Can I get a loan if I’ve filed for bankruptcy?
Getting a loan after you’ve filed for bankruptcy can be challenging, but it is not impossible. Generally you will have to wait 4 to 6 years from your bankruptcy before you can get a loan, and during that time your credit record needs to be clean—no late payments, no collections, and no charge-offs. Lenders need to see that since your bankruptcy you’ve been on the right track.
There are alternative lending options available to business owners who have previously filed for bankruptcy including merchant cash advances, factoring, invoice financing, peer to peer lending, and loans against personal assets.
Can I get a loan if I don’t have money for a down payment?
Some small loans, generally below $50,000, don’t require a down payment, or only require a small one (for instance less than 10%). These loans are approved based on good credit. In addition, even if you don’t have liquid assets to apply to a down payment, if you can show that you’ve put a capital injection into your business already lenders may accept that as your capital requirement.
Your down payment must come from your own resources: your savings, your personal or home equity, or grants given by friends and family that do not need to be repaid. You cannot fulfill your capital requirement with money borrowed from other sources, such as a personal loan or credit cards.
Ked Harley is a writer and researcher for Biz2Credit, a leading credit marketplace connecting small- and medium-sized businesses with small business loans, service providers, and complementary business tools. She is also a self-confessed coffee addict working out of New York City. Her interests include business and finance, world news, food, and travel, and she enjoys yoga and running in the park