Facing bankruptcy and not sure about your funding options from here? All might not be lost. Chapter 11 bankruptcy allows for court approved Debtor-in-Possession or “DIP” financing to enable struggling companies to restructure and carry on trading rather than shut down and liquidate completely.
Many businesses use factoring as a funding method in DIP financing. It works the same way as it would normally, providing immediate funding against open accounts receivable instead of waiting to get paid. Qualification is based on the strength of the customer, so the negative impact of the bankruptcy isn’t an issue for the borrower.
As you would image, there are a few differences when dealing with a company either in or about to file for Chapter 11 Bankruptcy.
Eagle Business Credit are experts in providing invoice factoring services for struggling businesses. The team have supplied thousands of businesses with the money they needed to survive and grow and pride themselves on delivering outstanding service to their clients. If you think you might need a supportive funding partner to see you though a bankruptcy restructure, call them today on 855-420-8318.