(For immediate release) Miami, Florida – Companies undergoing Chapter 11 bankruptcy have a new financing alternative thanks to Commercial Capital LLC’s debtor-in-possession (DIP) financing program. The program provides needed financing to companies undergoing a turnaround restructuring, providing them with the necessary liquidity to meet current obligations and capitalize on new opportunities.
“Undergoing a chapter 11 bankruptcy restructuring can be a harrowing experience for a business owner,” said Marco Terry, president of Commercial Capital LLC. “Debtor-in-possession financing alleviates financial pressures, increasing a company’s chances of successfully reorganizing the business and leaving the bankruptcy process as a viable company,” Terry added.
DIP financing, as debtor-in-possession financing is often called, can be hard to obtain because few lending institutions are interested in financing insolvent companies. Commercial Capital, however, has adapted its factoring program and has begun offering it to companies undergoing reorganization. Due to the specialized nature of factoring, it is offered only to companies that sell to other businesses or to the government.
A receivables factoring program is usually easy to obtain and can be implemented quickly, though it requires the approval of the bankruptcy court. Furthermore, invoice factoring easily integrates into your turnaround plan, as it can help strengthen your balance sheet. Although factoring’s main benefit is turning slow-paying invoices into immediate cash, it also helps strengthen your client roster by ensuring you do business only with solid customers.
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