A bad credit start up business loan may seem an impossible place to start your own business. But that is not always true. Banks are out. No bank is going to touch your business loan if you have personal credit scores less than 640. But there is a lot more to business lending than just banks.

First, you have to separate your personal credit from your business credit. Until you have accomplished that there will be almost no business financing available to you with bad personal credit. Smaller community lenders, equipment leasing companies, specialty lenders tend to focus on a combination of business and personal credit scores.

Therefore your business credit scores will become the most important factors. Your business credit score is very similar to your personal score with the exception that it is in no way connected to your Social Security number. This single very important difference can help you get your business that all important financing you need.

When you have bad personal credit the only left to do is to build your business’s credit score. After you have obtained a tax ID number and a legal entity for your business, you are ready to start building your business’s credit. Then you can become qualified for vendor and supplier small credit lines.

These small credit lines can then be used as favorable credit history and leveraged into larger loans. You must make certain that you build a good business credit history with all three business credit bureaus (Experian, Equifax and Dun &Bradstreet).

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