Trends and technology are always changing the landscape for businesses. Learning how to be agile and keep up with these changes can ultimately help businesses succeed. Read on for tips from members of the online small business community on the changing business trends that may impact your small business in 2023.
Maximize Brand Efforts with the Creator Economy
The creator economy continues to grow. And it provides tons of unique opportunities for businesses to grow. But it’s important to fully understand these opportunities in order to make the most of them. Learn how to maximize your brand using the creator economy in this Convince & Convert post by Leanna Pham.
Move Fast Without Blowing Your Budget
If you want to take advantage of new growth opportunities for your business, you need to be able to move quickly. But small businesses often don’t have the resources to adapt as quickly as they may like. Luckily, there are ways to jump on new trends without blowing your budget. Get the details in this ENO8 post by Rishi Khanna.
Make the Most of E-commerce Growth in 2023
E-commerce is a field that is constantly growing and changing. So entrepreneurs in this industry must understand the trends and landscape in order to be successful. In this Tech Magazines post, Amit Gupta goes over the significance and growth of e-commerce in 2023.
Try These 50+ Powerful AI Tools
AI is undeniably having a major impact on a huge array of businesses. So if you want to adapt and keep up with trends, you need to learn about the top AI Tools. This Process Street post by Anna Mazur includes a list of 50+ options. And BizSugar members weighed in on the post here.
Keep Up with New Innovations from OpenAI and ChatGPT
OpenAI has created one of the most innovative AI tools currently available in ChatGPT. And the technology is only getting better. If you want to make the most of these innovations, learn about the various capabilities in this post by Philip Verghese Ariel. Then head over the BizSugar to see what members are saying.
Monitor These Trends in 2023
Keeping up with changing business trends that may impact your small business in 2023, including those in your industry and in the business world, in general, is a huge part of entrepreneurship. Since these concepts are constantly changing, it can help to rely on expert advice and projections. Read this SMB CEO post by Ivan Widjaya for insights on five trends small business owners should be aware of this year.
Tailor Content to Individual Users with Social Media Hyper-Personalization
Personalized content is becoming increasingly essential for businesses looking to connect with customers online. Luckily, there are methods and tools that can help you deliver precisely the insights that different consumers and followers are interested in. This Bulkly post by Alexis Chamberlain features a guide on this subject.
Include Rich Content in Your Social Media Strategy
Social media has long been known for short posts and simple photos. But many entrepreneurs are finding success with content that goes even deeper. Learn how rich content can benefit your business in this Strella Social Media post by Rachel Strella. Then check out BizSugar for some community insights. ??
Improve Your YouTube Video Rankings
Video content is becoming increasingly important for online businesses. But YouTube is still the top platform that companies need to focus on. If you’re ready to improve your rankings and get more reach on YouTube, this Platter of Gold post by Clara Jordyn is for you.
Check Out This New AI Video Generator
AI is also making a mark on video content. If you’re ready to combine these two types of technology to improve your strategy, a new tool may help. Read more about it in this Lion Blogger Tech post by Lahaul Seth.
If you’d like to suggest your favorite small business content to be considered for an upcoming community roundup, please send your news tips to: sbtips@gmail.com.
The recent Maui wildfires devastated the local community in many ways. Though business closures are not among the most important factors, these companies do play a major role in supporting the local community. So, the county and state are working out details for a new grant program to support affected businesses. Read on for more about this small business grant program and others throughout the U.S.
West Maui Small Business Recovery Grants
Officials in Hawaii are proposing a grant program to support businesses affected by the recent fires in Lahaina. The program would include $25 million, with the state contributing $10 million, the county providing $5 million, and the rest coming from the Maui Strong Fund administered by Hawaii Community Foundation. Small businesses that were affected by the fires could receive $10,000 payments. And larger companies could receive $20,000 to cover various expenses like employee wages and lease payments. Officials are still working out the details but are eying October as a soft “re-opening” of West Maui to visitors.
