| The present downturn has placed many businesses at | | | | a restructured mortgage. |
| a crossroads, with many finding that their loan | | | | It is necessary to consider the likelihood of near term |
| payments are no longer possible. Faced with such a | | | | improvements that may justify a restructuring of your |
| predicament it is normal to look for solutions. Walking | | | | mortgage. One area to assess is the expected |
| away is more easily said than done, and typically to be | | | | improvement in the business environment. This |
| avoided at all costs. Businesses throughout the world | | | | conclusion has to be arrived at based on neither |
| are in the doldrums and an escape route can present | | | | personal feelings nor intuition, but rather grounded in |
| itself through commercial mortgage restructuring. This | | | | authentic studies by recognized experts. Another |
| is a targeted exercise aimed at saving your business | | | | factor to evaluate is whether you have recently won |
| based on the consideration of a number of | | | | new contracts that can realistically be expected to |
| parameters. It has to be undertaken mathematically | | | | generate more profit in a short period of time. |
| based on the principles of disaster management. If you | | | | Commercial mortgage lenders run their businesses |
| are looking for a quick fix solution to remedy a long | | | | solely by the numbers, and the process to determine |
| term problem, you are inviting more serious trouble in | | | | whether or not your mortgage can be restructured will |
| the future. | | | | be exclusively based on the principles of commerce. |
| When faced with a crisis in your business, it is | | | | You should expect to have your debt service |
| imperative to keep your cool and weigh all of the | | | | coverage ratio, or DSCR, put under the microscope. |
| options at your disposal. You must identify the root | | | | This metric assesses whether the anticipated cash |
| cause of the problem, and you must be convinced that | | | | flow of your enterprise is adequate to service the |
| restructuring your commercial mortgage will salvage | | | | payments of your restructured loan after you meet all |
| your business. In other words, you have to | | | | of your normal operating expenses. |
| dispassionately weigh the advantages and | | | | Many people are unable to manage a crisis in their |
| disadvantages of seeking a commercial mortgage | | | | business. The increased stress of cash flow problems |
| restructuring. | | | | due to a downturn in your business, combined with a |
| Like most loans, commercial mortgages have to be | | | | lack of strategies to overcome them, can place even |
| serviced regularly at agreed upon intervals and | | | | a seasoned business professional in a precarious |
| milestones. If you cannot do so due to lack of | | | | position. It is wise in these trying times to seek the help |
| adequate cash flow, it is essential to determine the | | | | of a financial professional who is experienced in |
| reason for the shortcoming. Will the increase in capital | | | | working through debt related issues. He will be able to |
| available after your commercial mortgage is | | | | look at your problems in an impartial way and offer |
| restructured lead to a realistic expectation of adequate | | | | you guidance on seeking the right path forward. |
| future cash flow? If so, then there is sense in pursuing | | | | |