Archive for Bankruptcy

When filing bankruptcy various things occur.  Creditors are ruled to stop calling and collecting.  Courts examine your debts.  And depending on what type of bankruptcy is filed, some of your personal assets are sold off to help pay back your creditors.  If that does not occur, then there are some outstanding debts that are just dismissed.  But how does all this affect a small business loan?  Here we take a closer look at what to expect with a small business loan.

It is possible to attain a small business loan after filing for bankruptcy.  However, it is a matter of what your credit history has been since filing.  If it has improved, then the courts may allow you to apply for a small business loan.

In addition, your current financial situation at the time of applying for a business loan is taken into consideration too.  Has your financial earnings increased since filing bankruptcy?   Is there proof of a steady income?  Is there a means to pay back the loan on-time?

Furthermore, the reason for applying for a small business loan plays a determining factor as well.  Do you need it for expansion, equipment, and/or marketing?  Is it to ensure the business continues to operate smoothly or is it to buy unnecessary technology?  The bankruptcy courts will take a look at these factors before deciding on whether it is appropriate to be applying for a small business loan.

For more information on funding your business while your credit is shot, talk to one of our small business loan experts today.  Ask about merchant cash advance and other options that may be more appropriate for someone in your position.

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