SoBuf Biz Grant Program
The SoBuf Biz Grant program is currently accepting applications from small businesses in South Buffalo. The program will provide grants of up to $5,000 to eligible businesses. To qualify, businesses must have 25 or fewer full-time employees and have been in business since at least March 1, 2020. Additionally, businesses in the city of Buffalo’s South Common Council District that have faced economic hardship due to the pandemic will receive priority. The program is awarding grants on a first come, first served basis.
Activate Oakland Grant Program
The city of Oakland, California and Visit Oakland are launching a new program to support small businesses and spur the local economy. Activate Oakland will give small businesses and organizers up to $20,000 to create free events to draw crowds into the city and to their businesses. A total of $400,000 is available through the program. Eligible events include free exercise classes, movie nights, pop-up shops, or even block parties. October 12 is the deadline to apply.
Utah STEP Grants
Utah recently received $500,000 from the SBA State Trade Expansion Program (STEP) Grant. In partnership with the Governor’s Office of Economic Opportunity, World Trade Center Utah will administer those funds to small businesses in the state that are looking to expand into global markets. The reimbursement grant program can cover various costs related to global expansion, including international business trips, trade shows, compliance testing fees, export training programs, and international marketing.
York BLOOM Grant Program
The York County Economic Alliance in York, Pennsylvania, recently unveiled the 2023 City of York BLOOM Grant Program. Eligible businesses can apply for grants of between $500 and $1,500 to cover various growth or productivity improvement expenses. The program will prioritize businesses that have not received funding from previous BLOOM grant programs and businesses owned by Veterans, Women, or Black, Indigenous, or People of Color. The BLOOM grant program originally launched back in 2018 and has since awarded 191 grants worth $422,978.30. October 13 is the deadline for the current round of applications.
Grow Seneca Grant Program
Seneca County, New York, recently announced its new Grow Seneca Grant Program. The program includes $500,000 in federal American Rescue Plan Act funds. Eligible businesses can apply for up to $10,000. Applications are currently available online and will be overseen by the Grow Seneca Committee. Businesses can apply now through November 22.
According to the latest data from the Adobe Digital Price Index (DPI), online prices for August 2023 experienced a sharp 3.2% decrease year-over-year (YoY), reaching their lowest in over three years. This dip has been consistent for the past year, with 12 straight months of YoY price reductions. Small business owners leveraging e-commerce platforms should be aware of the significant pricing shift.
This downward price trend isn’t uniform across categories. Key areas such as sporting goods, appliances, and home/garden products saw significant YoY price drops. Particularly, electronics, a popular category among consumers and one often capitalized upon by small businesses dropped a substantial 11.6% YoY. With such a profound decrease in electronic prices, small businesses in this sector might need to reconsider their pricing strategies to remain competitive.
However, it’s not all doom and gloom. On a month-over-month (MoM) basis, there was a slight uptick. August saw a 0.4% increase in online prices from the previous month. This post-Prime Day rise, a significant e-commerce event with extensive discounting, indicates that promotional days can still stimulate spending, a takeaway for businesses to consider in their sales strategies.
Interestingly, while most categories are experiencing a drop, online grocery prices defy the trend. Although YoY increases have been slowing down, they’re still on the rise, with a 5% jump in August. This is noteworthy for small businesses in the grocery sector as more consumers transition to online shopping for their essentials. Despite the online price deflation, it’s a domain still ripe for innovation and growth.
Similarly, the pet product industry, a burgeoning online market, has been resilient. August 2023 reported a 5.5% YoY increase, although this growth rate has slowed since its peak in August 2022.
Another critical point for small enterprises, especially those in the appliance sector, is the YoY price dip of 7.3% in August. After a record low in June 2023, appliance prices have been falling for nearly a year. This trend follows an opposite nearly two-and-a-half-year period of consistent increases. Therefore, businesses in this niche need to be adaptable, perhaps looking into value addition or bundle offers to attract customers.
