Financial restructuring as a strategy for SME recovery: step by step.

Financial restructuring as a strategy for SME recovery: step-by-step

Financial restructuring is an essential instrument to ensure the viability and continuity of SMEs, especially in contexts of instability, loss of profitability, or difficulty accessing financing. More than a measure of last resort, it is a preventive and structural strategy that can restore balance, liquidity, and growth prospects to companies with potential.

At Yunit Consulting, we have accompanied dozens of restructuring processes with a positive impact on companies' financial health. In this article, we share a practical guide on how to conduct this process effectively.

When is financial restructuring necessary?

There are clear signs that should alert managers and entrepreneurs:

• Persistent drop in operating results
• Frequent delays in payments to suppliers
• Difficulty complying with tax or banking obligations
• Excessive indebtedness regarding cash generation capacity
• Lack of strategic vision or budget control

Step-by-step for effective financial restructuring

1. Complete financial diagnosis

Before acting, it is essential to understand the origin of the problem. This involves:

• Analysis of financial statements;
• Identification of areas with greater treasury pressure;
• Assessment of the degree of indebtedness and profitability.

2. Review of the cost structure

Eliminating inefficiencies and reviewing contracts and fixed expenses allows for the rapid release of liquidity. This stage requires strategic vision and, often, negotiation with suppliers.

3. Reformulation of the business plan

It is necessary to align the operation with the new financial reality. This may include:

• Resizing the team;
• Adjusting prices and margins;
• Redefining sales channels.

4. Debt renegotiation

Negotiating with banks and suppliers is crucial to:

• Reschedule payment deadlines;
• Reduce financial charges;
• Avoid legal proceedings or loss of credit.

5. Financial and budgetary planning

Reinforcing internal control, through the creation of a detailed monthly budget, treasury plans, and continuous monitoring of deviations, is indispensable to keep the company financially sustainable.

6. Implementation of performance indicators (KPIs)

Systematically tracking results allows for the rapid correction of deviations. Indicators such as EBITDA, average payment period, and immediate liquidity must be monitored regularly.

Success checklist for financial restructuring

• Clear diagnosis of the current situation
• Commitment from the management team
• Openness to change and negotiation
• Support from external specialists
• Continuous monitoring of the action plan

An SME with financial problems is still an SME with a future

Financial restructuring is not a sign of weakness — it is an act of responsible and result-oriented management. With the right support, it is possible to recover profitability, regain market confidence, and prepare the company for a new growth cycle.

If your company is going through a challenging time, talk to us.

At Yunit, we help SMEs transform financial challenges into sustained growth strategies.