I think we can safely assume you are looking for start up funds. People with a bad credit score will certainly have a much more difficult time getting loans. You will need to forget about traditional commercial loans. The SBA won`t touch you if you have bad credit. You won`t even qualify for a micro loan. However, all is not lost.
There are groups that offer loans of all sizes to individuals that are not able to secure a loan through traditional means. While they do give loans to folks with bad credit, you will need to jump through a few hoops. Like any other lenders, they prefer to help those that have proven their credit worthiness.
The best thing you can do to fund your business is to come to the realization that you need to clean up your act. You need to fix that credit score, not only to eventually be able to secure a loan (even beyond the start up phase, you will want to have a line of credit available), but to be able to handle every other phase of business ownership. Keep in mind you will have a difficult time qualifying for credit card merchant status to be able to accept credit cards from your customers if your credit score isn`t good.
So, if you are serious about starting your business, start earning more and saving towards your start up fund. If you have a full time job, get a part time job on top of your f/t job. Use that money to pay down your credit cards and to put into savings. In the meantime start doing your research and writing your business plan.
You certainly don`t need to give up your dream, but you may need to scale it back and realize that it might take a bit longer than you had originally planned. Can you start smaller and build up to your dream business? Rethink your idea to bring it in line with what you can realistically afford. You can do this if you really want to!
Check out my start up kit for more detail on those funding groups and more funding ideas.
Freelance Business Plan Writer