But why does all this matter to small business owners? The Adobe DPI, considered an authoritative guide on online pricing, offers insights parallel to the Bureau of Labor Statistics’ Consumer Price Index. This information, derived from over a trillion visits to retail websites and more than 100 million product listings across 18 categories, can be pivotal for small business owners. In the rapidly evolving online market, understanding price trends can aid in making informed decisions, whether it’s in product procurement, pricing, or marketing.
For businesses involved in online retail, it’s crucial to stay updated and flexible. Trends like these provide an overview of the market and can be leveraged for strategic adjustments, ensuring that businesses remain relevant and competitive.
While the overarching trend is toward online price reduction, individual categories move differently. Small business owners need to be astute, adjusting their strategies based on their specific industry trends, and the Adobe DPI can be an invaluable tool in this endeavor.
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An outdoor storage shed is a convenient and inexpensive way to get yourself some extra space. If your storefront, garage, or building doesn’t have quite enough storage space for your needs, you can get a weather-resistant shed that goes outside, is out of the way and secured.
Storage sheds come in many different sizes and materials. How much storage space you need and how much space you have for a shed will determine what type you should get. One consistent factor, though, is weather resistance. Most storage sheds are made from heavy-duty plastic, wood, or metal. These materials can withstand the elements, with some performing better than others in extreme weather. Consider the normal conditions in your location – then determine what material would work best for you.
Why Do I Need an Outdoor Storage Shed?
As we mentioned before, an outdoor storage shed provides space to store items that you don’t need all the time, that are too large to store inside, or that you don’t want to have exposed. Here are some examples:
Seasonal Items– Where do you put your tree, decorations, and other seasonal items when they’re not in use? Or snow shovels? A storage shed will keep these items safe and out of the way until it’s time to use them again.
Outdoor Tools – Storage sheds are popular places to keep yard tools and machinery. Most sheds also have a place to put a padlock, so you can lock up your items.
Trash Can Storage – If you don’t want your trash cans visible, a storage shed is a great place to keep them until it’s time to put them out. This way they’re not an eyesore on your property.
Extra Workspace – Some sheds are quite large – large enough to provide space for doing some work. “She-sheds” and the like have become popular ways to give yourself some extra (and private) space to work on projects while keeping your supplies organized and nearby.
Inventory and Equipment: For businesses that require storing extra inventory or specialized equipment, an outdoor storage shed can offer the perfect solution. This prevents cluttering your main workspace and helps in maintaining a clean and efficient environment.
Safe Storage for Valuable Equipment: Those in the landscaping, construction, or event planning sectors can relate to the challenge of storing large, expensive machinery or equipment. An outdoor shed not only offers ample space but with the ability to padlock, it ensures the safety of these valuable assets.
On-site Storage: For businesses operating on large properties or multiple sites, having an on-site storage solution is indispensable. It means quicker access to necessary tools without the need to transport them back and forth.
Versatility: Many modern sheds can be customized to fit the specific needs of a business. Whether it’s added shelves for organization, or a space that can double as a workshop, the possibilities are vast.
Aesthetics and Professionalism: Having a dedicated space to store items keeps a business area looking tidy and professional. First impressions count, and a clutter-free environment can make a significant difference.
Outdoor Storage Sheds: Top Picks From Amazon
An outdoor storage shed gives you options for storing things that don’t fit or you don’t want in your storage space. It can also provide a place to keep unsightly items such as trash cans. Regardless of how you use it, you can definitely benefit from having outside space to keep items out of the way. We searched through Amazon to find the best outdoor storage shed options for your business. Check out our picks below for assistance in your search for the right storage shed for your business.
Top Pick: Our best find was the resin outdoor storage shed by Rubbermaid. Rubbermaid is, of course, an industry leader in heavy-duty plastic items such as trash cans, storage bins, tool racks, and much more. Their large 7′ x 7′ storage shed has plenty of room for storing large equipment, and its durable construction will ensure your items stay protected. The wide double doors will provide you with easy in and out, and you needn’t worry about damage from rain, wind, or snow due to its weather-resistant design.
