Restructuring debt: when rescheduling beats refinancing

Insights · 17.03.2026 · OS Capital Investments

When repayments outgrow cash flow, most borrowers reach for new debt. Often the better tool is a renegotiation of the old.

Refinancing replaces one facility with another — new lender, new pricing, new fees. Rescheduling keeps the facility but changes its shape: tenor, instalment profile, grace periods, sometimes security. For a business in temporary difficulty, rescheduling is usually faster, cheaper and less damaging to banking relationships.

What lenders actually want

Lenders rarely want the collateral; they want the loan performing again. A credible rescheduling proposal shows three things: why the difficulty is temporary, how the revised profile fits real cash flow, and what the borrower gives up in exchange — tighter reporting, additional security or a shorter overall tenor.

Preparing that case is detailed work: cash-flow reconstruction, collateral review and negotiation. It is work our licence covers expressly — loans and overdues rescheduling, credit review and collateral management sit alongside our advisory activities.

If repayments have started to slip, the strongest position is the one taken early, while options remain open on both sides of the table.

This article is general commentary. It is not investment advice, an offer, or a recommendation to buy or sell any asset. Speak to a licensed adviser about your own circumstances before acting.