Over the past two decades, James Martin, founder and managing partner with ACM Capital Partners in Miami, has helped about 45 businesses restructure. For example, Martin helped a $100 million aviation firm that began losing money after the Sept. 11 terrorist attacks. Over the course of six years, Martin helped rework the firm’s debt and operations, setting it on a path for success. In fact, the company grew from 400 to 750 employees before it was sold to two public companies. Similarly, in 2008, Martin worked with a firm in the automotive industry to restructure its debt and close one of four plants in North America. “We got it right-sized for the turnaround in the industry,” he says.

Through his experience helping to secure $800-some million in both bank lending and alternative financing such as funding from private equity firms, equipment lenders and real estate investors, Martin has found that certain steps are critical to success.

1. Bring in outside help. Sure, Martin has an interest in telling companies to bring in outside experts—after all, that’s what he is. However, his argument is solid. Often, CFOs at mid-sized firms are pulled in numerous directions, particularly as their business goes through a rough patch. “They may do accounting entries or deal with vendors,” Martin says. “They’re dealing with myriad issues that have nothing to do with balance sheet restructuring.” In addition, even the most seasoned finance professionals often can’t help but feel the heat as their company’s bank starts to ratchet up the pressure by, say, accelerating the maturity of any loans outstanding or requesting more collateral.

An outside expert can focus and take the time to pull together the information needed to work with a financial partner. “You need a cogent story,” Martin says. Engaging a professional who can help script this story is critical.

2. Start early. If you will be bringing in outside financing, don’t delay. Alternative financing is not always easy to access, Martin says. The challenge is to find the capital that meets a particular company’s needs. For instance, some nontraditional lenders loan only against accounts receivable and not inventory. It can take a while to identify the best source and work through the process. What’s more, the financing may be a mix of loans from various entities like the U.S. Small Business Administration, real estate investors and asset-backed lenders. Pulling all the pieces together can take time.

3. Communicate. When you have to be the bearer of bad (or even not-so-great) news to your bank or financial institution, the temptation is to clam up and delay, “hoping beyond hope that the numbers will change,” Martin says. However, with no information to go on, lenders and investors tend to imagine the worst. Better to set up — and stick to — a schedule of regular meetings. It creates good will and can keep the relationship from deteriorating.

4. Forecast cash. This step sounds basic but often is overlooked. You need to know whether your firm is burning through or generating cash. If it’s burning cash, what steps can you take to stop or at least slow the rate of burn?

When he’s working on a restructuring, Martin crunches daily, weekly and quarterly forecasts of cash coming in and going out. “That way, we’re never behind the 8-ball,” he says. The firm is less likely to be blindsided by an overdraft or find itself hitting a wall because a collection is delayed.

5. Resist the temptation to sue. It can seem like a smart step — your company gets a notice of default, and management decides to hire an attorney to fight the bank on it. Think long and hard before heading to court, Martin says. Once your lawyer gets involved, the bank will bring in its lawyers. Then it’s the lawyers, rather than the business people, talking and dealing.

Today, many banks are more willing to negotiate. But, once the lawyers are involved, you’re headed down a different, and often more contentious path. “There’s no way to unravel the process,” Martin says.