Runner Up: Next on our list is the Premier Tall storage shed from Keter. It has a generous 62 cubic feet of storage space, plus brackets to add shelving if you want. It has sloped flooring so you can easily roll things in, heavy-duty metal hinges, and is compatible with padlocks. This storage shed is made from durable resin.
Best Value: As far as storage space for the price, this steel storage shed is the winner. With roomy 7′ x 4′ dimensions, water-resistant galvanized steel construction, and 4 ventilated windows, your stored items will stay protected, dry, and free of mold or rust. You can also lock the door with a padlock to secure the shed.
Although pricey, this 8′ x 10′ shed is so large it could be used as a small studio or she-shed! It features skylights to allow in natural light, a reinforced floor, and a padlock hasp that allows doors to lock securely.
This wood storage shed is made in the USA of natural pinewood and will withstand nature’s harshest conditions. Its dimensions are 10 ft. x 10 ft. x 7.5 ft, and it has double doors for loading and unloading wide items and windows to let in natural light and air. The manufacturer offers assembly instructions on their website; please note that the floor for this shed kit must be purchased separately.
For a small storage shed option, check out this 5′ x 3′ alloy steel model. This shed features water and moisture-resistant overlapping walls, a sloped roof, and pad-lockable doors. This shed is large enough to store items but small enough to not take up a lot of space.
This company’s metal storage sheds are made with galvanized steel and feature four vents and lockable double doors for better airflow and security. The roof has a sloped design to prevent rain and snow accumulation. This particular shed is 10 x 12 ft, making it a great option if you need a lot of storage. Additionally, the company states their shed has fewer pieces and is easier to put together than others.
Another Rubbermaid option, this one is a vertical shed that’s perfect for yard tools. It’s made of the same heavy-duty resin plastic as the other Rubbermaid storage shed in our article, but with a slim design for a smaller footprint. It is mentioned that this shed is very easy to assemble.
This vertical shed is slightly larger with more storage space than the Rubbermaid option above, but it is also made from weatherproof resin. It offers 53 cubic feet of storage space and has rotating hinges, a padlock space, and strong double-paneled walls.
Last on our list is this 6×4 ft metal storage shed. Comprised of alloy steel, this shed promised to keep your items secure and safe from the elements. It features reinforced beams, a tilted entrance, and a double handle.
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Paper shopping bags, particularly ones with handles, are convenient and environmentally friendly items your customers will appreciate. Paper shopping bags are most often made from kraft paper, which is durable and can generally support more weight than plastic bags. They’re also biodegradable, reusable, and recyclable. Furthermore, they present less of a suffocation risk for children and small animals.
Paper shopping bags have been gaining momentum in the business world, and for good reason. Entrepreneurs and business owners are constantly on the lookout for solutions that are not only efficient but also eco-friendly. If you’re in a business where packaging plays a pivotal role, here are some key advantages of using paper shopping bags:
Benefits of Paper Shopping Bags for Businesses:
Branding Opportunity: Customize these bags with your logo or business name. This not only acts as a free advertising medium every time a customer walks out of your store, but it also promotes a green image of your brand.
Cost-effective: In bulk, paper bags can be more cost-efficient than their plastic counterparts, especially when factoring in environmental costs. Plus, many customers are willing to pay slightly more for environmentally conscious packaging.
Versatility: Suitable for a range of products, from clothing to groceries. Their strong design ensures that products remain safe and undamaged.
Enhanced Customer Experience: Offering a durable and eco-friendly packaging solution can enhance the shopping experience for environmentally-conscious customers.
Reduced Environmental Impact: Unlike plastic bags, paper bags break down faster, meaning they won’t linger in landfills for centuries.
Paper Shopping Bags for Your Business
Check out our picks below for the 10 best paper shopping bag options from Amazon and Etsy. You’re sure to find something that will meet your needs. And remember, if you’re getting the bags personalized with your name or logo, be sure to communicate with the seller so you’re getting exactly what you want.
