Business Bankruptcy – Starting Over
Starting a business is difficult in its own right, so it should come as no surprise that starting a business after having filed for chapter 7 bankruptcy, comes with its own unique set of challenges. Having said that, businesses in the United States fail all the time and business owners start over just as frequently. This goes to show that although there may be more hoops to jump through after an initial business failure, it is certainly not impossible to start over after bankruptcy.
Each business bankruptcy situation is unique and, therefore, what works for one individual may not work for another. The best way to know for sure what course of action is best for you is to work closely with an accountant, credit counselor, or bankruptcy attorney. Keeping this in mind, here are a few suggestions for ways to start building again after bankruptcy.
Bankruptcy stays on your financial record for 10 years, however after about 3 or 4 years some creditors may be willing to loan money with much higher interest rates.
This 3 to 4 year period can give you a chance to recover a little financially and to save up some capital to strengthen your case to lenders.
This also gives you time to come up with a solid business plan complete with industry analysis and future projections. All creditors will want to see a well thought out business plan before lending money, especially if the person they’re lending to has a less than perfect financial history.
Consider having a friend, family member, or business partner with a good credit rating cosign a loan with you. This person will most likely want to see your business plan as well to ensure they aren’t taking too much of a risk with their own credit line.
Reflect on what went wrong with your last business and the steps you can take to ensure success. Often times we are inclined to blame outside sources like the economy or location for the failure of a business. While these factors may have played a role in the demise of your business, it’s important to be self critical and aware of your past mistakes in order not to repeat them.
Work with a liquidation company like Ideal Trading to find bargains on used stock, excess inventory, and preowned equipment. This helps in startup costs because you’re not paying full price for anything.
The biggest factor in starting over is perseverance. Having the confidence to start over is half the battle and by working with a skilled accountant and a professional liquidation company you’re setting yourself up for success.
For more information on the liquidation services offered by Ideal Trading like appraisals, estate sales, and auctioning please visit our website here. Or to contact us please fill out the Quick Contact form to the left hand side of your screen.