Mounting debt is one of the first signs of financial distress for many businesses. However, with the right approach, debt doesn’t have to lead to insolvency. Debt restructuring offers a path to survival by negotiating better terms with creditors, including ZIMRA, banks, NSSA, and suppliers.
What is Debt Restructuring?
Debt restructuring involves altering the terms of existing debts to make repayment manageable. It might include:
- Extending payment deadlines
- Reducing interest rates
- Writing off penalties
- Consolidating debts into a new loan
Debt restructuring is not bankruptcy. It is a negotiated agreement that benefits both the debtor and creditors.
Key Organisations to Engage
- Zimbabwe Revenue Authority (ZIMRA) – regarding tax arrears
- National Social Security Authority (NSSA) – for outstanding contributions
- Commercial Banks – for business loans and overdrafts
- Suppliers and Service Providers – for trade debts
More information: ZIMRA Payment Plans
How RPBS Assists
At RPBS, we guide companies through structured creditor negotiations.
We help to:
- Prioritise which debts to restructure first
- Prepare convincing restructuring proposals
- Manage communication and documentation
- Protect company assets during negotiations
Our aim is to achieve the best terms possible while maintaining creditor relationships.
Tips for Successful Debt Negotiation
- Be proactive. Approach creditors before court action starts.
- Be honest. Clearly present your financial position.
- Offer realistic proposals. Don’t promise what you can’t deliver.
- Work with experienced advisors. Professionals like RPBS improve negotiation outcomes.
Conclusion
Debt doesn’t have to be a death sentence for your business. With professional help and a well-planned strategy, your company can restructure its obligations and survive.
Contact RPBS for debt restructuring advice tailored to your situation.