The most widely-spread type of bankruptcy is the so-called “Chapter 7 bankruptcy.” It can be of help to business owners in certain cases. Is it possible to launch a new business after a Chapter 7 bankruptcy? How can you do this? Where can you find a reliable bad credit merchant account or business financing? Just read below to know.
Chapter 7 Bankruptcy & Bad Credit Merchant Account
Do you have bills you’re unable to pay? Many choose to file for personal bankruptcy to avoid paying them. What’s more, there’re business owners who file for bankruptcy strategically since it can help them streamline their debt and start with a fresh look.
In the case of a sole proprietorship, it’s possible to file a personal bankruptcy case under Chapter 7 bankruptcy. The Fair Credit Reporting Act states that a Chapter 7 bankruptcy may remain on your reports for 10 years. As a rule, a Chapter 7 bankruptcy finishes with discharge within 4-6 six months.
What’s more, a bankruptcy can create serious obstacles on your way while trying to get approved for business loans. Lenders will usually require you to wait for 3-7 years after a completed bankruptcy until they’ll decide your eligibility.
The good news is that there’re reputable high risk merchant services providers like First American Merchant that help you avoid headaches. FirstAmericanMerchant.com is a reliable and experienced processor and alternative online lender that’s dedicated to providing the cheapest and the most secure bad credit merchant account to hard-to-approve merchants.
Starting a Business After Chapter 7 Bankruptcy
If you’ve already filed a Chapter 7 bankruptcy, this doesn’t mean the end of the world. You can still launch a new business with a different name and offer similar services. So, let’s see what you should focus on when starting your new business:
1. Discover new insight and lessons, and learn from them
2. Consider a business that doesn’t require a fortune
3. Develop a plan based on pragmatic principles and stick with them
4. Turn to a respectable alternative online lender like First American Merchant (FAM) for fast and easy access to the necessary working capital
5. Have a solid business plan in place that represents your type of business, an analysis of your industry’s profitability and future projections
6. Turn to someone with excellent credit to co-sign for a cheaper loan
7. Request an Employer Identification Number from the IRS (Internal Revenue Service), and ask your local government offices to provide you with the necessary business permits
8. Acquire inventory if you’re selling products
9. Use fliers and online bulletin boards to advertise your business
10. Rebuild your credit through a secured credit card and by never being late on your payments
11. Offer lower cost services to people with bad credit scores and built a loyal client base
12. Focus on 1 thing at a time
To sum up, if you’re having a difficult time paying off your business debts, business bankruptcy might be a way out. To know how to start a new business after Chapter 7 bankruptcy, just go through the points above.Get Started Now