Prime Line Packaging Black Gift Bags with Handles
Top Pick: Each of these black paper shopping bags measures 16″ wide by 6″ deep by 12″ tall. They are made from 80% post-consumer waste premium recyclable 120 GSM printed Kraft paper and can hold several pounds. They come in a pack of 100 bags, meaning you’ll have plenty in stock when you need them.
Runner Up: PTP Bags offers their paper shopping bags with handles in several different sizes and in packs of 50 or 100. The bags are natural brown Kraft paper color and are made from 110GSM high-density weighted paper stock specifically designed to hold weight. The handles are reinforced, too, for extra durability.
Best Value: This Amazon seller offers a 120-piece set of different-sized shopping bags with handles. The bags come in sizes 5.2″x3.5″x8″, 8″x4″x10″, 10″x5″x12.6″, with 40 of each size. They’re made from 120 gsm paper, which is durable, recyclable, and compostable.
Best Customizable: There are multiple size and quantity options for these shopping bags, which can be personalized with your business name. They’re made from 230gsm paper and have rope-style handles. Printing is listed as one-sided and one-tone, but it is noted that the seller can be contacted for other options. This particular Etsy seller has consistently positive reviews.
These bags are not the usual kraft paper. They are made from glossy white paper that stands out and looks upscale. You can also get these bags personalized with your business name on them. The bags, which measure 9-1/2″ x 4″ x 7-1/2″, are available in packs of 100.
If blue is your color, check out these navy blue paper shopping bags with handles. These recycled bags are made from 110g basis weight kraft paper with reinforced handles and a reinforced bottom. The bags measure 16″x 6″x 12″ and can hold up to 13 lbs.
These black gift bags are 8×4.75×10 inches and can handle a weight of up to about 12 lbs. They say “Thank You” in gold foil font, which sends a nice message to your clients. These bags are made from quality kraft paper and come in packs of 50.
You can choose from packs of 30, 75, or 100 of these shopping bags with handles. There are 4 different sizes in the pack – small, medium, large, and extra large which can hold up to 3 lbs., 6 lbs., 8 lbs., and 10 lbs. respectively. Also, they have a reinforced folded bottom for extra support.
Brown Kraft Paper Shopping Bags with Custom Logo Printing
These customizable bags come in packs of 100 or 250. The seller will print your logo on the bags or they can be purchased plain. The bags, which come in 5 different sizes, are made from premium recycled brown kraft paper.
The extra large (10″x6.75″x12″) design of these kraft shopping bags is slightly bigger than most. They are made from 60 basis weight paper and are 100% compostable. The bags come in a pack of 100, the handles are tucked into the bags for easy storage, and the bag bottom is reinforced and square.
This is a pack of 200 shopping bags, each 14″x10″x15.75″. The bags are made from 100% recycled kraft paper with a carrying weight of about 17.5 lbs. The handles are made from twisted paper for easy grip.
These plain black paper shopping bags come in several different quantities, from as low as 20 to as many as 360. The bag dimensions are 10.5″ tall x 8″ wide and 4.25″ deep and they are made from recycled kraft paper. The bags have tested to be able to carry about 16 lbs.
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“Can I still qualify for business loans after bankruptcy?”
It’s a question small business owners and aspiring entrepreneurs who have suffered that fate may ask when looking for financing. If you want a fresh start, a past bankruptcy need not be a life sentence. It is possible to get approved for a business loan after bankruptcy.
Realistically, it will require you to put together a strategy and expend extra effort. And it may take a while and involve a series of baby steps, but in time it is possible to overcome the effects of bankruptcy on your financial prospects.
A bankruptcy will stay on your credit history for 10 years in the case of Chapter 7 and seven years from the filing of Chapter 13. Also, expect your score to plummet — 130 to 240 points depending on your credit score, according to a FICO scoring model. Nevertheless, you can take action to improve your chances of getting that business loan or find capital from alternative sources.
Here’s a nice companion piece from Finance Agents about how to get a business loan with bankruptcy:
How Do I Get a Business Loan After Bankruptcy?
