Please EMAIL US a brief description of your situation and funding requirements
Debtor-in-possession factoring and DIP financing are financial tools designed for companies experiencing financial problems that plan to file or have filed for Chapter 11 bankruptcy protection.
One of the most adaptable types of debtor-in-possession financing is factoring your company's accounts receivable, which enables you to get cash and recapitalize while filing for Chapter 11 bankruptcy.
This approach allows businesses to maintain operations and meet immediate financial obligations during the restructuring process. By leveraging their receivables, companies can secure the necessary liquidity to navigate the complexities of bankruptcy and emerge stronger on the other side.
This strategic move not only helps to stabilize cash flow but also enhances the company’s ability to negotiate with creditors and suppliers, fostering a more favorable environment for recovery. Ultimately, effective management of accounts receivable can be a vital lifeline for businesses seeking to turn their fortunes around during challenging times.
Below are a few advantages:
- Protect your company from creditors
- Access capital to support operations while bankruptcy is underway
- DIP financing usually has priority over existing debt, equity, and other claims for the creditor
- DIP finance will help companies get back on track, provide restructuring support, and return to profitability
- Current management and board of directors can remain ‘in possession’ of the business after its Chapter 11 bankruptcy filing
- Ideal for companies billing their customers on credit terms of up to 90 days
- No more waiting 30 to 90 days to get paid by customers
- By offering credit to your customers you can secure more customers
For more information, please EMAIL US a brief description of your situation and funding requirements.
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