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As the economy continues to face credit challenges, small businesses, especially new, start-up companies are finding it even more difficult to find the capital they need to take their ideas and concepts and turn them into viable businesses.

Private equity firms and angel groups are no longer actively seeking new investments. They are more concerned with preserving and protecting their current portfolios. Further, private investors, like your neighbor or local doctors, accounts, lawyers, are not investing in local companies as their investments and retirement portfolios (usually the main source of their investment capital) have taken such large hits that any new investments are just out of the question.

Bootstrapping, by far the greatest source of capital for new businesses, is drying up fast. Credit card issuers and backers are pulling programs, tightening approvals and reducing limits. Friends and families are struggling just to survive themselves and do not have the disposable income to investment in your company.

Taking loans from retirement accounts are nearly impossible today as the market values of these assets have drop so dramatically over the last two quarters. There just isn’t the value there to take a loan against.

SBA backed loans remain just a difficult and costly to obtain as always. These loans still need to be underwritten by traditional lenders who are not making any loans at all as well as be underwritten by the SBA who has followed the banks’ course in tightening standards.

So, what are new, small businesses to do?

A few suggestions are as follows:

First, start smaller and work your way up. Small scale operations mean smaller capital needs. Thus, the small amount of capital a new entrepreneur does have (savings, home equity, retirement plans) can be used to jump start a business if it is designed on a smaller scale.

Micro-Loans: Micro-loans are loans for small organizations or start-up companies that do not qualify for regular loan facilities. These loans usually range from $500 to $25,000 and take up to five weeks for approval and funding.

Personal Loans: There are still a few companies that make personal loans from $10,000 to $100,000 provided the borrower has excellent (and I mean excellent) credit and a demonstrated ability to make the loan payments.

Asset Based Facilities: If your business has some proven track record, even if it is just for a few months, and has generated some financial assets like accounts receivables or credit card receipts, you may qualify for capital against those assets.

Account Receivable Factoring can help speed up your cash flow while you wait for your customers to pay you. You can then access working capital that can be used to generate new business, cover current liabilities obligations, or make payroll. There are companies that will factor receivables as low as $200.

Included with Accounts Receivable Factoring is Purchase Order Financing. If your business has an order to be filled but does not have the money to complete the order (e.g. buy supplies or equipment or hire needed labor) Purchase Order financiers will provide the funds needed based on that order.

Business Cash Advances, while not really a loan, can provide working capital against FUTURE credit card sales. The funds can be use for any purpose and could provide the capital your business needs to get it through these troubled times.

Equipment: Do you own some equipment outright? If so, you can sale that equipment (including tools and machinery) to a leasing company. Then, lease the equipment back from the lessor. You get the cash you need now and still benefit from possible tax deductions of the lease payments and other costs.

Where there is a will, there is always a way. These may not be the cheapest financial products in the market but for most business owners and start-ups, these may be the only option.

When seeking capital in this market, try to keep in mind that it is only temporary. The markets will turn around and lending standard will loosen. So, what you seek now should only suffice enough to get your new, start-up business through this down period.

Joseph Lizio holds a MBA in Finance and is founder and owner of http://www.businessmoneytoday.com. Also, visit his blog at http://businessmoneytoday.blogspot.com/

BusinessMoneyToday.com is a single portal in which business owners can easily find and obtain non-traditional financing for their business. YOU search for the products YOU need and select the lender or financial provider YOU want to work with. Remember, BusinessMoneyToday.com only works with money providers who WANT TO WORK WITH YOU!

photo credit: NandorFejer

If you have ever thought about opening your own business but never found the needed funding for doing so, you may have put your hopes on the back burner. Owning a business can be a very powerful step in life – becoming your own boss can literally change your life. Even though some lenders are very hesitant to loan money for new ventures, there are many lending institutions that do business online that are willing to loan you the money to start your new business.

Online Competition Yields Big Savings

Because of the competitive online world of finance, you stand a better chance of getting approved for your new business loan by utilizing the services of an online lender. In addition, online competition drives the approval rates up while the interest rates are driven down! This means you can not only get approved, but pay less over the life of your new business loans due to online competition between lenders in the finance sectors of the Internet.

Figuring The Loan Amount

When deciding how much to ask for in your new business loan, consider all of the start-up costs that you might encounter. You should include money for the initial lease on the building you will use, equipment, furnishing, remodeling, upgrades, inspections, advertising, publicity, salaries for employees.

If you will have any incidental expenses, you should consider those as well, such as money to pay yourself during the beginning months of the operation – this will go a long way towards assuring the success of your business. List the purchases you will need to make as well as how much you have budgeted for each amount.

Typical business loans can start out at $10,000, going all the way up to $100,000; even more is available if you can present a worthwhile business plan that makes your business idea seem more like a great investment to the lending institution – meaning that the lender is more certain that they will be repaid timely without effort on their part if your business appears to be one that will make money.

Hassle Free Online Applications

To apply online, you will visit the lender’s website. There you will find information pertaining to the type of loans that are available to you, including links to begin the loan application. Most of the documentation that you will need to provide to the lender in regards to your loan application can be either emailed by attaching a copy of the scanned document as well as transmitted faxed documentation. Either way is acceptable.

You, of course, will be asked for general information concerning your past as well as current employment, statements of financial worth, business plan for the business you plan to start, as well as information about any security that you wish to pledge to secure your new business loan.

Security can take the form of your home, boat, real estate, as well as other holdings. You may also want to include any cosigner information that you might wish the lender to consider when processing your application. Applying with a cosigner who has great credit as well as a good financial statement will increase your chances for approval while getting you the best interest rate possible.

Kate Ross has a Master in Finance and has been a university teacher as well as a financial consultant for years. She specializes in Unsecured Loans and also in helping people to get approved for Guaranteed Loans for Bad Credit, home loans, guaranteed loans, bad credit auto loans, guaranteed credit cards among many other financial products. For further information, please visit http://www.speedybadcreditloans.com