In today’s fast-moving financial climate, managing business debt is more complex than ever. Between rising interest rates, tightening credit conditions and shifting market dynamics, many companies are feeling the pressure. Yet a large number delay seeking support until problems become critical.
This article explores when businesses should consider professional debt advisory services, with a focus on recognising early warning signs and taking action before financial risks escalate. Whether you are a business owner, CFO or finance director managing funding or refinancing decisions, understanding the role of debt advisory can help protect and enhance your company’s financial position.
What Is Debt Advisory Support?
Debt advisory is a strategic service that helps businesses optimise their capital structure, manage lender relationships and secure funding that supports long-term goals. Unlike a traditional broker who merely facilitates loan placement, or an accountant who focuses on compliance, a debt advisor provides independent and holistic funding advice tailored to business strategy.
Debt advisory includes:
- Evaluating current funding arrangements
- Identifying inefficiencies in debt structures
- Advising on refinancing options
- Sourcing and negotiating with lenders
- Managing risks associated with debt covenants and cash flow
- Supporting businesses during expansion, restructuring or financial stress
You can learn more about Aberdeen Capital’s advisory capabilities on the Debt Advisory service page.
Independent debt advisors like Aberdeen Capital act solely in the interest of the business, providing access to a broader range of lenders, improved terms and strategic advice that enhances financial resilience.
Key Warning Signs Your Business Needs Debt Advisory
The need for debt advisory support often emerges gradually. Businesses that monitor their financial signals early are far better positioned to restructure or renegotiate effectively. The following are five key warning signs that suggest it may be time to seek professional assistance.
Rising Interest Costs
Many businesses have felt the impact of interest rate increases over recent years. Even a small rise in variable lending rates can have a disproportionate effect on businesses with high levels of debt or tight margins. When repayments become more expensive and reduce available working capital, it is often a signal that the current debt structure is no longer optimal.
Debt advisory professionals help businesses assess whether refinancing or restructuring could secure more favourable terms. This might include moving from variable to fixed rates, extending loan terms or reducing security requirements.
Multiple Lenders and Complex Funding Arrangements
Over time, businesses can accumulate several different loan products from different providers, including term loans, trade finance, overdrafts or equipment finance. While these arrangements might have suited short-term needs, they often lack coordination and create complexity.
When lenders operate under different terms, conditions and covenant requirements, the risk of breach or inefficiency increases. A debt advisor can consolidate or restructure facilities to simplify the funding environment and ensure alignment with the business’s objectives.
Cash Flow Strain or Liquidity Pressures
If your business regularly experiences tight cash flow—especially when income appears stable—it may suggest that current loan repayments or capital requirements are poorly matched to cash flow cycles. This can restrict operational flexibility, delay payments to suppliers or even lead to missed payroll.
By working with an advisor, businesses can restructure repayments to better match inflows, unlock working capital or explore refinancing options that improve liquidity. Learn how debt restructuring supports this on our Refinance Business Loan page.
Covenant Breaches or Lender Pressure
Most corporate loans include financial covenants that must be maintained. These may include interest coverage ratios, leverage ratios or restrictions on dividends. A breach—even if temporary—can lead to lender action, such as increased interest, security enforcement or demands for early repayment.
If lenders begin requesting additional information, applying pressure or tightening terms, this is a clear sign that your business should seek debt advisory support. Advisors can manage lender communications, negotiate waivers and restructure terms before escalation occurs.
Difficulty Securing Additional Funding
When your business needs growth funding, acquisitions or capital investments, access to credit should support these initiatives. However, some businesses find that existing debt limits new lending options or attracts restrictive terms. This might suggest that your capital structure is not appropriately balanced.
Debt advisors support businesses to prepare funding proposals, approach the right lenders and present financials in a way that maximises creditworthiness. They help ensure you are not missing out on opportunities due to internal funding limitations.
How Debt Advisory Helps Prevent Financial Stress
While some may assume debt advisory is only relevant in financial distress, its greatest value is in prevention. A well-managed capital structure ensures your debt supports operations and growth, not restricts them.
Refinancing for Cost and Flexibility
Advisors assess your current debt, explore the market and present refinancing options that align with your business model. They can help secure lower rates, longer terms or more appropriate loan features such as redraw facilities or principal repayment holidays.
