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Bad credit scares you if you’re an American and would like to achieve the small business dream; but bankruptcy can threaten to kill that dreamand bury it forever!Most business lenders don’t lend money to borrowers with poor credit scores.But that is no reason lose hope. Some new-age alternative lenders can still offer your microbusiness finances.
So it is POSSIBLE to get business financingeven after bankruptcy!
But your options may vary based on whether you’ve filed for business or personalbankruptcy. Lending platforms typically request the details of the bankruptcy onyour credit report, that’s why you must attach a short explanation during application to present your case.
Applicants who keep their story short and factual without letting emotion get the best of them and show a determination to recuperate from their fall get a loan from lenders. The type of insolvency in question is also a bone of contention and a determining factor. Whether a lender will tolerate your bankruptcy depends on whether it is personal or business bankruptcy, and its underlying causes.
The period between your bankruptcy filing and loan request is also a factor;more months or years between your bankruptcy and loan request means you’ve likely had time to better your credit status and you can make good use of whatever you borrow.
Which lenders finance bankrupt businesses?
Different lenders have their set of requirements when dealing with bankruptcy. However, most of them typically work with business who apply for business loans 2 to 3 years after bankruptcy. While some of them will also request to see the bankruptcy from your credit report, others have other criteria you must meet to borrow money from them.
However, most alternative lenders will give your bankrupt business a loan after listening to your story, and checking the bankruptcy – Loan application time.
Final Words
Most business also don’t know that it is possible to get a loan with the Small Business Administration, even if an applicant must break some sweat to earn it, more so if they are seeking commercial fundingless than a decade after filing for bankruptcy. The SBA does not factor in bankruptcies for business that apply loans 10 years after insolvency.
Author bio: Michael Hollis is a Detroit native who now lives in Los Angeles. He is an account executive who has helped hundreds of business owners with their merchant loans.
He’s experimented with various occupations: computer programming, dog-training, scientificating… But his favorite job is the one he’s now doing full time — providing
business funding for hard working business owners across the country.
