Debtor in Possession (DIP) Financing
Reorganize. Restructure. Regain Control.
Unlike traditional financing, DIP financing typically takes priority over existing debt, equity, and other claims, giving lenders the security to provide crucial funding when it’s needed most. This makes DIP financing one of the few options available to distressed companies looking for a turnaround.
At ClearCoast Capital, our DIP solutions are designed to help companies stabilize, restructure, and position themselves for long-term success.
What Is DIP Financing?
DIP financing is a specialized funding option for companies that:
- Have filed, or plan to file, for Chapter 11 bankruptcy.
- Need working capital to keep operations running while reorganizing.
- Have a plan in place to restructure and return to profitability.
The term “Debtor in Possession” reflects that current ownership and management usually remains in control of the business after filing Chapter 11, while also gaining access to new capital to support the restructuring plan.
DIP financing is not intended for companies that plan to liquidate. Instead, it is a financial tool to provide stability during bankruptcy and enable a path forward that involves its creditors as well.
This process provides capital to cover payroll, suppliers, and operations without waiting on customer payments. It also helps rebuild credit and may position your business to qualify for more traditional financing in the future.
Whenever possible, it’s best to begin the DIP process with ClearCoast before filing for Chapter 11. This allows us to align financing with your bankruptcy plan from the start. However, even if you’ve already filed, we may still be able to provide support.
Why Your Business May Need DIP Financing
- Keep Operations Running: Access the funds you need to continue serving customers during bankruptcy.
- Support Restructuring: Use working capital to implement your turnaround strategy and return to profitability.
- Stabilize Cash Flow: Cover payroll, suppliers, and other expenses with immediate funding.Strengthen Credit: Position your company for improved financing options post-restructuring.
Get the cash you need!
Get the cash you need!
Benefits of DIP Financing with ClearCoast
- Keeps your business operating during Chapter 11
- Provides one of the few funding options available in bankruptcy
- Can be arranged before or after filing
- Immediate working capital upfront
- Professional in-house collections management
- Time to focus on running your business while we manage receivables
- Years of experience helping distressed companies restructure
- Positions your company for future growth
Why Choose ClearCoast for DIP Financing?
ClearCoast Capital brings proven experience in helping businesses secure the funding they need to operate through Chapter 11 bankruptcy. Whenever possible, we recommend engaging with us before filing, so we can design the strongest financing strategy and align it seamlessly with your reorganization plan. This preparation allows us to move quickly once the filing occurs, avoiding unnecessary delays in accessing capital.
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Factoring: A Flexible Form of DIP Financing
One of the most effective ways to structure DIP financing is through invoice factoring. By leveraging your company’s unpaid receivables, you can access immediate cash flow without taking on new debt. This approach provides critical liquidity to keep operations running while your business restructures under Chapter 11 protection.
Beyond stabilizing working capital and cash floe, Factoring with ClearCoast can also help rebuild your company’s credit profile. This improved financial standing can open the door to more traditional financing once your business is back on a path to profitability.
ClearCoast Capital: Helping Businesses Rebuild
Filing for Chapter 11 doesn’t have to be the end, it can be the beginning of a turnaround. With DIP financing through ClearCoast Capital, your company can gain the liquidity and support needed to restructure, rebuild, and emerge stronger.
ClearCoast Approach
Our Commitment
Speed – Our process is designed to move quickly, delivering approvals and funding in days, not weeks.
Adaptability – As a private capital partner, we take a flexible, solutions-driven approach tailored to your business.
Transparency – We operate with honesty and clarity, ensuring you understand every step of the process.
Partnership – Work directly with experienced decision-makers who are invested in your success.
Why Choose ClearCoast for DIP Financing?
ClearCoast Capital has extensive experience in DIP financing, providing businesses with the funding they need to navigate through the bankruptcy process. Ideally, we encourage clients to come to us before filing for bankruptcy, allowing us to craft the best possible strategy and prepare for the Chapter 11 filing. This also enables us to file immediately after your bankruptcy filing, ensuring the process moves forward without unnecessary delays.
That said, if you have already filed for Chapter 11 bankruptcy, ClearCoast may still be able to help. Our deep expertise in DIP financing ensures we can provide solutions even after the filing.
Factoring: A Flexible Form of DIP Financing
One of the most flexible forms of debtor-in-possession financing is factoring your company’s accounts receivables. Factoring allows you to obtain capital based on your outstanding invoices without taking on additional debt. This provides much-needed liquidity during bankruptcy and helps your business stabilize while restructuring.
In addition to supporting immediate cash flow, factoring with ClearCoast Capital can help your company rebuild credit. Over time, this could allow your business to qualify for more traditional bank financing as it returns to profitability.
ClearCoast Approach
Our Commitment
Collaboration – Strong partnerships create stronger outcomes. We work alongside our clients to achieve shared goals.
Expertise – Experience and insight guide our decisions, allowing us to deliver practical, effective solutions.
Forward Thinking – We believe every challenge presents an opportunity for growth and progress.
Innovation – We approach challenges with creativity and determination, developing solutions that move businesses forward.