WHAT IS THE BEST WAY TO FIND FINANCING FOR A SMALL BUSINESS WITH A CURRENT PERSONAL BANKRUPTCY?

{ 4 comments… read them below or add one }

Silly Me May 6, 2010 at 8:14 pm

Establish an Employer Identification Number (EIN) free from the IRS–check with your local Employment Security Office for information, or online.

Then your business has it’s own identifying number, not necessarily tied to your Social Security number which will be flagged by the bankruptcy.

Good luck!

bobbalou27 May 6, 2010 at 8:31 pm

go to this site strangers willing to lendmoney to other strangers
http://www.prosper.com/public/welcome/default.aspx

or get married have spouse take out loan, have friends as investors,

Fibonacci May 6, 2010 at 8:36 pm

You don’t know when to quit, do you?

bjlevine May 6, 2010 at 9:28 pm

This will be very difficult to do. Most likely, any small business trying to get funding will need guarantees from the owners. If the owners have bad credit, then the business will have to stand on its own, and if it is a startup then it will not have the credit to get funded.

If the funding is asset based (i.e. for purchasing land, buildings, or easily saleable hard assets) it may be able to get funding either through a secured loan or through some type of leaseback.

But financiers want collateral. If you can find someone with significant assets to serve as a loan guarantor, you may be able to get funded. Otherwise you may have to use accounts receivable factoring, which is an expensive way to fund a business.

I recommend getting together with a competent CPA to discuss the best way to proceed. Often, your accountant will have relationships with banks and lenders that may be able to assist you.

Good luck with your new venture!

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