FORTUNE Small Business:

How can I overcome poor credit?

FSB expert Patrick Thean explains how to get financing in this tough situation.

By Patrick Thean
President, Gazelles Systems, Ashburn, Va.

(FSB Online) -- Dear FSB: I have experience in business and hope to start a new venture in the future. However, because of some mistakes in the past, my credit is in poor condition. How can I get financing in this situation?

- Robert Khachatryan, Glendale, Calif.

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Dear Robert: I would recommend seeking startup financing from friends or family or concentrating on finding a customer who will help you generate enough cash flow initially to boostrap the business.

For entrepreneurs who are already in business, banks may be willing to provide financing based on the value of any receivables. The key is to prove that you have reputable clients with a good track record of paying their bills on time.  Top of page

Did you overcome a bad credit score? Tell us how you bounced back.
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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.