Secure the liquidity you need to operate, restructure, and preserve value while under court protection.
Built for businesses in active restructuring, this court-approved financing solution supports day-to-day operations, giving you the time and tools to build your comeback.
Access critical working capital to stay operational during bankruptcy proceedings.
Maintain customer, supplier, and employee confidence with funding in place.
Use capital to buy time and execute a viable turnaround or restructuring strategy.
Ideal for distressed companies in active reorganization, DIP financing provides the urgent funding needed to keep operations running and protect long-term value.
Transparent structure designed to gain approval from stakeholders and the court.
Typically senior to existing debt, giving lenders greater confidence and businesses greater access.
Protect jobs and relationships while navigating restructuring.
Continue running your business under bankruptcy protection with capital backing your plan.
Secure immediate funding to relieve payment pressure and negotiate better terms.
Lay the foundation for eventual exit financing or post-bankruptcy growth.
DIP (Debtor-in-Possession) financing is a specialized funding solution designed for businesses undergoing Chapter 11 bankruptcy. It provides court-approved capital to support operations during restructuring—allowing companies to maintain payroll, pay suppliers, and fund day-to-day expenses while formulating a turnaround plan.
This type of financing is often senior to existing debt and plays a critical role in preserving business continuity and protecting enterprise value during the reorganization process.
Have more questions? Our experts are here to make funding simple, clear, and stress-free.
Meet Our Experts
Clients choose eCapital when they need an engaged, solutions-oriented, long-term credit partner with proven capacity, creativity, and continuity. Our expertise is customization—whether on a $5 million or $150 million facility, employing a meticulous, hands-on strategies.
Our tight-knit group of financing experts are agile and client-centric, yet backed by extensive resources with the scale to conquer any challenge. This means we are going to be a better credit partner through every business cycle, bringing capabilities and passion—as patient, flexible problem-solvers—other providers simply do not have. Our track record speaks for itself.
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DIP (Debtor-in-Possession) financing is a special type of funding available to businesses operating under Chapter 11 bankruptcy protection. It provides court-approved capital to help companies continue operations while they restructure.
Any business that has filed for Chapter 11 and has a viable path to recovery may qualify. Approval depends on the business’s ability to repay the loan, the value of its assets, and support from stakeholders and the bankruptcy court.
Funds are typically used for essential operating expenses, including payroll, rent, vendor payments, inventory purchases, and restructuring costs—subject to court approval.
Yes. DIP loans are often secured by the company’s assets and typically hold super-priority status, meaning they are repaid before existing debts.
DIP financing is designed specifically for businesses in bankruptcy. It must be approved by the court, may come with stricter reporting requirements, and often carries a higher interest rate due to the risk profile.
If properly prepared, DIP financing can be arranged and approved within a few days to a couple of weeks—often in conjunction with filing for Chapter 11.
Yes. Because DIP lenders typically receive repayment priority, existing creditors may need to approve or negotiate the financing terms as part of the court process.
Yes. It provides critical runway to continue operating while developing a restructuring or sale plan—making it one of the most important tools for avoiding liquidation under Chapter 11.
