So you have a bad credit score. Don’t panic – it’s not the end of the world. There are things you can do to build your credit back up and firmly position your business for viable lending opportunities. The trick is in realizing a few basic truths.

For one, you can’t escape a bad credit score. Inactive borrowing activity does nothing to improve your status, so you need to be active in ways that can incrementally improve your rating. And trust us: Good credit is worth fighting for.

With that in mind, consider these basic tips and resources for poor credit financing:

Don’t forget about microlending and crowdfunding

First and foremost, if you have any interest in recovering your credit, you need to limit your options to lenders that report your payments to credit bureaus. That being said, banks are not the only financiers that do this.

The web has enabled a slew of new financing options for startups and small ventures. From microloans to crowdfunding, social media and online networking broaden the scope of your credit opportunities. Sites such as KickStarter and Prosper allow you to pitch business ideas and projects to a network of donors and investors, while microlenders offer small business loans and cash advance programs specifically for individuals with poor credit.

“These loans are typically in the $5,000 to $25,000 range. Some of these sites are excellent sources of capital for those with poor credit,” writes Asheesh Advani for Entrepreneur magazine. “Be sure to shop around and compare rates since each site offers a twist on how they price loans and spread risk to their lenders/investors.”

Borrower beware, however. Because of your poor credit score, these kinds of loans will most likely entail high interest rates. If you’re used to rates akin to those on credit cards then they may seem affordable. But remember that installment loan agreements may restrict you from making partial payments, which are an option on credit cards.

“There may be subsidized microlenders in your state that offer more flexible terms; since they’re small, they may not have a website or web-based loan application form, however, and may be hard to find,” Advani adds.

Banks and credit cards are not the be-all-and-end-all

According to Entrepreneur magazine, credit card and bank financing account for a mere 25 percent of early-stage funding needs. While credit cards and bank business loans are important and sometimes vital, other options exist. For example, small business owners with poor credit may want to consider a home equity line of credit, which essentially refers to the act of borrowing against a home or property value.

But this is a particularly risky option, in that it can backfire … hard

If you’re unable to effectively repay your debts you may end up compromising your home value, mortgage or perhaps even lose it as collateral.

Credit card companies also offer a variety of cards designed specifically for borrowers with weak credit, but these items will surely include inordinately higher interest rates. Small business cash advances from private lenders may also be an option for poor credit financing, but these sources also run with a host of concerns that borrowers must consider.

“Also, you can now use private loans from relatives, friends and business associates to rebuild your credit score if you use a loan management company to service the loan and report payments to credit bureaus,” Advani points out.