Getting a business loan following a Chapter 7 bankruptcy or Chapter 13 bankruptcy will be tricky, especially in the current economic environment. The following strategies can help:
1. Get a Secured Credit Card
Secured credit cards require a cash payment as collateral (That’s why they’re called “secured.”) That deposit serves as your line of credit. While it’s not the ideal, secured cards are a way to rebuild your credit and have the functionality of a credit card for purchases.
2. Pay Your Bills on Time
We cannot overstate the importance of paying bills on time. It has the greatest impact on your credit score of all the contributing factors. If you do it long enough, you prove to lenders that you can manage your finances and stay out of trouble.
3. Consider Alternative Lending Options
Banks and other traditional lenders may be reluctant to offer a loan after bankruptcy — federal and state regulators tie their hands. One option is alternative lenders that provide term loans and lines of credit, albeit at higher interest rates and fees. Your chances of getting small business loans for bad credit are higher; just understand the risks and potential liability if you’re unable to make payments.
Revenue-based financing, such as merchant cash advances or invoice factoring is another option — so long as your business is bringing in solid sales. These financing sources generally aren’t that concerned with your credit score, although they may run a soft credit check on your personal or business credit.
Asset-based loans are yet another option worth considering, particularly when approaching a bank.
“Traditional lenders are going to look to cash flow, assets, or some type of security,” said Luis Salazar, a bankruptcy attorney in Miami, Florida, in an interview. “The best security is a strong piece of collateral that you know you could sell to recover your loan.”
Another option, crowdfunding, isn’t dependent on credit scores, but you’ll need to invest in a marketing campaign or have a loyal customer base willing to pitch in.
4. Get a Cosigner
Some lenders allow you to apply for a loan using a cosigner. The risk to the cosigner is that they become responsible for the loan if you fail to make payments on time or, worse, default. Also, they receive no benefits to their credit if you repay on time. Make sure the person understands those risks before signing on the dotted line.
5. Present a Business Plan
Hari R. Ender, a bankruptcy attorney writing for Nolo.com, said, “Before you try to get credit for your business, make sure you have a solid, organized business plan to present to potential lenders. The industry in which you are seeking a loan might also make a difference as to your success.”
6. Share Bankruptcy Details with Lenders
Marina Vaamonde, a commercial real estate investor in Houston, Texas, advises business owners to create a timeline accompanied by a set of factual documents that will allow them to share their bankruptcy story.
“Include an overview of how and why you fell into bankruptcy,” she said. “Have a detailed explanation with examples of how you have been managing your business and finances after the bankruptcy. The presentation should allow the lender to learn more about your situation and have a more positive impact on your application.”
There is a place on your credit report to submit a brief explanation of what major event caused your financial difficulties and how it is different now. Typical causes are divorce, hospital bills, extended illness, or a car accident.
7. Avoid ‘Reaffirmation Agreements’
You may volunteer to make repaying your creditors part of the contract — a “Reaffirmation Agreement” — even if you can discharge your debt. Salazar says that’s a bad idea that you should avoid.
“I’ve often had clients say they want to include paying certain creditors back as part of the terms of the bankruptcy,” Salazar said. “I tell them, you can always voluntarily pay someone back, but don’t file bankruptcy and make an agreement that you will pay them back, even though you feel an emotional and moral obligation. If your fortunes turn, you can always send money, but don’t agree to do that in the contract.”
8. Keep Your Credit Debt Level Low
Keep your revolving credit debt as low as possible — below 20% is best — to show that you are not overextending and can afford to make payments. Also, keep in mind that your personal credit affects business borrowing. (That’s especially true for minority business owners who rely heavily on personal scores.)
“If you are cash poor, make sure you don’t take on more loans post-bankruptcy, as it could hurt you,” said Leslie H. Tayne Esq., founder and head attorney at the Tayne Law Firm, in an interview. “Following bankruptcy, it’s not unusual to get credit card offers. Don’t put your personal credit on the line by taking everything you can and maxing out your available credit.”
