Start a Business After a Chapter 7 Bankruptcy
Chapter 7 bankruptcy doesn’t mean the end of the world. You still have an opportunity to launch a new business and offer similar services, using a different name. Also, you can get approved for a bad credit merchant account with quite favorable terms. Let’s see how.
Bankruptcy: Bad Credit Merchant Account
No one says bankruptcy won’t put rocks on your way. However, you can still apply for business loans and get approved for them. Usually, lenders will tell you to wait for up to 3-7 years after a completed bankruptcy. Then, they’ll determine the level of your eligibility.
When it comes to Chapter 7 bankruptcy, in this case, your debts will usually get discharged after 3-5 months. In comparison, Chapter 13 bankruptcy will require 3-5 years. This may make you change your plans concerning starting a new business.
If you’re filing for Chapter 7 bankruptcy, you don’t need to wait for ages: you can start it immediately after the process of filing is over. The bankruptcy court well understands that you need to makea living during your bankruptcy.
This means you’ll need to start a business or get involved in another self-employment activity. Be aware, you may be required to get permission from the court to obtain additional funding in case you need it to launch a new business.
Thankfully, there’re true high risk business funding experts that’re ready to work with you and help you overcome the challenges on your way fast and easily. With a respectable high risk alternative online lender and processor, you can enjoy the cheapest possible rates for the most secure financing and for a bad credit merchant account in the field.
New Business After Chapter 7 Bankruptcy
Bankruptcy doesn’t prohibit you from starting a new business. However, “possible” doesn’t mean easy: you’ll have a difficult time getting approved for credit. The good news is that you can overcome the challenges more easily if you work with the right merchant services provider in the high risk space.
To get back on track with greater ease and success, just follow these steps:
- Every challenge and failure has a lesson to learn. Learn it and move forward with greater knowledge.
- Start a business that doesn’t require a fortune.
- Have a plan with pragmatic principles and follow them.
- Build a solid business plan featuring your type of business and a solid analysis of its profitability and your projections. Then keep track of your buget on various projects by using an employee time tracker app.
- Ask someone with excellent credit to become a co-signer so you can get approved for lower rates.
- Request an EIN (Employer Identification Number) and turn to your local government offices for the necessary business permits.
- Have the necessary inventory in place if you’re selling products.
- Fliers and online bulletin boards can help you with your business ads.
- Improve your credit through a secured credit card and make your payments on time.
- Focus on 1 thing at a time.
To sum up, though it’s not easy to start after bankruptcy, it’s not impossible. Just have the right strategy and take the right steps to get back on track.
Author Bio: As the FAM account executive, Michael Hollis has funded millions by using bad credit merchant account solutions. His experience and extensive knowledge of the industry has made him finance expert at First American Merchant.