Hello,

I have a client I recently funding with 3 positions with a total balance of $1.9M

They’re currently paying daily and they’re struggling to make payroll.

Right now they’re trying to sell off some assets to pay off their debt but in the meantime they need to free up some cash flow mainly for payroll. They also have a decent amount of money on their AR but a handful of their biggest clients are outstanding.

They’re actively generating new business but still struggling at the moment and for the foreseeable future until they sell off some assets and start getting paid from their new contracts. Their main concern is making payroll.

Should I advise them to do a reverse consolidation to help them free up some cash flow for the time being and hope they sell some assets to cover their debt or should they attempt to reach out to lenders to see if they can modify terms or lower payments?