Alternative Financing Options: Securing Small Business Loans for Working and Growth Capital

While U.S. data reportedly shows the economy on a modest path to economic recovery, many businesses are still struggling to stay afloat or finding it difficult to capitalize on upcoming growth opportunities. 

Here are some tips to help you secure small businesses financing:   

What can businesses do if bank borrowing is still not an option?
As small businesses desperately struggle to obtain working capital for their businesses, they need to look outside the bankable box. There is money available, as long as you are willing to look outside the normal lending parameters. With alternative financing options like asset-based lending, businesses can secure working capital that is slightly more expensive than (or in some instances at same price as) a commercial bank - but with more availability, meaning they can borrow more money from alternative lenders than the bank will loan out. Read more. 

How can business owners measure the risk of their bank calling their small-business loan? Business owners need to be aware that many companies are in danger of losing their current bank loans. There are a few fundamental and relatively simple questions you can ask yourself to determine your risk of losing your small business loans. Essentially, there are two categories of assessment when measuring the risk of losing your small business financing: the type of loans your company has and your company’s financial performance. Read more.

What can businesses do if they don’t fit the bank’s lending risk profile? Alternative financing options can help many businesses get the backing they need when the banks say “No.” These loans are also helpful and necessary to get a business back on its feet by providing capital for your business to help make it through the downturn into the recovery so you can once again qualify for commercial bank loans at lower rates. For small or mid-size businesses that need to raise capital, it’s important to understand that the current system can work for them, but few people know exactly how it works and how to get results. Some do know, but the vast majority do not - and this includes users as well as advisors and bankers. Read more. 

How can businesses make smart decisions about recapitalization and financial restructuring to continue securing working capital? It is important to find the right advisor to help you restructure your finances and secure alternative funding so you can raise the working capital you need. You need someone who knows what he or she is doing in the alternative lending space including being familiar with the many lenders and having the experience necessary to negotiate and shop loans to appropriately priced sources of capital. There are a few true investment bankers in the small-business arena that can serve as both a lender and lead arranger or advisor on restructuring small-business debt. When it is cost effective, these firms can bring in another lender for your loan, then provide additional capital from its own fund to “fill the gap” in required capital to take the bank out in the most cost-effective way. Read more. 

If you would like to know more about how your business can secure the funding it needs, visit US Capital Partners, Inc. at or call (415) 882-7160.