Getting a Small Business Loan After a BankruptcyDallas Legal News
Yes, it is true that bankruptcy sticks around and can remain on your credit report for a long period of time. However, many people who have to endure the process of business bankruptcy might not want to call it quits on their business. But is receiving a small business loan possible after filing for bankruptcy or do you have to fear not being trusted again? This process that can have a devastating impact on your credit might leave you with several questions.
Presenting a Business Plan After Bankruptcy
Having a business plan is incredibly important when it comes to getting through to lenders and working toward another loan. One of the most important aspects of loan companies is your ‘ability to repay.’ If you have a plan in place to make money and find success in your business once again, you will clearly be able to repay the loan. This makes you a trustworthy individual to the loan companies. If your business is expected to have a high rate of failure, no bank will take the risk.
Keeping Debt Down After Bankruptcy
Bankruptcy might seem like a failure to you, but what it really means is a fresh start with your finances. You want to take advantage of this fresh start and never make the same mistakes that contributed to the bankruptcy process the first time around. If you can show the lender that your debt will be at a minimum as you start your business over once more, you are more likely to obtain that loan. However, you will have to show numerous means of evidence rather than just your word. For instance, if you can show that you have consistently made rent payments since your bankruptcy, this is a step in the right direction.
On top of that, you want to show that your income is consistent. Financial stability is the key to getting the loan that will help you through these times. If you have enough income to physically repay the loan and this is not expected to change, loan companies will see that you are in the clear.
Prepare Facts When Making Your Case
You want to have evidence on your side when you are talking to somebody about a loan. If there are items that need to be addressed on your credit report, you want to ensure that you have an explanation at the ready – but you also want to tell the truth. When you are explaining why you had to endure bankruptcy, you should always have information on what led to your financial hardships and how you can keep this from happening in the future. Make sure that you always keep this brief and factual.
Is it Possible to Obtain a Small Loan After Bankruptcy?
Everybody deserves a fresh start, even if it takes some time to get back on your feet again. At MJ Watson & Associates, our skilled bankruptcy attorneys in Texas have the know-how and decades of experience assisting those in need during this difficult process full of decisions. You might be concerned about the future of your business but we are here to protect your interests. Please contact our skilled bankruptcy attorneys at (214) 965-8240.