Restructuring debt to restore cash flow

Juliana · Porto Alegre, RS

Illustrative case study with a fictional character and hypothetical amounts.

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Hands holding and reviewing balance sheets over a desk with a keyboard and stationery.

Capital soughtR$450,000

Planned own fundsR$50,000

Total budgetR$500,000

01 / The challenge

What needs to change.

A business has accumulated expensive debt with instalments due before customer receipts. It wants to reorganize timing and cost without hiding existing obligations. The project lists creditors, settlement balances, charges, collateral and discounts actually offered. A proposal makes sense when it improves the ability to meet the whole plan, rather than replacing one visible instalment with a longer and more expensive agreement.

compare total cost and timing before and after restructuring.

Capital is part of the plan. Before seeking funds, the owner organizes the problem, compares alternatives and identifies spending that can be delayed, reduced or met from own resources. The presentation should distinguish verified facts from execution assumptions.

02 / Use of funds

The budget,
line by line.

Each line connects to purpose and execution evidence.

Settlement of priority debtR$281,250

Settlement of second debtR$140,625

Documented restructuring costsR$15,625

Protected operating cashR$62,500

TotalR$500,000

Nominal example amounts. Actual costs, fees, taxes and contracting expenses need to be determined for a real transaction.

03 / Staged execution

Milestones before
the next step.

Hypothetical 12-week assessment schedule. Actual timing and conditions depend on the project.

01 · Weeks 1–4

Confirm balances with creditors

R$112,500

Portion of capital sought associated with this stage’s plan. Actual release depends on contracts, conditions and the financial provider.

02 · Weeks 5–8

Document restructuring terms

R$202,500

Portion of capital sought associated with this stage’s plan. Actual release depends on contracts, conditions and the financial provider.

03 · Weeks 9–12

Retain settlement receipts and monitor the new schedule

R$135,000

Portion of capital sought associated with this stage’s plan. Actual release depends on contracts, conditions and the financial provider.

04 / Instrument and rights

Capital has
clear corresponding rights.

Debt / loan

The example instrument is a structural assumption. Actual terms need identified parties, amount, currency, remuneration, term, costs, responsibilities, default events and exit conditions. Receivables require checks of existence, ownership, restrictions and prior assignment. Equity and conversion depend on corporate structure and required acts.

KEZS organizes technology and intermediation. It does not assign a score or decide whether an investor should accept this risk. Diligence is independent and capital may suffer partial or total loss. Applicable providers need to be identified before contracting.

What to verify.
What to monitor.

Documents

Contracts and current debt statements
Written settlement proposals
Post-restructuring cash forecast

Risks to discuss

Extending the term while greatly increasing total cost
Paying one creditor while excluding another
Assuming an unconfirmed discount

Metrics

Total cost of remaining obligations
Monthly cash committed to debt
Obligations settled with evidence

05 / The takeaway

More clarity to
build and assess.

The study shows how a need becomes a budget, stages and criteria. It does not demonstrate approval, completed funding or business results. A real transaction may require structural changes, further information and different terms. The method’s value lies in making questions visible before committing capital.

Integrity and traceability records help preserve versions and confirmed events. They do not replace verification of documents and financial confirmations. Participant privacy should be preserved even when a project presentation is public.

Questions to help
take the next step.

Understand what to prepare, compare and monitor.

What is the first step for this project?

Start by working to compare total cost and timing before and after restructuring. Connect the purpose to a budget and verifiable milestones before negotiating terms.

Which documents help assessment?

Contracts and current debt statements; Written settlement proposals; Post-restructuring cash forecast. Share only necessary information with authorized participants and verify the submitted version.

Which risks need attention here?

Extending the term while greatly increasing total cost; Paying one creditor while excluding another; Assuming an unconfirmed discount. Each funder performs their own assessment; KEZS provides no score or approval guarantee.

Can a newly opened business organize the project?

Yes. The model considers businesses of every size from their first day of registration. Limited history requires other evidence. A project does not guarantee approval or funding availability.

Can the project amount vary?

Planning examples range from R$2,000 to R$20 million. Budgets should reflect actual needs and available own funds. Terms and contributions depend on the transaction and participants.

How do I monitor capital use?

Agree on milestones, responsibilities, documents and metrics. Separate forecasts, available cash and confirmed financial events. Technology supports history without guaranteeing business outcomes or payment.