Debt Refinancing

Debt Consolidation in Ireland

Debt refinancing is a process in which existing business debts are replaced by a new financial arrangement, often with the same amount of debt carried forward. Also known as debt consolidation, a company may wish to refinance its existing debt if better terms are available from an alternate lender.

In Ireland debt refinancing has recently been a major issue because some commercial lenders such as Danske Bank and Bank of Scotland have pulled out of the Irish market which has forced companies to seek new financial arrangements.

The term “debt refinancing” should not be confused with debt restructuring; which is a process where a reduction in financial liabilities is sought – usually due to a company being unable to refinance its existing debt and deteriorating into financial distress.

The team at Friel Stafford have, for the past two decades, assisted businesses with debt consolidation in Ireland, and have developed deep relationships with Irish lenders during that time. We believe that we can provide expert advice about refinancing debts irrespective of the issues that your business may face.

The Benefits of Debt Consolidation

In certain circumstances there are significant advantages to debt consolidation in addition to getting better terms on a loan. Companies may wish to:

  • Reduce monthly repayment by extending the term of a loan,
  • Free up cash to take advantage of better deals from suppliers,
  • Amalgamate several financial liabilities into one loan to manage the debt more efficiently,
  • Alter or reduce risk by switching from a variable-rate loan to a fixed-rate loan (or vice versa).

However, before considering this course of action, companies should seek professional advice about refinancing debts to ensure that it is in the best interests of the business, and that any costs involved do not counteract the benefits of debt refinancing.

Planning the Refinancing of Existing Debt

In order for a debt refinancing proposal to be accepted, it has to be thoroughly prepared and expertly presented to the refinancing lender. At Friel Stafford, we would suggest that a comprehensive business review is conducted and a strong business plan compiled in order that the refinancing lender is assured that the business is sound and that they can clearly see the necessary security and ability to repay.

Although not always necessary to obtain the approval of a debt refinancing proposal, business reviews can often expose obstacles which may need to be removed before a company can benefit from debt consolidation in Ireland, or they may reveal resources which are currently under-deployed and which might assist the future profitability of a business.

Get Expert Advice about Refinancing Debts from Friel Stafford

Companies who are experiencing cash flow issues, but whose underlying business is strong, should consider debt refinancing when it is a viable option. Because of our relationships with financial institutions such as the BoI, AIB and Ulster Bank, we feel we are in the best position to offer advice about refinancing debts and to determine whether the refinance of existing debt is the best way forward in your company´s specific circumstances.

Therefore, you are invited to call the Friel Stafford advice line on 01 661 4066 for a confidential discussion with one of our expert team. Your call to us, and any advice we provide is without any obligation and, if it is not a convenient time to speak with us right now, please complete the contact form on this page and we will call you back at a more suitable time.

Inasmuch as there are many advantages to debt consolidation in Ireland, there are also many drawbacks. Make sure you experience only the benefits by calling Friel Stafford today.