If you are not able to get a standard loan from a bank for your business, how do you finance your business?
There are quite a few ways to get the capital you need, each with its own set of drawbacks. While I would advise against it, you can tap into your 401(k) or use a credit card. Better ways of doing it is to look into crowdfunding (see article here: http://www.blackenterprise.com/2012/04/01/accessing-fresh-capital-sources/). If your financials are solid, you may be able to attract an angel investor or secure a microloan or SBA-backed small biz loan. If you have accounts receivable, consider factoring. And while some see this as a last resort, depending on your situation, you may want to start by raising money from friends and family.