First, very few "financial difficulties" that companies encounter are solely finance-based. Financed based issues are those that are the result of taking on too much debt. That usually involves having EBITDA (earnings before interest, taxes, depreciation and amortization) that can handle the debt service at the time the loan is originated but, due to the general economic environment, loss of a customer, drop in average sales volume, etc., the EBITDA can no longer cover the debt payments. Or the finance-based issue could be due to taking on improperly structured debt - debt with a balloon payment, high interest rates, escalating interest rates or payments, etc. The terms may have seemed fine at the time but seem ominous 1, 2, or 3 years later.
Pure finance-based issues are fairly easy to fix (assuming you communicate frankly and regularly with the financing entity/debt provider). Simply sit down with the entity providing the loan and negotiate a restructuring. Request extended terms (an increase from 5 years to 7 years, for example), a lower interest rate for a specified period of time (from a few months to the remainder of the term), or removal of the balloon, to name a few of the options. As long as the underlying fundamentals of the business are the same, the debt provider will generally be amenable to restructuring the loan.
That last statement is key. If the underlying fundamentals have changed, those are operational issues. If you lost a major customer and that customer comprised 20% of sales and 25% of profit, that's NOT a financing issue. Obviously, you may not be able to make your loan payments but you should have seen the issue in advance. That 20% customer has been that way for how long? Two years? Four years? You should have set up a plan to remove or decrease the risk of the loss of that one customer. Are your receivables taking 60 - 90 days to be paid? Has this been ongoing for years? Usually, it's not a new development. That would be a finance issue. Usually, companies, especially rapidly growing companies, allow accounts receivables to hang out there for months at a time - for years. Then, when they stop growing so rapidly and the new business can't cover the old receivables or vice versa, they experience an almost immediate cash shortage.
Another operational issue - poor customer service and high customer turnover. When business is expanding and new customers are continually coming on board, a business can handle the drop off. But when business drops off, poor service reaps a high net cost on the bottom line.
These are just a few of the myriad operational issues that affect a business and results in financial issues in downturns. If any of this sounds like you, coulda, woulda, shoulda. The past is the past. You can't change it. Don't keep beating yourself up. Just ask for help from those that can provide it. Your CFO or an interim CFO, your CPA firm, your board, your banker, a turnaround consultant. Act soon so you can take effective action and successfully turn around your business before it's too late.