She added that lenders will look at your personal credit report to see if you have been managing your finances responsibly. “A credit report tells a lot about a person,” Tayne said. “Getting over-extended again could demonstrate a pattern of behavior, making it harder to get a loan.”
9. Go the Friends and Family Route
If you are still having trouble getting a loan after bankruptcy, consider turning to friends and family. The Federal Reserve Bank 2020 Small Business Credit Study (PDF) found that 56% of business owners have relied on friends or family, as well as personal funds — the biggest source of financing — to finance their enterprise in the last five years.
If you decide to go that route, find someone with good credit who can add you as an authorized user to his or her account. Your credit use gets reported in both your name and the primary account holder’s name. Also, you may be able to get a friend or family member to cosign on a loan. Just make sure they understand the risk.
10. Bide Your Time
Our last piece of advice is to wait. It takes up to 10 years to discharge a bankruptcy. If you can’t wait that long to apply for a business loan, you may have to hold off at least a year and likely longer. Even alternative lenders require a waiting period before they will consider making a loan. SmartBiz, for example, requires a three-year waiting period while Funding Circle mandates seven. Some, like OnDeck and DealStruck, are more lenient. They only need a two-year waiting period.
This table provides a concise overview of the strategies for getting a business loan after bankruptcy, allowing for easy comparison and decision-making:
Strategy
Description
Additional Notes
Get a Secured Credit Card
Requires a cash deposit as collateral, which serves as your line of credit.
Helps rebuild credit.
Pay Your Bills on Time
Consistent and timely bill payments can significantly boost your credit score.
Proves responsible financial management to lenders.
Consider Alternative Lending Options
Alternative lenders may offer loans despite bankruptcy, often at higher interest rates and fees.
Options include revenue-based financing, asset-based loans, and crowdfunding.
Get a Cosigner
A cosigner can bolster your application but bears the risk of loan default.
Cosigners won’t benefit credit-wise from timely repayments.
Present a Business Plan
A robust and organized business plan can persuade potential lenders.
Some industries may be more favorable for loan approval.
Share Bankruptcy Details with Lenders
Share a detailed timeline and explanation of your bankruptcy story.
Helps lenders understand the circumstances that led to bankruptcy.
Avoid ‘Reaffirmation Agreements’
Voluntary agreements to repay certain debts during bankruptcy.
Advised to avoid; can always repay without formal agreement.
Keep Your Credit Debt Level Low
Aim to keep revolving credit debt below 20%.
Overextending post-bankruptcy can be seen as a pattern of poor financial behavior.
Go the Friends and Family Route
Consider loans or assistance from close acquaintances.
Many business owners rely on personal connections for initial financing.
Bide Your Time
Waiting periods apply post-bankruptcy before loans are considered.
Varies by lender; from 1-10 years depending on the institution.
FAQs About Bankruptcies and Loans
The above points will help you create a strategy to get a loan after bankruptcy and improve your credit scores. The answers to the following frequently asked questions provide additional information about the impact of bankruptcy on business loans:
Can you get new business loans while still in Chapter 13?
Getting a business loan while in Chapter 13 bankruptcy will be tough, but not impossible. The Bankruptcy Code allows you to incur certain types of new debt, but you will need to get the court’s permission and be current on your plan payments.
What happens to my existing business loan if I file a Chapter 7 or Chapter 13?
Filing Chapter 7 bankruptcy discharges any personal liability for the business loan but not the debt itself. The reason is, unless you are a sole proprietor, the business is a separate legal entity and remains responsible for replaying the obligation.
A small business set up as an LLC or corporation cannot file Chapter 13 because it is for personal use only. Sole proprietors can file Chapter 13, however, and reorganize and pay back both their personal and business debts, including loans.
Can I discharge an SBA loan in bankruptcy?
Many people mistakenly believe that because the SBA is a federal agency, loans are not dischargeable in bankruptcy. The truth is, you can discharge an SBA loan. There is a catch, however. If you pledged any assets as collateral, bankruptcy would not remove the lien, and the lender can foreclose on or repossess that property.
