Are there any alternatives to loans to finance my small business?

Another area to check out is a SBA (Small Business Association) loans. The government has made these very favorable for banks and are covering the risk of approximately 90%. Both small community banks and large banks with local branches offer SBA loans - the larger banks may be more competitive but if you already have a relationship with a smaller bank they could be the better option. You'll need to make a projection of future cash flow but this can be a great source for financing. In some states there is also programs to help cover fees. Additionally if you are a veteran you can get a Patriot Express loan as well.

Friends and family investments are the #1 source of funds for small businesses, followed by factoring/accounts receivable. Depending on your niche market, you may be able to qualify for state funding through one of the technology incubators, or angel funding through an organized angel investment group. (Those last two don't usually work if you're a service business; product-based companies attract these kinds of investors.)The Kauffmann Foundation and their related sites are the best source of information on fund-raising for small business, I think. http://www.kauffman.org/ I've funded many businesses over the years, and always found them helpful. Good luch!

We're big advocates for bootstrapping a startup, but there are some great "crowdfunding" projects you should check out. If your business suits the platform and appeals to the user base, you can have some great results. http://www.kickstarter.com is a popular one, and this post will share several. http://bit.ly/aZD3LW We have a client who just reached their funding level and were able to get the equipment for a community kitchen.

Every response has some very good advice, and I concur with each. You might download and read "29 Ways to Fund a Business" http://business-financing-book.com/node/4 The link contains some very good info also.

When it comes to structured financing, each case is completely unique.There are certainly many alternatives, but how you fund the business has to do with what stage you're in, what your (amount of dollars) request is, what the business model is, and how much has the entrepreneur invested into the enterprise thus far, among other things. You also need to consider what "type" of finaning is required...there are many different applications of capital such as CAP-EX, time-difference financing, asset based lending term loans and several others.

Feel free to contact me directly for more information and to explore what might be a fit.

At the top Eric mentioned accounts receivable factoring. This is for companies that have reached revenue stage, meaning they have customers and invoices for work completed and accepted. There are 3 main reasons for a start up to use factoring for growth;

1. The decision to fund is based on the credit of your customer (not your own)
2. You can get set up in a few days, & funded within 24 hrs of submitting an invoice.
3. There's no credit limit, you submit invoices and the factor keeps funding.

So these aspects make factoring a good solution for some situations - not all, but certainly securing access to outside capital to help get through a contract is important for any growing company.