At one time you could walk into a bank, talk to your friend, the local loan officer, and get a business loan–even with poor credit. Those days may be gone, but it still is possible to get a business loan with poor credit.

You have to be prepared, when trying to get business loans with poor credit. A big bank won’t give those loans. It is also possible with each credit inquiry, your credit score may go lower.

You might have better luck getting a loan from a community lender, or a regional or local bank. Loan officers at such an institution might be more likely to consider not only your personal credit score, but also your business credit score. Your business credit history is associated not with your Social Security number, but with your business’s tax ID number. You will have a better chance of getting a loan with a poor personal credit history, if you have a business tax ID number and a good credit history associated with that number. If you have not gotten such a number from the IRS, get one as soon as possible. It is possible to get such a number without incorporating your business, if you have a business that is an LLC, a partnership, or a sole proprietorship.

If you have a business taxpayer ID number, a banker might consider the outstanding debt balance on your credit accounts and your bill payment history. As a result, if your business credit history is good, you will have a better chance of getting a loan–even with a poor personal credit history.

Another option for you might be a specialty lender, who specializes in loans for high risk entrepreneurs. If a banker or someone else recommends such a lender to you, or you find one online, be prepared to pay a high interest rate–although it might be lowered once you demonstrate you have money to cover your debt.

Other options for a business loan for someone with poor credit include family and friends or home equity loans. They may not be your first choice, but might be an option for you.

One final option would be to contact your local Small Business Administration or contact the national agency online. The SBA does guarantee some loans which others offer to businesses and also has a list of business friendly banks.