In the past bankruptcy just about guaranteed that lenders would not even consider giving you a business loan for at least 10 years. That is how long it takes for the bankruptcy to be removed from your credit report. Things have changed as times have changed and banks are more willing to lend money to companies that have had problems than in any time during the past.
Most of the time if the bankruptcy is a year or more in the past they will consider giving you a business loan based solely on what your company is doing at that time. Having the right credentials and other documentation to show your improved financial situation is very important for this purpose. As an accomplished small business consulting coach, I can assure you that documentation is everything to a bank.
You can expect that the interest rates will be very high on any loan you receive after bankruptcy. Your credit rating has been damaged and this damage will be reflected in the higher fees that you will be charged when you try to get a business loan after a bankruptcy.
It may even be a requirement that you get a co-signer in order to qualify for a business loan. They will more than likely require some sort of collateral in the form of a physical asset as additional surety for any loan you are trying to get. This is what they have to do to protect themselves, since you have a bankruptcy in your record the lenders will be more skeptical about getting repaid and understandably so.
Before applying for a business loan after a bankruptcy you should check your credit report with the three major reporting agencies. Even though the bankruptcy may have discharged the obligation it may still be listed on the report. Getting it expunged from the record is your responsibility. You can get the reports from Experian, Equifax and TransUnion online.
If you fail to get this done, the delinquencies will remain on your credit report and you will deal with these consequences every time you try to obtain/rebuild credit. Rebuilding your credit is important, you may have to start with a few secured credit cards.
It is a good idea to keep these bills low at first so that you can pay them off in a timely manner. Higher balances will also lower your existing credit rating.
Any of the creditworthy bills you accumulate after this time will help to improve your credit scores if you maintain a good payment history. Credit agencies are only concerned about whether you make the payments on time and whether you keep high balances.
Finally when applying for the business loan after bankruptcy make sure you have a strong business plan, can answer any reasonable objective and that you have a possible co-signer waiting if needed. Getting your credit back in good standing and receiving a business loan is possible after bankruptcy but you have to do the leg work.
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