The starting point
Evaluate the complete obligation, not the marketing label. Restructuring is not debt erasure or automatic relief; consolidation is not necessarily cheaper and may replace several positions with a larger, longer, or differently secured obligation.
A smaller withdrawal can hide a larger problem
Do not compare only the daily payment. Longer repayment, additional fees, new guarantees, or unpaid old positions can change the risk substantially. NGG neither offers consolidation financing nor guarantees creditor concessions. Review the complete written obligation before committing.
| Comparison point | Restructuring of existing obligations | Consolidation using new financing |
|---|---|---|
| Source of money | Usually existing operating cash; a proposal may require other resources. | New financing funds intended payoffs; deductions reduce usable proceeds. |
| New obligation | Existing terms may change; identify provider fees and any added obligation. | A new financing obligation replaces only the positions actually paid and closed. |
| Payment schedule | Changes require documented creditor agreement where applicable. | A new schedule may be lower, longer, or differently timed; old debits may overlap. |
| Total cost | Depends on accepted terms, remaining balances, and service fees. | Depends on new repayment terms, payoff amounts, deductions, and remaining debt. |
| Collateral and guarantees | Existing protections may remain unless explicitly changed. | New security or guarantees may be required; old releases need confirmation. |
| Principal risks | Creditors may decline; collections and existing deadlines may continue. | Financing may be unavailable or unaffordable; incomplete payoffs can leave a stack. |
Establish what each proposal actually does
Restructuring may seek different timing, remittances, or other terms from existing creditors. Acceptance is not automatic. Identify covered positions, obligations continuing unchanged, and independent-provider fees.
Consolidation typically introduces new financing to pay existing balances, but may not close every position. Require a written list of payoffs, the new obligation, and old balances or withdrawals remaining.
Trace the money and any new obligation
Subtract payoffs and deductions from gross funding to find usable cash. Ask who receives payoff funds, how balances are confirmed, and how each old position’s closure is documented.
For restructuring, identify whether the proposal uses operating cash, requires a lump sum, or depends on outside funding. Unapproved financing is not available cash. NGG does not make loans or approve credit.
Compare weekly pressure and total outflow
Compare proposals on the same operating forecast, retaining actual debit dates. Show deposits, irregular installments, provider fees, and large final payments separately; an average can conceal a shortfall.
Add scheduled outflow through completion, including fees and excluded obligations. Longer repayment may lower current pressure while increasing total cost. Identify fixed, contingent, and uncertain costs rather than treating estimates as guarantees.
Review security, guarantees, and failure scenarios
Compare existing and proposed collateral pledges and personal guarantees. Do not assume refinancing removes old filings or modified payments release a guarantee. Refer legal questions to qualified counsel.
Test slower revenue, delayed receipts, creditor rejection, and overlapping old and new debits. Identify dependencies and consequences of nonperformance. Neither option repairs an ongoing operating loss simply by changing payments.
Choose only after the terms are documented
Request written payment dates, total obligations, fees, payoff handling, security, guarantees, and unresolved items. Compare these with the forecast before signing; financing and creditor participation are not assured.
NGG reviews debt and cash flow, then connects owners with independent servicing companies handling negotiations, creditor coordination, and all fulfillment. The initial 30-minute consultation is free; separate engagements may have fees. NGG provides no legal, tax, or accounting advice.
What to prepare for a review
- Current agreements, balances, payoff quotes, and withdrawal schedules
- Written restructuring and financing proposals with fee disclosures
- Gross funding, deductions, net proceeds, and full repayment schedules
- Existing and proposed collateral documents and personal guarantees
- Operating cash forecast with a slower-revenue scenario