Can you fund a business that has gone bankrupt?

[King bell]

Yes! There is a lot of funding that has gone into the business even after it has gone bankrupt. When looking for a new place to start or expand your business, be sure to explore all of the possibilities and find out what funding may be available in your area.

There are many reasons why a company would fall into bankruptcy. One reason could be because the founders have put too much money into an unsuccessful project. Another common reason is because a company delivers products or services at different times than promised, which causes inventory issues and delayed payments from customers. Whatever the reason, when considering lending to a company that has gone bankrupt, it is important to choose wisely.

Companies go bankrupt also for having too much debt and inadequate funding. However, companies can also be considered too big to fail. For example: GM and Chrysler were considered too big to fail. In 2009 both of these American car companies filed for bankruptcy protection (Chapter 7) because they had large amounts of debt and lost a lot of money in the years leading up to it. Both of these American car companies have successfully re-emerged as new businesses out of bankruptcy and are healthier because of it.

 

[Yugocean]

Can you fund Luna 2.0 after Terra Luna gone bankrupt?
Can you fund Celsius, 3Arrow Capital, and others which were gone bankrupt?
Can you fund any other company which is gone bankrupt in Covid?

No dear, it is very hard decision, those who fund bankrupt company are either wise to make it go better, or fool

I know many government companies gone bankrupt because of corruption, later when those companies were sold off, new owners made them profitable, because they run company as their property, and not as an option to loot money.

I am not funding in any bankrupt company where I have no plan, but I may buy if a company is worth my plan and comes under my budget.

 

[eldavis]

I don't think I would be willing to fund a business that has gone bankrupt, even if I have more than enough capital with me, I believe there would be better investments out there to put in my money. The only way I might actually consider investing on such business is if I am extremely sure that the business itself is worth saving. There are some businesses out there that might be having financial issues, but with the right hands, things can turn for the better.

 

[Mika]

It depends on how the business went bankrupt. A lot of businesses go bankrupt due to mismanagement. There is no harm in investing in this kind of business if you can bring a good management team. However, when the business goes bankrupt because of the wrong product, it will be very risky to invest. Celsius went bankrupt because of mismanagement. The company tried to promote its native token at the cost of investors' money. Celsium did not go bankrupt because the crypto market went down, well a lot of crypto companies incurred huge losses during this bear market. But they are still afloat, for instance, Binance, Coinbase, etc. However, Celiusm went bankrupt because, in order to attract investors, they were working like a ponzi scheme, they were promising more returns than they could actually afford. In the current situation, for small investors, investing in a company like celsius will be risky.

 

[Yusra3]

It may be risky but not impossible to re-start a business which was closed in the past. A hand is required to perform a comprehensive due diligence and these entail understanding why the prior venture failed and to examine whether the issues have been addressed. Seek out a strong organizational team, a solid strategy, market viability, and ways to prevent making the past mistakes. Make sure that such cases are taken care of and that no past lawsuit or liabilities are transferred. In spite of all the cautionary measures, putting trust in a lapsed business and having virtually limitless trust and a lot of patience are the characteristics of a speculative investment.