Having a bad credit score would normally make you ineligible to avail credit from any lender. The reduction in your score could be due to reasons such as delayed payments, written off or settled accounts etc. You can take action to improve your credit score and apply for a fresh business loan, but it will take some time to get the good score.
The options are not however ruled out with a bad credit. There are several online lenders who provide you small business loans based on other eligibility criteria. All you need to do is a thorough research and zero in on the right lender. The downside of such private lenders is that you may have to pay a higher interest rate on the loan.
While banks may not be ready to provide you an unsecured business loan, pledging a collateral can secure you a business loan. As the lender has a security, the chances of approval on your business loan is higher.