Having a bankruptcy in your history doesn't automatically disqualify you from securing a small business loan, but it can make the process more difficult. Not all lenders have the same criteria, but most will expect at least a year of positive credit history after the bankruptcy is finalized before considering approval.

Collateral refers to an asset or property that a borrower offers to secure a loan. If the borrower fails to repay the loan, the lender can seize the collateral to recover the funds. Common forms of collateral include real estate, equipment, inventory, or personal assets.

A personal guarantee is a commitment by the business owner to personally repay the loan if the business is unable to. This means the owner's personal assets, such as their home or savings, could be used to satisfy the debt if the business defaults on the loan. It gives lenders additional security, especially for newer or higher-risk businesses.

While not all lenders require a business plan, having one can significantly improve your chances of securing a loan. A well-crafted business plan demonstrates to lenders that you have a clear strategy for growth, financial management, and how you plan to repay the loan. For certain loan types, like SBA loans, a business plan is often required.