If you have a poor credit history, obtaining a loan for your start-up business or one that is a going concern may seem to be out of the question, and in regard to banks, that is generally true. However, what follows are some other more realistic sources you can use in order to reach your goal.

● Begin by keeping your business credit and personal lines of credit separate as an essential first step. Also, note that specialty lenders, some community lenders and equipment-leasing companies often want to review the whole picture and will base their decision on a combination of both you personal and business credit scores.

● Note that your business credit score will not be linked to your Social Security number (which is closely related to your personal credit score) in any way, and this may be the determining factor that will enable you to obtain the loan you need. Once your business is established as a legal entity and you have an accompanying tax identification number for it, you can start to establish a credit history for your business and qualify for small credit lines from your suppliers and vendors.

● Try to obtain some of these small lines of credit and build your business’ credit score by using the appropriate tax identification number. Be sure to pay them off in a timely manner, and once you have established a favorable credit history with all three credit bureaus, you will be able to leverage them into larger loans and expand your business.

● You can always obtain a short-term loan whenever you need funds without delay if you know that paying them off will not be a problem. Unfortunately, while you may find that a cash-advance loan is readily available through various lenders, you may also discover that the interest rates they charge are prohibitive.

● It is also possible to use the equity you have in the property you own, your equipment or related assets to obtain a secured loan based on their value, If you default on that loan, the lender will have the right to seize those assets, and this could undermine the stability of your business and jeopardize its future.

In general, you want to look for a business loan that will increase your cash flow to pay your employees and cover other operating expenses, fund the renovation or expansion of your building, or help you to buy the equipment, tools, parts and supplies you need.