Business Loan and NY Bankruptcy
A business needs capital to start and maintain its business flow as it grows and expands. Without the right amount of money, your business may suffer and struggle to stay afloat. In these instances, you may need to secure funding through a loan. A business loan offers relief from mounting business expenses and allows you the freedom to acquire items and resources to assist you with business advancement. However, if you suffer from financial struggles that lead to bankruptcy, you may need legal assistance to navigate the process of getting a loan.
What Is a Business Loan?
A business loan is a financial tool used to further business endeavors. A bank or a private lender will offer to provide funding based on specific terms and conditions. Most business loans require you to meet specific criteria set forth by the lender. Some points taken into account when determining whether to offer a loan include the following:
- Credit history
- Credit score
- Business plan
- Type of business
- Investors
- Potential growth
Most lenders charge a fixed interest rate for a business loan, but it’s important to know whether that interest rate will change over time. Some loans may “balloon” over time, so you should always know the terms and conditions and any fine print in contracts before agreeing to secure the loan.
Different Types of Business Loans
There are several types of business loans to consider. You may wonder, “How hard is it to get a business loan?” Each has certain benefits and considerations based on your current and future situation. They include the following:
- Term loans
- SBA loans
- Startup loans
- Short term loans
- Business line of credit
- Invoice factoring
- Microloans
- Invoice financing
- Merchant cash advances
- Working capital loans
- Commercial real estate loans
- Business-related personal loans
- Equipment financing
Because there are so many options, knowing which would be the most beneficial with fewer long-term drawbacks is essential.
How Bankruptcy Affects Business Loans
If you have had a bankruptcy in the past, you may not be able to qualify for loans through a bank. Getting a loan after bankruptcies can prove challenging. A bankruptcy stays on your credit report for a specified number of years. You may qualify through other lenders but pay higher interest rates and struggle to get a loan with ideal terms and conditions until the bankruptcy falls off your credit report.
Business Loans After Bankruptcy
Finding an advantageous business loan can be challenging after you file for bankruptcy. Many options listed above may be off the table until the specified time passes when the bankruptcy falls off your credit report.
You may need to work to find lending options that work for your situation. You can also address the issue by providing a written statement to lenders and enlisting the assistance of a co-signer with excellent financing potential.
Working with a skilled attorney who handles bankruptcy-related matters may also prove valuable. They can provide information and options to increase your chances of mitigating your bankruptcy problems and help you get the financing you need to start or even expand a business endeavor.
How Ursulova Law Offices Can Help
Ursulova Law Offices has a Brighton Beach bankruptcy lawyer with the skills and experience to get results. We provide bankruptcy lawyers in Brooklyn NY, to assist clients with issue resolution resulting from financial issues and past bankruptcies. If you would like to learn more about how we can help you handle issues related to bankruptcies, we encourage you to call us. Our team can schedule a consultation for services or answer questions about the services we offer to residents in the areas we serve. Be sure to get the professional legal assistance you need to get back on track and reduce debt.
