when a company secures dip financing it lets vendors suppliers and customers know that the debtor can stay in business provide services and make payments for goods and services during its reorganization 
the bottom linedebtor in possession dip financing is meant for firms in chapter 11 bankruptcy it s a special kind of financing that allows them to continue operating only companies that file for bankruptcy protection under chapter 11 are allowed to access dip financing which usually happens at the start of a filing 