British Steel's workers have been told that production will continue as normal after funding was provided by lenders and shareholders.
The company had asked for a package of support to tackle Brexit-related issues and has been holding talks with the Government, raising fears for the future of the company, which employs more than 4,000 workers, mainly in Scunthorpe.
A British Steel spokeswoman said: "British Steel has the backing of its key stakeholders, including shareholders and lenders, and operations continue as normal.
"As the business navigates the significant uncertainties caused by Brexit, and explores options to strengthen the business for the long term, we are pleased to confirm that we have the required liquidity while we work towards a permanent solution."
Alasdair McDiarmid, of the Community Union, said it was welcome news that British Steel owner Greybull has found sufficient funds to give the business a chance.
But he insisted that the Government must help find a solution to secure the long term future of the business.
"At this critical time, we would urge everyone involved, including suppliers and contractors, to hold their nerve and refrain from taking any knee-jerk actions that could create further barriers to a successful outcome."