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Getting a business loan with poor personal credit is no easy task. In the modern economy, the only kinds of conventional loans that are available to people in this situation have very high interest rates and require a lot of collateral. However, there are other ways of securing a loan besides going to the big banks.
First, you can start by getting a no credit check business account. This is a somewhat lengthy process, but it is extremely useful. You must first register your business with an EIN number, then create a new identity for it by creating a bank account and telephone line in its name. This will allow you to report it to the business credit reporting bureaus. After this you can start building business credit by using business credit cards and using the business for trade lines. This takes a while, but the result is very helpful: you will now be able to apply for loans with business credit instead of personal credit.
You may also want to consider alternative sources for loans. Banks are the obvious first choice, but you may also have success with credit unions, smaller banks, and P2P lending. P2P lending has become exceptionally popular in the past few years due to the advent of online P2P lending markets, such as prosper.com and virginmoney.com. These sites enable independent lenders to get their names out there without high barriers to entry, and will be more flexible and competitive than large lenders.
Another option is to simply get a cash advance. Cash advances are a kind of loan that merchants provide that are based on future credit card sales, and require no credit check. Business accounts attempting to qualify for a cash advance must be registered and must meet a certain requirement of credit card sales. Cash advances also offer very flexible repayment and require no collateral at all.