With the tightening of the credit markets, do you find it is near impossible to get conventional financing for your business? Where can you go in this day and age if you need an infusion of capital?

Here are 5 popular ways business owners raise cash.

1. Angel investors and venture capital. If your business plan makes sense to these private money lenders, they will invest in an industry they feel confident in know and understand.

2. Private loans. Key management and other private investors, including individual retirement plans who have capital that is not earning much may be interested in short term lending.

3. Equipment Leasing. If you need the capital to buy equipment, consider leasing over purchasing.

4. Factoring. Selling your receivables to a third party generally at a discount, is known as factoring. There are pros and cons to using factors so make sure you understand the rules before you sell your receivables for cash.

5. Asset-based lending. Financing secured with collateral such as equipment, real estate and inventory or other assets.

Be creative, think outside of the box and remember, do your homework!

This entry was posted on Monday, August 17th, 2009 at 12:41 am and is filed under Professionals. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.