This is especially important when preparing for investment, managing cash flow volatility or adjusting to changes in revenue.
Debt Restructuring and Consolidation
Where multiple facilities or short-term funding have become burdensome, a debt advisor can develop a strategy to consolidate debt into fewer, more manageable facilities. This often results in better visibility, reduced administrative load and improved negotiation power with lenders.
Strengthening Lender Relationships
Engaging an independent advisor often improves credibility with lenders. Advisors understand how to package and position financial information to meet lender expectations, reduce perceived risk and build trust. This facilitates stronger negotiation outcomes and reduces the likelihood of unfavourable loan conditions.
Explore more on our Refinance Business Loan service for details on how we support this process.
Risk Management and Debt Strategy
Debt is not just a funding mechanism—it is also a source of financial risk. When poorly structured, it can increase exposure to interest rate fluctuations, rollover risk or asset encumbrance. A reactive approach to funding often leads to last-minute borrowing at higher costs.
Debt advisory integrates with broader risk management, ensuring your funding supports stability and growth rather than creating vulnerability.
Managing Financial Governance
Lenders increasingly require regular reporting, forecasting and covenant monitoring. Many businesses lack internal resources to manage this proactively. Debt advisors introduce governance tools that improve reporting, build confidence and keep lender relationships healthy.
This approach is especially valuable for businesses seeking to grow, raise capital or protect themselves from external shocks.
Learn more about how we support businesses through Risk Management Consultants.
When to Engage an Independent Debt Advisor
Timing is everything when it comes to managing funding strategy. The earlier a business engages debt advisory support, the broader the options available.
Consider seeking support in the following scenarios:
Prior to Loan Maturity or Refinancing
Starting a review six to twelve months before facility expiry ensures you are not forced into rushed decisions. It allows time to compare lender offers, prepare financials and choose structures that benefit long-term goals.
During Expansion or Acquisitions
Major investments require carefully structured capital. A debt advisor helps balance equity and debt, assess risks and present funding plans to lenders or investors that instil confidence.
During Cash Flow Volatility
Short-term issues do not need to become long-term problems. When forecasts suggest tighter cash flow ahead, early restructuring can restore breathing room and preserve credit standing.
As Part of Growth or Capital Strategy
Businesses planning to scale should proactively review whether current funding aligns with future strategy. Debt advisory helps avoid bottlenecks and ensures funding enables rather than restricts progress.
How Aberdeen Capital Supports Businesses
Aberdeen Capital is a leading independent advisor in Australia, providing tailored debt and capital structuring advice to mid-market and growing businesses. Our approach is grounded in financial clarity, lender independence and long-term value creation.
Access to Competitive Lenders
As an independent advisor, we are not aligned with any lender. This means our clients gain access to a full spectrum of bank and non-bank funders. We assess each option based on risk, cost, structure and suitability—not commissions or quotas.
Strategic Capital Structuring
Through our Capital Management Solutions, we help businesses structure capital in a way that aligns with goals, liquidity needs and investment horizons. Our solutions are tailored, not templated.
Ongoing Advisory Support
We work with clients on an ongoing basis to adjust funding as business conditions evolve. Whether responding to interest rate changes, lender feedback or strategic shifts, we ensure your capital position remains fit for purpose.
If your business is facing debt complexity or funding constraints, speak to a debt advisor to arrange a confidential review.
Frequently Asked Questions
What are the signs that a business needs debt advisory support?
Common indicators include rising interest costs, difficulty managing repayments, lender covenant breaches and restricted access to new funding.
Is debt advisory only for distressed businesses?
No. Debt advisory is most effective when used proactively—especially during refinancing, expansion or when capital strategy becomes more complex.
How does debt advisory help with refinancing?
Advisors assess current loans, identify better market options, structure debt to suit your cash flow and negotiate directly with lenders to secure favourable terms.
Can SMEs benefit from debt advisory?
Absolutely. Many SMEs do not have dedicated treasury teams, so professional debt advisory adds immediate value through lender access, capital clarity and risk management.
Can Aberdeen Capital help review my debt position?
Yes. We offer independent reviews of existing facilities and capital strategies, with recommendations tailored to your business’s financial goals.
