Negative Company Equity and PO Financing

Thanks to the so called great recession we are seeing demand from companies that have negative equity. Basically, they have more liabilities than assets. The problem with financing companies with negative equity is that they have a high risk of bankruptcy.

Client bankruptcy is one of the biggest fears of any purchase order financing company. Obviously, companies that have negative equity are at a very high risk of bankruptcy. This is why most po financing companies shy away from these opportunities.

Getting  business financing is not necessarily impossible. But you can expect to have to present a solid plan that will show how your company will emerge from problems. If your company is at this stage, you should consider getting some financial advice from a competent adviser - ideally someone who is familiar with turn-around situations.

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