We’ve covered the reluctance of large financial institutions provided lending to small business owners despite interest rates being at record lows. The big banks claim that there just isn’t any demand for loans. This is obviously nonsense. If demand is low it’s because banks have now stepped up their lending standards to where they should have been before the crisis. No longer will NINJA loans be approved. This is at least what many potential loan seekers believe and that may have deterred them from applying until they finances can more meet the new requirements. Just because big banks won’t approve your loan doesn’t mean that nobody will. There are many alternatives but they unfortunately often come at a higher cost. The New York Times continues, “After years of a small-business credit crisis, conditions seem to have improved. But with the economy still struggling and new regulations meant to eliminate bad lending, bank loans continue to lag.

“The days of yesteryear when you could go to your corner bank are over,” said Kenneth Walsleben, who teaches in the entrepreneurship and emerging enterprises department at the Whitman School of Management at Syracuse University. “Small, emerging, growing businesses have few traditional sources to turn to. You have to get a little creative.” Some creative alternatives have been around forever; others emerged during the crisis. Almost all are substantially more expensive than traditional bank loans, which is why they have been sources of last resort. But as demand for alternative options has increased, some prices have come down. This guide, based on conversations with lenders, brokers and business owners, suggests which products make the most sense for different types of businesses…”

Popular alternatives include:

Asset-Based Lending

Lease-Back

Cash Advances

Nonbank Loans

Peer-to-Peer Loans

Click on the link below to see the explanation behind each.