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Running head: DEBT RESTRUCTURINGPros1. Consolidate existing debts- consider a case in which a business is paying back two or moreloans on a monthly basis, this will result to the business juggling around the various repaymentsthat can consume a lot of time and other resources . In this case, debt restructuring can helpreduce the number of monthly repayments you have to keep track. This can be achieved throughconsolidation of the payments into one.2. Enables a business to plan its finances more easily- it becomes more challenging to plan forthe available finances when a business is paying a number of debts, e.g. loans with differentinterest rates and terms, restructuring such debts into one loan allows a business to plan for itsfinances well and as well makes it easy to repay debts.3. Lower interest rates- One way through which debts can be restructured is throughconsolidat ...


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