Liquidity Early Warning Indicators: Eight Signals
Eight early warning signals of a cash squeeze, how to measure them, a monitoring routine and the loss-of-capital threshold in Turkish company…
OUR SERVICES
Financial Restructuring Reshape your debt around a sustainable plan
We analyse your debt structure, liquidity and debt service capacity and prepare realistic restructuring scenarios so you are financially prepared for discussions with lenders.
What is financial restructuring?
Financial restructuring is the analysis and planning carried out when debt payments can no longer be — or may soon not be — met from the cash the business generates. Its aim is to align the maturity, interest and collateral structure of debt with the company’s ability to pay.
Prime Numeris sets out the company’s financial position, builds the debt inventory and debt service schedule, measures repayment capacity with a 13-week cash flow and medium-term projections, and prepares the financial analysis pack for lender discussions.
Who is it for?
- Companies struggling with debt payments Businesses finding it hard to meet loan instalments from operating cash flow.
- Companies with heavy short-term debt Businesses that funded long-term spending (plant, machinery, capacity) with short-term loans.
- Companies facing covenant or limit pressure Businesses struggling to meet bank conditions or seeing credit lines reduced.
- Companies preparing for lender meetings Management teams that want to support a restructuring request with financial analysis.
- Typical sectors Manufacturing, construction and real estate, energy, trading, tourism and capital-intensive businesses.
COMMON CHALLENGES
How the need for restructuring arises
Cash does not cover debt service
Operating cash falls short of principal and interest; new loans are used to repay old ones.
Maturity mismatch
Long-term assets are funded with short-term debt, raising refinancing risk.
No full picture of debt
Facilities, collateral and maturities across banks are not tracked in one place.
No analysis ready for lenders
A restructuring request cannot be backed by projections showing repayment capacity.
Rising interest burden
Floating-rate and short-term debt push financing costs up quickly.
SCOPE OF SERVICE
What our financial restructuring work covers
Financial position analysis
Assessing the balance sheet, profitability, working capital and cash generation.
Debt inventory and bank facilities
Listing all financial debt by lender, type, maturity, interest and collateral.
Maturity and interest profile
Analysing the maturity ladder, interest type and cost of funding.
13-week cash flow
Weekly tracking of short-term liquidity so shortfalls are visible in advance.
Medium-term projections
Three- to five-year projections of revenue, cost, capex and cash.
DSCR analysis
Calculating period-by-period coverage of debt service by available cash.
Restructuring scenarios
Comparing options such as maturity extension, grace periods and refinancing.
Debt capacity
Assessing the level of debt the company can carry sustainably.
Financial preparation for lender meetings
A financial analysis pack and presentation support for discussions.
Is this scope right for your business?
In a short initial call we listen to your current situation and expectations, and define the right scope for your business together.
What it brings to your business
One view of all debt
Management sees the full debt burden, maturities and cost in one place.
A realistic repayment plan
The proposed structure rests on the company’s capacity to generate cash.
Prepared for lenders
Requests are backed by projections and DSCR analysis.
A controlled process
Short-term liquidity is tracked weekly and the process follows a plan.
What you receive
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Debt inventory
A list of all financial debt with lender, type, maturity, interest, collateral and covenant details.
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Debt service schedule
A calendar of principal and interest payments by period.
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Restructuring model
A model calculating the cash and DSCR impact of alternative maturity and repayment structures.
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DSCR analyses
Period-by-period debt service coverage for the current structure and each scenario.
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Liquidity scenarios
13-week and medium-term Base / Stress scenarios.
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Lender-ready financial analysis pack
A pack summarising the financial position, projections and the proposed structure.
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Financial improvement roadmap
A plan of cash generation, cost and working capital actions.
How we work
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01
Rapid financial diagnosis
The cash position, debt structure and short-term risks are set out within the first two to three weeks.
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02
Debt inventory and liquidity
The debt inventory, debt service schedule and 13-week cash flow are prepared.
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03
Projections and capacity
Medium-term projections, DSCR and debt capacity analyses are carried out.
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04
Scenarios and plan
Alternative restructuring scenarios are compared and a financial improvement plan is drawn up.
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05
Preparation for lenders and monitoring
The financial analysis pack is prepared; after agreement, compliance with the repayment plan is monitored.
Frequently asked questions
Can you guarantee that lenders will accept the restructuring?
No. Approval depends on each lender’s own credit assessment. We make sure your request is realistic and financially well supported.
What is DSCR and why does it matter?
The debt service coverage ratio shows how far principal and interest due in a period are covered by cash available for debt service. A ratio below 1.0x indicates that debt service is not covered by operating cash. The exact definition depends on the loan agreement.
How is this different from Cash Flow Management?
Cash flow management focuses on cash discipline in the normal course of business. Restructuring covers changing the debt structure and preparing for lender discussions.
How is it different from a concordat?
Financial restructuring is the financial preparation for reorganising debt through negotiation with financial institutions. A concordat (konkordato) is a court-supervised process under the Turkish Enforcement and Bankruptcy Law; in that case the work falls under Concordat Advisory.
What documents do we take to the bank?
A financial pack is prepared: financial position analysis, debt inventory and credit structure, a 13-week cash flow, medium-term projections, DSCR analysis and restructuring scenarios. Any additional documents the lender may request are confirmed before the meeting.
Request a financial restructuring consultation.
Tell us briefly about your debt structure — number of lenders, total debt, upcoming maturities — and your main concern; we will discuss first steps together. Your information is treated confidentially.
- Complimentary initial consultation
- Needs assessment
- Tailored approach
- advisory@primenumeris.com
- +90 553 012 13 27
- Bursa, Türkiye
Meeting request
Briefly describe your situation and we will contact you to arrange a suitable time to talk.