintaining financial stability and making wise debt management decisions depend on knowing how much debt your company has. Utilise this checklist to assess important debt health indicators, pinpoint areas that need work, and decide whether hiring a professional debt advisor will be helpful.
- Current debt-to-equity ratio
- Interest coverage ratio
- Compliance with debt covenants
- Liquidity ratio (current assets vs. liabilities)
- Maturity profile of existing debt
- Cash flow adequacy for debt servicing
- Recent credit rating changes
- Consistency in meeting debt obligations
- Exposure to interest rate fluctuations
- Adherence to regulatory requirements (e.g., IBC, RBI guidelines)
- Provisions for potential debt restructuring
- Contingency plans for distressed debt situations
Key Financial Ratios Used in Debt Advisory
Financial ratios play an important role in debt advisory by providing you with insights into a company's financial health, creditworthiness, and ability to manage debt obligations. Below are the key financial ratios used in debt advisory:
- Debt-to-Equity Ratio (D/E Ratio) - This ratio measures the proportion of debt used to finance your company relative to shareholder equity.
- Interest Coverage Ratio - See through the company's ability to pay interest expenses from its earnings.
- Current Ratio - Helps in analysing short-term liquidity by comparing current assets to current liabilities.
- Quick Ratio (Acid-Test Ratio) - This ratio helps to see the company's state to cover short-term obligations without relying on inventory.
- Debt Service Coverage Ratio (DSCR) - Determines whether a company generates sufficient cash flow to cover debt repayments.
- Leverage Ratio - This ratio determines the extent of your company's financial obligations relative to its earnings.
- Fixed Charge Coverage Ratio (FCCR) - Assesses your company's ability to meet fixed financing obligations, including lease payments.
- Return on Capital Employed (ROCE) - Measures how efficiently your company is utilising its capital to generate profits.
- Operating Cash Flow to Debt Ratio - Evaluate the company's ability to generate cash flow to meet debt obligations.
How Debt Advisory Helps in Crisis Management
In case a business struggles with financial difficulties, then managing the debt properly becomes an issue for survival. In such cases, debt advisory services come in as a help to your company to deal with such challenges as cash flow shortages, high-interest burdens and repayment struggles. Hence by working with experts, your business can find ways to stabilise their finances, reduce risks, and avoid bankruptcy.
For instance, the International Monetary Fund reported that more than half of low-income developing countries are currently at high risk of debt distress, highlighting the widespread need for effective debt management strategies.
During this kind of financial crisis, debt advisors like us analyse your company's current situation and make proper suggestions such as renegotiating loan terms, extending repayment periods, or consolidating multiple debts. And we also help your business by helping you to improve its cash flow, cut unnecessary costs, and explore new funding options. Hence with proper guidance your company could recover its financial stability and move forwards with confidence.
Non-Compliance Issues
Non-compliance with debt agreements and regulatory standards can have serious consequences, affecting a company's financial stability, creditworthiness, and operational continuity. Here are key non-compliance issues that can pose risks to organisations:
- Breach of debt covenants
- Default on principal or interest payments
- Inadequate reporting to lenders and regulators
- Non-compliance with the Insolvency and Bankruptcy Code (IBC) provisions
- Failure to meet Reserve Bank of India (RBI) guidelines for financial institutions
- Lack of timely debt restructuring during financial distress
- Inaccurate or incomplete financial disclosures
- Over-leveraging without adequate capital buffer
- Ignoring credit rating downgrades and implications
- Non-adherence to statutory audit and compliance reporting
Conclusion
Strategic expansion and maintaining financial health depend on efficient debt management. You get professional assistance with managing intricate debt issues, maximising capital structure, and guaranteeing regulatory compliance with Benchmark's Debt Advisory Services. Our group is dedicated to providing your company with customised solutions that increase liquidity, lower risk, and enhance creditworthiness.
Get in Touch
Ready to transform your debt strategy? Contact us today to schedule a consultation and explore how our advisory can support your financial goals and secure a stronger, more resilient future.
FAQs
Is debt advisory only beneficial for companies in financial distress?
No, debt advisory is valuable for any organisation looking to optimise its capital structure, enhance credit ratings, or prepare for future growth, even if it's financially stable.
What is the difference between debt advisory and financial restructuring?
Debt advisory provides strategic guidance on managing and optimising an organisation's debt, while financial restructuring involves changing the structure of the organisation's debt and equity to improve its financial health.
Can debt advisory services help in securing better loan terms?
Yes, debt advisors negotiate with lenders to secure more favourable terms, such as reduced interest rates, extended repayment periods, or relaxed covenants, which can improve overall financial conditions.
How long does the debt advisory process typically take?
The duration depends on the complexity of the organisation's debt structure and the scope of advisory needed, but the process usually includes a thorough assessment, strategy development, negotiations, and implementation.
Is debt restructuring the same as bankruptcy?
No, debt restructuring is a proactive measure to reorganise debt obligations and improve financial health, whereas bankruptcy is a legal declaration of an organisation's inability to meet its debt obligations.