Rebuilding after bankruptcy isn’t easy—but it is possible. If you're researching how to get a business loan after bankruptcy, you're already taking the first step toward financial recovery. Whether your bankruptcy was caused by medical bills, the pandemic, poor partnerships, slow sales, or simply a tough season of life, you’re not alone. Millions of Americans file for bankruptcy each year, and many of them go on to launch successful businesses and secure new funding.
This comprehensive, expert-level guide explains exactly how to qualify for business funding after bankruptcy, what lenders look for, which financing options are most accessible, and what steps you can take right now to dramatically increase your approval odds.
By the end, you’ll fully understand your loan options—and you’ll feel empowered to take your next steps confidently.
Bankruptcy filings surged between 2023 and 2025 due to rising interest rates, inflation, and decreased consumer spending. As a result, many new and established entrepreneurs are wondering:
“Can I get a business loan after bankruptcy?”
“Do lenders still approve borrowers with bad credit?”
“Is funding possible for startups after bankruptcy?”
The good news: YES. There are more funding options than ever before—and lenders have become increasingly flexible, especially in the online lending and alternative lending markets.
The simple answer is yes—you can absolutely get a business loan after bankruptcy. Whether you filed Chapter 7, Chapter 11, or Chapter 13, dozens of lenders still offer funding based on:
Business revenue
Cash flow
Collateral
Time since discharge
Improvements in credit
Documented financial stability
Bankruptcy makes the process more challenging, but it doesn’t eliminate your options. Many lenders specialize in "credit recovery" borrowers, and some programs are designed specifically for entrepreneurs rebuilding after financial hardship.
Each bankruptcy type has different waiting periods before most lenders will consider you.
Typical waiting period: 1–2 years after discharge
Many alternative lenders approve earlier depending on revenue
You can sometimes obtain a business loan during the repayment plan, but you will need trustee approval
Easier approval once the plan is completed
Waiting period: 6–12 months after reorganization
Faster approval if the business has demonstrated stable cash flow
A dismissal indicates failure to complete the bankruptcy, which can look riskier than a discharge. Many lenders impose longer waiting periods.
To increase your chances of approval, it helps to understand what lenders look at.
The older your bankruptcy, the lower your perceived risk.
Although bankruptcy damages personal credit, lenders analyze your:
Post-bankruptcy payments
Credit utilization
Open accounts
Length of credit history
Many borrowers forget that business credit is separate from personal credit. Lenders review:
Experian Business
D&B PAYDEX
Equifax Small Business
Lenders will examine:
Monthly revenue
Annual gross income
Cash flow consistency
Profitability
Existing business debt
Bankruptcy reduces trust, so lenders may require:
Equipment
Vehicles
Accounts receivable
Inventory
Real estate
The odds of approval increase dramatically for businesses older than two years.
Below is the full list of loan types that are accessible even with a past bankruptcy.
Online lenders rely heavily on cash flow—not credit score.
Best for: Borrowers with steady revenue
Approval time: 24 hours to a few days
Pros:
Minimal credit requirements
No collateral needed
Fast funding
Cons:
Higher interest rates
Shorter repayment terms
MCAs offer financing based on daily credit card sales. They rarely deny borrowers because of bankruptcy.
Pros:
Fast approval
No credit score requirements
Easy qualification
Cons:
Expensive
Daily or weekly withdrawals
Great for recurring or flexible expenses.
Pros:
Borrow only what you need
Creates a financial cushion
Cons:
Lower limits if you have bad credit
Equipment serves as collateral, lowering lender risk.
Pros:
Bankruptcy-friendly
Competitive rates
Builds business credit
Cons:
Equipment can be repossessed
Nonprofits, community lenders, and the SBA Microloan Program are designed to help borrowers rebuilding credit.
Pros:
Lower rates
Flexible qualification
Borrow up to $50,000
Cons:
Smaller amounts
For businesses that invoice clients.
Pros:
Borrow based on your invoices
Low credit requirements
Cons:
Only works for B2B businesses
SBA loans require stronger credit and more time after discharge, but many borrowers qualify within 1–3 years.
Pros:
Low interest rates
Long repayment terms
Cons:
Strict requirements
Lengthy application process
While some lenders approve borrowers immediately after discharge, the best loan programs require stronger credit. Here’s how to boost your credit quickly and effectively.
Dispute errors immediately.
35% of your FICO score depends on payment history.
Aim for under 10–30%.
These help replace the negative bankruptcy entries.
Options include:
Secured credit cards
Credit-builder loans
Store credit accounts
Net-30 vendor accounts
Piggyback on someone else’s clean credit history (only with permission).
Post-bankruptcy lenders monitor patterns.
Even if your personal credit isn’t perfect, your business credit can be strong. This is especially important because some lenders rely on business credit instead of personal credit.
Register your business (LLC, EIN)
Open a business bank account
Apply for net-30 accounts
Pay vendors early
Use business credit monitoring tools
Strong business credit can outweigh personal bankruptcy for many lenders.
Being organized helps lenders feel confident in approving you. Gather:
Bankruptcy discharge papers
Personal identification
Last 3–12 months of business bank statements
Profit and loss statements
Personal tax returns
Business tax returns
Detailed business plan
Balance sheet
Cash flow projections
Lenders reward borrowers who appear well-prepared and financially stable.
Your business plan should answer the lender’s biggest question:
Use your plan to show:
How you’ve corrected past financial issues
Why your business is stable today
How the loan will generate additional revenue
Your financial projections
Your repayment strategy
This builds lender confidence—even more than credit scores do.
1. Check credit.
2. Rebuild positive credit lines.
3. Boost business revenue.
4. Prepare financial documents.
5. Compare lenders.
6. Apply with strong business plan.
7. Accept loan terms.
Interest rates depend on:
Time since discharge
Lender type
Business revenue
Collateral availability
Typical ranges:
Online loans: 12%–45%
Microloans: 6%–18%
Equipment financing: 6%–30%
SBA loans: 6%–11%
MCAs: 30%–100%+ cost of capital
Rates decrease dramatically as your credit improves.
Avoid these pitfalls:
Applying to too many lenders → lowers your score
Taking high-interest loans without reviewing terms
Not rebuilding credit first
Hiding bankruptcy details
Inconsistent bank activity
Not having a business plan
Missing documentation
Letting personal and business finances mix
No. Chapter 7 stays for 10 years; Chapter 13 stays for 7 years.
Yes—it shows up anyway. Transparency helps you gain trust.
Yes. Merchant cash advances and some revenue-based lenders do not require credit checks.
Not necessarily—many bankruptcies only affect personal credit.
Yes, but microloans, equipment financing, or personal investments may be required at first.
Here’s your success blueprint:
1. Rebuild credit for at least 3–12 months.
2. Keep your business bank account active and healthy.
3. Boost revenue consistency.
4. Build trust with lenders through transparency.
5. Start with microloans or equipment financing.
6. Move on to lines of credit and online term loans.
7. Eventually qualify for low-rate SBA loans.
This roadmap has helped thousands of entrepreneurs rebuild successfully.
Getting a business loan after bankruptcy is absolutely possible when you know where to look, what lenders require, and how to present your financial story. With the right preparation, you can rebuild your credit, strengthen your business finances, and secure the capital needed to grow—even after financial hardship.
Remember: Bankruptcy is a reset, not the end. Your entrepreneurial future is still wide open.
Ready to rebuild and secure funding after bankruptcy? Contact us and take the next step toward growing your business with confidence.