Business Owners in Distress
A Way to Breathe When Debt Payments Are Crushing You
If you’re running a good business but drowning in daily or weekly debt payments, you’re not alone.
- Multiple Merchant Cash Advances (MCAs)
- Falling behind on lenders or vendors
- Payroll stress every week
- Working harder, but always short on cash
At some point, “just one more MCA” stops working. You’re out of room.
This page explains one possible path forward and where we may fit in. It is not legal advice. Any decision to file bankruptcy must be made with your attorney.
What Subchapter V Is
Subchapter V is a type of small business reorganization under Chapter 11. Very roughly, it can:
- Put an immediate stop to most collection actions
- Let you restructure or reduce certain debts under court supervision
- Give you time to work out a plan, if the underlying business still works
It is not a magic eraser, and it is not right for everyone.
You will need a bankruptcy attorney to tell you if it’s a fit.
You will need a bankruptcy attorney to tell you if it’s a fit.
Where We Fit In (and What We Don’t Do)
We are a working-capital provider.
In some Subchapter V or small Chapter 11 cases, if your numbers make sense, we can:
- B2B companies under Provide short-term working capital using new invoices your company issues after the filing, andb>crushing daily/weekly debt payments
- Do it under a court-approved order your attorney negotiates.
Important:
- We do not decide whether you should file. Your attorney does.
- We do not buy out MCAs or other old debt.
- We do not take equity or ownership in your business.
- We do not run your company or act as your CRO (Chief Restructuring Officer).
Our role is narrow: help fund operations after filing, if the business is still
viable, while you and your attorney work on a plan.
How Our Post-Filing Working Capital Works (Conceptually)
If your attorney believes it may help and we approve the file, the basic idea is:
1. You file a Subchapter V or small Chapter 11 case with your attorney.
2. The court approves a budget for essential expenses (payroll, rent, core vendors).
3. We may agree to provide working capital against post-filing invoices you issue to your customers.
4. Money from those new invoices is directed into a controlled account and applied:
o first to agreed costs and fees,
o then to repay the working capital we advanced, and
o the rest flows through to your business under the court- approved budget.
o then to repay the working capital we advanced, and
o the rest flows through to your business under the court- approved budget.
You are not taking on “just another MCA.”
You are using a structured, supervised tool to keep a viable business alive while the debt is fixed.
When This Might Make Sense
This path is sometimes worth exploring when:
- Your core business is solid (customers, margins, demand),
- You are being crushed by daily/weekly debt payments, often MCAs,
- You cannot get a realistic bank line or traditional DIP loan, and
- You and your attorney believe the business can be cash-flow positive once the debt stack is fixed.
If, even without any debt payments, the business still loses money every month,
a Subchapter V + post-filing facility may not be the right answer. In that case,
funding just extends the pain.
What to Ask Your Attorney
If you’re already speaking with a bankruptcy or business attorney, you can ask:
- Would a Subchapter V filing be appropriate for my situation?
- If my debt payments were paused and restructured, could this business be profitable?
- Does it make sense to consider a post-petition working capital facility based only on new invoices?
- What are the risks to me personally (including personal guarantees and credit) if I file vs. if I don’t?
- If we explored this kind of facility, how would it show up in the budget and court orders?
If your attorney thinks our structure might help, they can contact us directly for:
- Sample court orders
- Term sheet
- Reporting templates
We will only speak with your attorney or with you together with your attorney
on this subject.
Important Things to Keep in Mind
We are not your lawyer.
Nothing on this page is legal, tax, or accounting advice.
Filing is serious.
Subchapter V and Chapter 11 affect contracts, relationships, and your credit. You should understand all consequences before you file.
Not every case qualifies.
We say “no” when:
the business cannot be profitable even without debt payments,
we do not believe customers or payers are reliable enough, or
the legal or financial risks are excessive.
Sometimes the best advice we can give is:
“Talk with your attorney about other options. Funding this would not help.”
“Talk with your attorney about other options. Funding this would not help.”
Next Step If You’re an Owner
Talk to a qualified bankruptcy / Subchapter V attorney.
- Ask the questions above.
- Make sure you fully understand your options.
If your attorney believes a post-petition working-capital facility could help, they can:
- Contact us directly,
- Request our order sets and term sheet, and
- Discuss whether your case meets our internal criteria.
Your focus should be simple:
“If I could fix the debt and keep payroll current, is this a business worth saving?”
If the honest answer is yes, then Subchapter V plus the right working-capital partner might be part of your solution.