Situation

Business funding after a past bankruptcy or consumer proposal: how it is read and what helps.

A discharged bankruptcy or completed proposal is history; the account shows the present.

✓ Checking what you qualify for does not affect your credit score.

Can you get business funding after a bankruptcy?

Short answer: Often, yes, after discharge. A discharged bankruptcy or completed proposal is history, and the account shows the present. Personal insolvency affects credit for years and funders vary in how they treat it, but time since discharge, the cause and steady business deposits since all matter. Expect smaller amounts at first.

Key facts

Discharge or completion is the starting point
Time since discharge matters
Current deposits carry the file
Expect smaller first offers

How this is read

A discharged bankruptcy or completed proposal is history; the account shows the present.

Personal insolvency affects credit for years. Funders vary in how they treat it, and the time since discharge, the cause and current account performance all matter.

What helps

Discharge or completion several years ago
Steady business deposits since
Clean handling of current obligations
A brief, factual explanation

What hurts

An active proposal or bankruptcy
New credit problems since discharge
Weak current cash flow

A sensible plan

Disclose it, give the dates and explain what has changed. Show that the business account is healthy and that current obligations are paid on time.

Illustrative arithmetic

An auto repair shop depositing about $55,000 a month asks for $15,000 for a diagnostic scanner. At a 1.27 factor the payback is $19,050, a cost of $4,050. Over roughly 5 months that is about $181 per business day, or close to 7% of monthly deposits.

Total payback: $19,050.
Cost: $4,050.
Payment: about $181 per business day, close to 7% of monthly deposits.

Every figure on this page is illustrative arithmetic in Canadian dollars. It is not an offer, a quote or a promise of approval.

Typical starting points

Monthly revenueTypically from around $20,000 a month in deposits for Canadian files. The exact line varies by funder and by file.

Time in businessTypically about 12 months. Newer businesses can be reviewed, but the options narrow.

Account healthLimited low-balance or negative days. Funders read the last few months of bank statements for this.

CreditScores from 500 are considered. A score of 600 or higher opens more options and better offers.

DocumentsA signed application and recent business bank statements, typically the last four months.

Existing advancesFiles with an existing advance can be reviewed, including second position.

One more thing that helps

Recovery is the story to tell: dates, cause and what the business has done since. A reviewer cannot change the past, but steady deposits and clean payments over the last year speak louder than a credit report entry from years ago.

Practical tip

Keep copies of discharge or completion documents ready. Reviewers sometimes need to confirm the date and status, and having the paperwork on hand avoids delays late in the process.

What to send with your application

Discharge or completion documents
A two-line explanation of the cause
Recent statements showing steady deposits

Bottom line

Time since discharge, steady deposits since and a short honest explanation do most of the work. The account shows the present; let it speak.

Sources and review

Reviewed by the Merchant Fund Express team on October 12, 2026. Official pages checked as of that date.

Common questions

Can I be considered after a bankruptcy?

It varies by funder and file. Time since discharge and current deposits matter most.

Does an active proposal matter?

Yes. Many funders will wait until it is completed.

Should I mention it?

Yes. It will appear on credit, and explaining it helps.