Small Business Bankruptcy in Chapter 11

Chapter 11 is a type of bankruptcy that allows a business to continue operating while it reorganizes its financial affairs. Chapter 11 is also available to individuals, but not many individuals take advantage of it because it is labor intensive for the attorney and expensive for the client. Likewise for businesses. It is a fact that many businesses have used Chapter 11 to successfully turn around operations, but it remains a a messy, expensive, and time consuming proposition for most businesses.

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What Are the C’s of Small Business Loan Qualification?

When banks start to tighten lending to the small business market, they look to reduce the risk of issuing a small business loan. To qualify, a small business must understand the risk assessment processes bankers use in loan determinations. Bankers making a loan approval will review a small business in the context of the 5 C's for small business loans and credit as follows.

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What About a Private Lender?

It happens everyday. Well-prepared entrepreneurs are walking into the banks with brilliant business ideas backed by well developed business plans — and are walking out empty-handed. Financial institutions are notoriously reluctant to provide debt financing to small businesses unless adequate collateral is available. Fortunately many of these professionals are ultimately able to obtain small business financing from private lenders, such as Tom McKenzie, through business capital brokers.

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