“Just because something doesn’t do what you planned it to do doesn’t mean it’s useless.” – Thomas A. Edison
Though getting business funding after a bankruptcy is more challenging, but it is possible. Your credit report keeps your personal bankruptcy for 7 or 10 years, thus making it not so easy to obtain a loan.
Small Business Funding After A Bankruptcy
Eligibility for business funding is based on certain criteria that help lenders determine if you can obtain it or not. Some business owners turn to credit unions after not having found the right professionals in the field to get a business loan. Others go to lenders suggested by their local chamber of commerce. If you’re among such business owners, consider asking someone with a good credit history to cosign for you.
You may be charged higher interest rates based on your credit history. You may also be required to secure the funding with collateral like the equipment, etc. purchased with the loan funds.
With emerchantbroker.com, a highly reputable company in the field, you can be sure to obtain funding for your business. EMB offers business funding regardless of your bankruptcy, bad credit, or the type of your business. EMB provides ACH Business Funding and Cash Advance Program.
When Applying For Business Funding
Fortunately, lenders may consider your situation not that much risky. To get the business funding you need, you should take certain steps to increases the chances of obtaining it. Below you can find important tips that will help you get a business loan more easily.
- Prepare Your Business Plan – The potential lenders will ask you to present your business plan. Prepare a well-organized and solid business plan. If your business is characterized by a higher rate of failure like a restaurant business, be prepared to answer the lender’s questions related to your business.
- Have Enough Income – Your income guarantees your ability to repay the loan for your business. You must demonstrate consistent income so that the lender can approve your funding.
- Prepare Facts – Attach factual explanations to your credit report, showing the reason of your financial problems. If they were caused by an event like a car accident, injury, illness, divorce, etc., you can explain the situation through a brief statement.
- Explain The Reason Of Your Bankruptcy – Prepare a statement explaining why you went bankrupt. Show how your current situation is different. Keep your statement brief, without a negative or emotional touch.
- Keep Your Debt To Minimum After A Bankruptcy – Your debt after a bankruptcy should be kept down. Also, you should prove you have a high level of financial responsibility. You can present your statements showing your mortgage or rent payments were paid on time since your bankruptcy.