The major fear of many business owners in Tennessee is that after going bankrupt they may not be able to create a new business any time soon, if ever. However, this is not the case at all. It is true that having bankruptcy on your record is going to make it harder to raise money for a new business and that lenders may hesitate to loan you capital. Still, with the right moves, you can get yourself back in the business game sooner than you may think.
Chron.com points out that not all businesses require a lot of financing. In fact, some only need a small amount of expenses from your pocket. This allows you to forego having to convince a bank to loan you money in spite of your bankruptcy. Consider starting up a small business that you can run out of your own home. Generally, businesses such as these include consulting or convenience jobs such as landscaping, pet care or grass cutting.
If you still need money, you can bypass the big lenders in other ways. If your friends or family members are financially able, try approaching them for financing. Be sure to spell out the provisions of the loan, perhaps with a loan contract or with an IOU. Make it clear in the agreement how the loan is to be repaid. Additionally, you can seek out someone with better credit to co-sign a loan with you. Lenders are more likely to provide you with capital if you have someone else on the agreement that can repay the loan.
Your recent bankruptcy may also make it hard to find lenders to finance aspects of your business, such as buying inventory. While some financial institutions offer lines of credit to companies to make inventory purchases, people who have gone bankrupt might not qualify for their terms. However, if you have enough money, you can just pay for the inventory with cash.
Some entrepreneurs may turn to crowdfunding to raise money. However, as Groupon explains, a lot of business crowdfunding campaigns actually do not succeed. You would need to put a lot of work into the campaign and have a strong network of donors to raise the money. You also have to consider what to offer your donors, such as products or financial incentives from the company. Also be aware that many crowdfunding platforms charge fees for what you raise, so do not expect to reap all the money pledged to your campaign.
In spite of the challenges you may face post-bankruptcy, you have no cause to despair. Once your bankruptcy is complete, research your options and look for the best ways to help start your new enterprise.