We all have a bad day in business. If you are a business owner and had a personal or business bankruptcy you still have a chance in obtaining a business loan. A personal bankruptcy and business bankruptcies are very different in nature. In addition, there are different types of bankruptcies such as Chapter 7, Chapter 11, and Chapter 13.
If you had a personal bankruptcy and it was discharged one month ago and your business has good cash flow you have a strong probability in obtaining a business loan. Interest rates tend to be higher but you need to take into consideration the amount of debt that was discharged. If you had $500,000 discharged in a Chapter 7 filing and you end up paying a 35% interest rate; the amount that you pay in interest will always be less than the debt you did not pay off.
If you have an open bankruptcy, usually a Chapter 13 and you are repaying back creditors you may have a challenge in obtaining business funding. Most lenders want bankruptcies to be discharged or have an established repayment plan that is satisfactory.
If you had a business bankruptcy, you still have a chance. However, other factors will be taken into consideration. Some factors that lenders evaluate are: ownership interest, nature of the business, business debts discharged and other factors. The positive attribute about alternative lending is that if you are business owner with a bankruptcy you can still have a chance in getting business funding.
Launched in 2012, Lendinero initially launched from Miami targeting Hispanic businesses. Today, it has opened up its doors to cater to businesses from all ethnic groups and backgrounds. Lendinero provides funding when banking is not an option. Lendinero can provide a business credit decision within 24 hours and fund as fast as 7 business days.