Debtor in Possession (DIP) Loans Winston Rowe & Associates ...

Many business people and financial managers are not aware of the term 'DIP' Financing - which stands for 'Debtor in Possession' financing. Winston Rowe & Associates has prepared this article to provide an overview of the approach and methodologies surrounding DIP financing.

For more information about DIP financing, prospective clients can contact Winston Rowe & Associates at 248-246-2243 or vast them online at http://www.winstonrowe.com

DIP financing revolves around companies who are in distress and more often than not, in fact almost always, in a bankruptcy proceeding. Therefore why would any finance firm want to finance a bankrupt company?

The answer is that many firms, especially those that are larger and have significant assets have a strong chance of emerging from bankruptcy, obviously as a stronger company ( less debt of course ) and a more reasonable chance of being successful and profitable again.

DIP is clearly a very specialized area, that Winston Rowe & Associates has the financing expertise in on a national basis.

Naturally the goal of the company while it is in a temporary bankruptcy (Chapter 11) is to emerge with new financing. The players and leaders in this specialized area of financing tend to be banks and specialized independent finance firms with significant capital and expertise. It is of course ironic that many of the banks that finance firms and take losses also have specialized DIP divisions which provide capital to the bankrupt firm.

The essence of DIP financing is that the DIP lender is given a super priority security on the assets of the firm. It goes without saying that when a company is in a bankruptcy preceding that the interest rates on the financing can in many cases be quite a bit higher than the customer enjoyed in its normal operating business model. Generally the loan is a bridge loan for 12 to 24 months with interest rates starting at 12%.

Winston Rowe & Associates has always had a core focus on building long-term business relationships with their clients, delivering exceptional and individualized customer service, and positioning financial products that best achieve their client?s goals. ?

Winston Rowe & Associates has an excellent free knowledge based resource for commercial real estate, valuation and market analysis located at:

http://www.winstonrowe.com/Free_Real_Estate_Resources.html

Winston Rowe & Associates
31408 Harper Ave
Suite 147
Saint Clair Shores MI 48082
248-246-2243

Winston Rowe & Associates has no upfront free commercial real estate financing solutions and in the following states.

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, ?Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, ? Texas, Utah, Vermont, Virginia, ? Washington, Washington DC, West Virginia, Wisconsin, Wyoming

rubio colts colts big ten tournament 2012 dennis quaid bruce weber fired notorious big