According to the Small Business Administration (SBA), "Inadequate or ill-timed financing is a major reason for small business-failure." It only makes sense then that every entrepreneur should have their sensing radar open to alternative financing methods.

The first is obtaining cash advances against future customer credit card transactions. One such firm providing this service exclusively to businesses is Advance Me, Inc. (www.advanceme.com)

A simple "swipe" of a customer's credit card keeps your working capital advance up to date. Since the rate at which they collect the money is determined by a realistic evaluation of your company's prior monthly credit card receipts, the collection process is both predictable and easy. Their unique credit scoring system provides a "customer-friendly" approach to qualification. When most lending institutions seek to "screen-out" potential applicants, we work hard to "screen-in" qualified business applicants. The response time is fast and approval can be done in just a few days.

This may be something worth checking out for your business if bank and traditional financing is unavailable to your business.

The second alternative financing option is using one of the new people to people funding services like Prosper. (www.prosper.com)
Prosper, America's first people-to-people lending marketplace, was created to make consumer lending more financially and socially rewarding for everyone.

The way Prosper works is intuitive to people who have used eBay. Instead of listing and bidding on items, people list and bid on loans using Prosper's online auction platform.

People who want to lend set the minimum interest rate they are willing to earn and bid in increments of $50 to $25,000 on loan listings they select.

Borrowers create loan listings for up to $25,000 and set the maximum rate they are willing to pay a lender. Then the auction begins as people who lend bid down the interest rate. Once the auction ends, Prosper takes the bids with the lowest rates and combines them into one simple loan.

Prosper handles all on-going loan administration tasks including loan repayment and collections on behalf of the matched borrower and lenders.