For reasons I'm sure no one is interested in, I filed for ch.7 bankruptcy at the age of 23 in 2011. It was discharged and since then I started my own business. It's an extremely cash intensive business and regardless of how much I deposit per month, the only kinds of loans my business seems to qualify for are the ones that might have me "swimming with the fishes" because "Tito" wants his money. Example: "borrow $100,000 and pay back $140,000, automatic withdrawals from your account for 100 business days". That's over $30,000 a month for 4.5 months. It's gonna cost me $40,000 to borrow $100,000 for four months? Why not just UCC my left kidney as collateral? Queue "The Godfather" theme song. I understand that ch.7 discharges typically take 10 years to fall off but if I could just get another chance to prove myself, I can grow this business so much greater, pay so much more tax, be so much more valuable to this economy. I didn't roll over and get a job serving tables wondering if my $500 Macy's Card would rebuild my credit. I changed my life. Have me again America, I'm begging you. There must be some individuals here that had success removing their discharge before a decade was up.
I do have a pending SBA loan application that I'm waiting to hear back from. If it does not go through, would someone explain to me the math of these types of working capital loans? They obviously exist and are still in business because people do take them and do pay back right? How are these borrowers making it happen? If my monthly deposits are $100K, but my expenditures are $90K, that only leaves me with $10K. "Tito" will take $30K. That leaves me negative -$20K. By the fourth month I'd be overdrawn or delinquent whether it be with "Tito" or otherwise. I feel like I'm missing something here, that it is possible and I'm not gasping what "working capital" really means. Or maybe my instincts are right and Tito is out to shut down businesses nationwide. Any advice or thoughts would be appreciated.
6 years is a long time ago on credit... what have you done to rebuild your personal credit?
After 5 years you usually have access to Amex again, Chase, well really everyone if you have built your credit since the BK
I have an Amex Platinum (business) that doesn't report to personal credit, and on personal I've got 2 credit cards, one with a $7200 limit and the other with a $4800 limit. I have a $70,000 vehicle purchase that I've paid down to $39,000 as well for auto loan. I had a foreclosure with my bankruptcy and do not currently have a mortgage. I'm renting. Because the business is so cash intensive I haven't been able to keep a zero balance on my personal credit cards, they will most likely not give me an increase. Chase is actually who my foreclosure was through in my chapter 7 and even though I bank with them, they have turned me down for credit cards numerous times.