The absence of financial analyst in small and medium companies the process of restructuring the debt is completely absent and the decisions are made on basic calculation of Time, Expense and sales.

The crucial aspect of understanding the time with a due process and creating of cycle, which will help in debt restructuring, is completely neglected and the process is done with own assumptions and ego factors.

The first common problem or mistake done is to hide or to accept that the company is in loss and needs capital infusement. The non-payment of loans or creating the NPA (Non Performing Assets) is never taken into consideration.

The reason for increase in debt is never looked at and the factors that led to increase in debt is never understood with proper due diligence. The simple math’s is calculated that I will be getting a big payment for which I have raised invoice once I get that I will have every debt cleared out.

The time factor that will be consumed for getting the payment is never looked at and at same time instead of reducing the expenses increasing orders and taking loans for executing orders do the other way and thinking that once I get that big payment everything will be sorted.

The major assumption, which prevents a company from restructuring of debt being, one step back is equal to two steps forward this is never thought, the company increases sales and purchases raw material for delivering the orders on credit or on loans which left un-cleared for 45 days will cause much more problem of increase in loan and making debt structuring difficult.

When company is undergoing the process of debt restructuring it’s not about increasing sales it’s all about time factor to clear the loan and ensure the payment realization with time factor.