Hi, my name is Cynthia and I am working on a business plan to apply for a
loan to start a business.
How realistic is it for me to be able to get a loan when I have filed
personal bankruptcy. In 2015 I am supposed to be clear of the bankruptcy. I
have worked very hard to restore my credit in the years since filing the
bankruptcy.
Will a bank/SBA take that into consideration when I apply for the loan or
will that be an automatic no?
I am working very hard on this business plan to make sure it is very well
laid out. also, when I get it complete I have someone from SCORE who is going
to look at it for me.
Will this be enough?
Thank you in advance for any comments,
Sincerely,
Cynthia Mishoe
I am a white male 45 yrs old and I was self-employed in 2009 and was locked
up in 2009 for felony charges for insufficient funds on returned checks. I
went to prison and was recently released. I am considered a minority now. How
and where can I apply for loans and grants to start my business back up?
The bankruptcy could be OK if 1) enough time has passed like 5 to 7 year
minimum and 2) your credit score is built back up. Most banks or any lender
have minimum credit score requirements - usually around 700+ FICO these days.
If your score is below that mark - bankruptcy or not - they will not even
consider your loan request.
Also, very few banks and lenders (none that I know of) will fund start up
businesses. Most lenders look at past results to judge what a business can do
in the future. If you have no past results, then no bank will lend you money
unless you have other income - know that all lenders want to get repaid and
thus look at a past track record to see if your business has the ability to
do so.
Personally, I believe that you are wasting your time going too banks as they
don't fund startup businesses. However, there are other options like micro
loans or some private lenders that might be able to provide personal loans
that you can use to start your company. However, these sources don't provide
a lot of capital - usually below $10,000.
Your best bet would be to forget about business loans and look for other ways
to bootstrap your business. A simple search on this site or on the web will
give you a ton of ideas on how you might be able to bootstrap your company.
Know that nearly all new businesses (startups) use some form of personal
resources to get started. Then, once up and going and earning a little
revenue or creating financial assets like accounts receivables, purchase
orders or credit card receipts or some business cash flow, they then can turn
to other alternative financing methods and use those until their business is
primed to meet the strict standards of bank underwriting.
Know that where there is a will, there is a way. If you can’t get a
business loan (which I doubt you will), you just have to find another way.
Small businesses have been doing this since the beginning of time. Successful
businesses just never give up and keep at it until they open the right door.
JGabriel | Community Moderator | 11/12/2012 - 12:19 pm
ERP MotorSports Network | Window Shopper | 11/11/2012 - 9:11 pm
up in 2009 for felony charges for insufficient funds on returned checks. I
went to prison and was recently released. I am considered a minority now. How
and where can I apply for loans and grants to start my business back up?
BMT | Window Shopper | 11/11/2012 - 8:09 am
The bankruptcy could be OK if 1) enough time has passed like 5 to 7 year
minimum and 2) your credit score is built back up. Most banks or any lender
have minimum credit score requirements - usually around 700+ FICO these days.
If your score is below that mark - bankruptcy or not - they will not even
consider your loan request.
Also, very few banks and lenders (none that I know of) will fund start up
businesses. Most lenders look at past results to judge what a business can do
in the future. If you have no past results, then no bank will lend you money
unless you have other income - know that all lenders want to get repaid and
thus look at a past track record to see if your business has the ability to
do so.
Personally, I believe that you are wasting your time going too banks as they
don't fund startup businesses. However, there are other options like micro
loans or some private lenders that might be able to provide personal loans
that you can use to start your company. However, these sources don't provide
a lot of capital - usually below $10,000.
Your best bet would be to forget about business loans and look for other ways
to bootstrap your business. A simple search on this site or on the web will
give you a ton of ideas on how you might be able to bootstrap your company.
Know that nearly all new businesses (startups) use some form of personal
resources to get started. Then, once up and going and earning a little
revenue or creating financial assets like accounts receivables, purchase
orders or credit card receipts or some business cash flow, they then can turn
to other alternative financing methods and use those until their business is
primed to meet the strict standards of bank underwriting.
Know that where there is a will, there is a way. If you can’t get a
business loan (which I doubt you will), you just have to find another way.
Small businesses have been doing this since the beginning of time. Successful
businesses just never give up and keep at it until they open the right door.
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