The first part of this thesis deals with the reasons that can lead to a precarious situation. A company crisis is defined on the basis of business or on the basis of jurisprudential criteria. If a company reaches the stage of a company crisis, it immediately needs to initiate appropriate countermeasures. In most cases the money, which an undertaking possesses at the beginning, is gone. In order to raise capital the company has to consider another financing method. Nowadays, there is a big range of financial opportunities, which means that a business has a wide selection of choosing a suitable financial instrument. Concerning this matter, the paper describes possible financing options and focusses on Factoring. Due to that, it represents all basic facts about this specific financing method. It points out the main functions of factoring and its benefits. Subsequently, the aim of this diploma thesis is to answer the key question. The key question is whether the instrument of factoring is suitable to avoid a company crisis. Referring to that, it is necessary to take a look on the Law for the Reorganization of Enterprises (Unternehmensreorganisationsgesetz). According to this law, there are two components which define a crisis, on the one hand the equity ratio and on the other hand the fictional debt amortization period. In this connection, the Law for the Reorganization of Enterprises declares the presence of symptoms of a crisis if there is a lasting deterioration of these key figures. So the next step is to verify if factoring is an appropriate instrument to increase the figure of equity ratio. The next part of this thesis focusses on the insolvency code. The insolvency code states that a debtor has to make an application of opening insolvency procedures, if the debtor is insolvent or heavily indebted. For this reason, the effects of factoring on the insolvency facts have to be examined. Afterwards, the question whether factoring is a suitable instrument to rescue a company from insolvency will be answered. Subsequently, the paper deals with the different types of Factoring. It will be pointed out, which options of factoring are recommended in a company crisis. Finally, this thesis presents two practical cases about two companies, which have chosen factoring in already opened insolvency proceedings.