Debt restructuring can have an impact on your business’s credit profile, particularly if the restructuring involves a formal arrangement, missed payments, or a write-down of debt. Lenders may flag the account internally, and credit reference agencies may record adverse information. However, the impact on a company’s credit rating is almost always less damaging than the alternative — allowing debts to spiral to the point of insolvency or legal action. For directors personally, the impact depends on whether personal guarantees are involved. It is worth discussing with your advisor how to manage communications with credit providers as part of any restructuring plan to minimise reputational damage.
