Q: I have a question about SBA qualifying: 3 years ago I sold a very successful post production business. The sale was due to a horrific partnership. The buyers bankrupted the business and I never got released from my largest debt, which was about 700,000. In the end I had to claim bankruptcy. What are my chances of getting an SBA loan for another business and what will it take for me to convince them that I can do it again?

A: I’m sorry to hear about your past experience and I won’t spend any time discussing what you could have done differently; I’m sure you’ve beat yourself up enough already and I have the world of admiration for you for dusting yourself off and not being deterred. You are a true entrepreneur and you will succeed! I wish I had good news for you with potential lenders. From my experience,

a bankruptcy will all but nullify your qualifying for any type of SBA or traditional bank type loan.

However, this should not preclude you from being able to acquire a business.

Your best option, without question (and one I always recommend even if you have flawless credit) is to negotiate seller financing.

It may not be available in every case. It may require you to search a little longer, but I promise you that these deals are done everyday and in the vast majority of cases. In fact, without trying to sound like an infomercial, over 90% of our clients negotiate seller financing. This is undoubtedly the tact I would take in your situation. Get back into business. Negotiate the best deal possible.

Build your business again and improve your credit.

Once you do, the lenders will be banging down your door but then again, you may never even need them!