Guide to Financing for Distressed Companies

Seek help from an investment banker

Investment bankers who specialize in turnarounds can help you find financing from investors willing to take bigger risks than banks – and sometimes an equity position in your company.

I recommend: Shelton Carter Hall & Co. is a group of investment bankers and management consultants specializing in turnaround management advisory services. Mirus Capital Advisors, investment bankers since 1987,says financing should be dictated by operating plans, not vice versa. It works with entrepreneurs and family-owned businesses, finding solutions for distressed companies. Kramer Levin represents lenders to companies in and out of bankruptcy.

Bring in turnaround specialists to help line up financing

Turnaround management specialists can help a struggling business locate needed financing.

I recommend: Find specialists through the Turnaround Management Association. Turnaround Consultants International also has helpful advice and information. The Association of Certified Turnaround Professionals lets you search for a specialist in your area.

Hire someone with the right credentials

Some types of turnaround professionals can earn certifications and must adhere to a standard of excellence.

I recommend: The Association of Insolvency and Restructuring Advisors is a national, not-for-profit group serving business turnarounds, restructuring and bankruptcy practitioners. Anderson Bauman Tourtellot Vos is a turnaround management firm, specializing in operational and financial restructuring for troubled companies.

Try free advice

Small business development centers offer free advice that can help salvage a distressed business.

I recommend: Locate a Small Business Development Center near to you.

Find quick cash based on future sales

Get a business capital advancebased on future receipts – without showing business and personal tax returns, collateral, personal and business guarantees or a business plan.You'll need to produce the past four months' Mastercard and Visa receipts.

I recommend: Merchants First accepts most applicants regardless of credit rating and wires funds – from $3,000 to $250,000 - within seven days of completed contracts. Instant Capital Solutions offers FlowFunding and partners with Wells Fargo and Brown brothers Harriman, the nation's oldest privately owned bank. Business Cash Advance offers cash ifyou have at least $2,100 in Mastercard or Visa transactions per month; have no prior, unresolved bankruptcy; and have been in business at least 12 months.