Restructuring means changing the terms of an existing loan so it fits a company's circumstances more comfortably. Unlike refinancing, which replaces a facility with a new one, restructuring adjusts the agreement already in place.
What can change
Restructuring can take different forms depending on the situation and what the lender is able to offer. The aim is usually to make repayments more manageable while still clearing the debt.
- Adjusting the repayment pattern or the length of the remaining term.
- Temporarily easing repayments during a difficult period.
- Changing how the balance is paid down going forward.
How it is arranged
Restructuring is always agreed between borrower and lender, never something that happens by simply paying differently. Any change is confirmed in writing, and it is worth understanding the effect on the total cost before agreeing.
Credicorp lends only to UK limited companies and LLPs for business purposes and is an exempt business lender, so the Financial Ombudsman Service and FSCS do not apply. If your company's circumstances have changed, contact our team early to discuss whether a restructure of your facility is possible.
See also: What is refinancing?, What is a tariff of charges?, Can my repayments be restructured?.