Help For Distressed Businesses

 In Accounts Receivable Factoring

The U.S. Federal Bankruptcy laws, initially created in 1800, were intended to provide a safe haven for businesses that may be unable to maintain payment to creditors.  This can happen for any number of reasons —  perhaps the business is experiencing temporary income losses, or sudden equity depletion and an unanticipated loss of customers. A financially troubled business can file bankruptcy under Chapter 11 of the U.S. Federal Bankruptcy Law. Such a filing provides an immediate stay, preventing creditors (friendly and otherwise) from enforcing collection actions until the filing is reviewed by a Bankruptcy Court. This interim financing is called Debtor in Possession financing or DIP.

The Bankruptcy Court may allow the company in distress to repay its debt over time from future earnings, in which case, the business will generally require financing to help it recover. A/R Funding is ready to provide DIP financing under many circumstances. We can facilitate the ongoing working capital and cash flow needs of the suffering business until it is financially stable. With this type of agreement, the lender is protected from malicious outside detrimental actions against the company.

For companies experiencing difficult times, please know that all is not lost. A/R Funding can, through our factoring program, provide the time and resources needed for a business to reorganize and become profitable again. Don’t hesitate to call A/R Funding to discuss a failing business or in the event of a filing under the U.S. Bankruptcy Code. We are here to help, we are experienced in the practice, and we can provide the flexibility needed for a turnaround. A/R Funding is your reliable financial partner when the chips are down. Contact us today.

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