Obtaining a Small Business Loan After Business BankruptcyDallas Legal News
When you endure the process of business bankruptcy, it is not unheard of for somebody to feel as if they will never be able to regain normalcy in their life and get a fresh start on their business. It is a good idea to get yourself back in a successful position after you have received help clearing debts through bankruptcy. Are you able to obtain a small business loan after you have filed for business bankruptcy?
It is important to remember this: After you have filed for business bankruptcy, you will not be able to do so for a certain amount of years again. If there are risks with your business or things that you must work on fixing over a number of years, then it is important that you wait until you are in a comfortable position so that you don’t end up needing to file for bankruptcy again. Before you move forward with another business loan, you must be able to show that you have good credit and have moved past the times of your previous bankruptcy.
Showing Lenders You Have a Responsible Business Plan
Before you attempt to get credit for your business, you need to be able to show that you have an organized business plan to show to lenders. It is also important to show that there is growth in that particular industry so that you can show lenders that there is hope that the business will not fall through and that you will not end up having to file for bankruptcy after the business is back on track. If you seek funds for a business that is known to fail, such as a restaurant, there is a good chance that a lender might not lend to you if you had a previous bankruptcy on top of that.
Another aspect that you will have to do after bankruptcy is to immediately keep your debt down so that you can show that you are reliable. You will have a better chance of getting a loan if you can show that you have kept your debt to a minimum after you filed for the process. By showing that you are now financially responsible, a lender will be more likely to trust in you – and your business.
Speaking with a Lender About All Your Options
If you are looking for a lender who is most likely to lend to you, then you want to know about all of the eligibility requirements you must meet before you file. This is why it is important to speak with a lender one-on-one before you even think about filing for a loan because you don’t want to fall short when it comes to the requirements. You might have to make some cuts, such as a higher interest rate on your loan or collateral, to actually obtain the loan.
At MJ Watson & Associates, our bankruptcy attorneys have helped many clients through the Texas bankruptcy process after they have fallen on hard times in their business and have many questions about how they can move forward. These can be challenging times that you have never faced in the past and we are here to offer our support. Please reach out to us for more information at (214) 965-8240.