Getting a Business Loan After Bankruptcy

: Chris Lee Law Firm

  Filed under: Business Bankruptcy

loan, business loan, bankruptcy, attorney, attorneys, lawyer, lawyers, dallas, texas, tx, fort worth, mckinney, hurst, law firm, tx, bankruptcy process, debt collector, chapter 13,The idea of being able to get a business loan after going bankrupt almost seems counter intuitive to most individuals. The truth of the matter is that while you may well be able to get a business loan after seeking a Texas bankruptcy protection it will prove to be a little more difficult than it would have, had you not been forced down that road.

Many lenders may well expect you to have some kind of collateral in order to secure the financing you require for your new business venture. Be very cautious if you are choosing to secure your financing by using your family home or other large personal assets as this can lead to severe repercussions if you in fact prove to be unsuccessful in the business venture.

Another way of trying to secure financing for your emerging small business is to seek out other types of lenders such as “mezzanine” lenders. Basically what that means is a lender who does not just provide funding at regular interest rate but rather would be willing to take a share of the equity in the company in return for the start-up funding. These types of “partners” may seek to have some input into the running of the business in order to facilitate success. For some, this type of “intrusion” may be unwanted but in some cases it can be the only way of securing funding and they may just have some good things to bring to the table.

Basically, the short answer is yes, you may find funding for a business venture after bankruptcy but you may have to seek out non-traditional lenders or even be prepared to pay a higher interest rate to mitigate any risk a lender may fear. Do your homework and find what works best for you and you business.

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