Getting a Business Loan After Bankruptcy

Apply for a Business Loan After Bankruptcy

Having to file for bankruptcy is a massive blow to your self-esteem and your business reputation, and building a new business takes a lot of grit and determination. If you think there’s no chance a new lender will trust you with your new venture, don’t lose hope just yet. While, yes, there will be lenders who won’t be willing to look at you until the bankruptcy has been wiped from your history (generally 7-10 years depending on your locality), there are some who will. This article will guide you through your options so you can decide whether jumping back into the world of borrowing is the right move for you.

Important Notice: For SBA Paycheck Protection Loans consider Fundera

Loan Amounts	$5,000 to $500,000
APR Range	Term Loans: 7% – 30% Startup Loans: 7.9% – 19.9%
Repayment Terms	Term Loans: Up to 10 Years SBA Loans: Up to 25 Years
Time to Funding	Varies
Click “Check Rates” to apply to Fundera Check Rates

Can I Get a Business Loan After Bankruptcy?

The answer to this question is, unfortunately, it depends. When you have a personal bankruptcy, it remains on your credit report for anywhere from 7 to 10 years, making it difficult for you to rebuild your credit score during this time. However, it is still possible to get a small business loan after bankruptcy.

You need to move forward with open eyes – both in terms of your own actions, and in those of your potential lenders. You need to think seriously about if you are ready to take on this new responsibility – though it is uncommon for those who have gone through something as distressing as bankruptcy to make the same mistakes again. Next, you need to be sure you aren’t turning to borrowing out of desperation – would it be better to cut your losses, or will this money help your business grow substantially? Be aware that there will be some lenders who are happy to walk in the morally gray area and lend you money at an interest rate you’ll struggle to afford.

Getting a business loan after bankruptcy is possible, and can be just what you need, you just need to think twice before you commit yourself and your business to anything new.