I am thinking of filing bankruptcy, but I want to open a business next year. Will I still qualify for a bank loan? Are there other sources of business loans for bad credit?
Can someone still get a business loan if they've recently had a bankruptcy?
It will be very tough to get a business loan a year after a bankruptcy. Even credit card companies extending what they call small business loans through credit cards may not give you the kind of money you need.
Even with a great business plan, banks and other lenders will think twice extending you a business loan because the bankruptcy tells them that you may have problems in managing your financial situation.
Even getting a government-guaranteed loan from the Small Business Administration will be very hard since they look at your personal and business credit history http://www.sba.gov/financing
Your best bet will be to have:
- collateral
- a co-signor or someone who will guarantee the loan for you
Otherwise, you'll have to find other sources of funding such as family members and friends. Or find an investor who will back you up
No comments:
Post a Comment