Buying or Investing in a Distressed Business is Not, Necessarily, the Same as Buying Distressed Credit- By: NEIL S. SISKIND

Buying or Investing in a Distressed Business is Not, Necessarily, the Same as Buying Distressed Credit.

A business can be distressed for reasons other than being in arrears on a credit obligation.

A business could be in good standing on a loan, while failing to pay its expenses, including its rent, vendors, and/or payroll, as they come do- or a company may have no debt, at all.

Investing in this kind of distressed situation would require debt or equity capital being put towards operations improvements, or to marketing and sales initiatives and personnel, with either option being designed to move the company to profitability through operations changes, as opposed to through buying and restructuring or paying-down credit obligations.

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