Medro Updates

Define the Business Decision Behind a Lower Payment

By Don McClain

By Don McClain | Founder & Principal, Medro Advisors. A proposed payment reduction should have a defined purpose in the owner’s wider plan. Identify whether it supports an operating reserve, a seasonal need or another documented priority. Compare the remaining payment schedule with the replacement term and separately paid costs, then test the plan without assuming revenue improves. Keep obligations that remain outside the transaction visible. A smaller payment can provide flexibility while extending the commitment. Bring the objective and unresolved tradeoffs into a coordinated capital review. Discuss your capital objective and unresolved tradeoff at https://medroadvisors.com/advisory/