Unusual Investments

Alternative Investments | 150 ways to invest your money

150 Types of Alternative Investments – The List

 

33. Debtor-in-Possession Financing – also called DIP financing or DIP loans, debtor-in-possession financing involves making loans to companies that have filed for Chapter 11 bankruptcy.

Making loans to bankrupt companies sounds crazy, but keep in mind that these types of loans often have priority over existing debt and equity.

There are investors with extensive knowledge of the bankruptcy process that specialize in making these types of loans.

Making money through DIP Financing requires a strong understanding of bankruptcy law.

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