Beyond Conventional Business Loans: Financing Alternatives for Entrepreneurs

Many entrepreneurs find themselves seeking business financing loans from non-traditional lending sources. New businesses lack capital and the experience required by most banks for new commercial business loans. Business capital can be available from other funding sources.

Angel Investors
Angel investors are individuals who have a high net worth and seek to invest in speculative business ventures. These networks work on a national, or local basis and publish guidelines as to the qualifications for their financing. The qualifications usually include a business plan or a detailed description of the product or service that the business provides.


Microlending is a financing process that is becoming more popular among small businesses and entrepreneurs. Microlending involves small loans that allow an entrepreneur to make down payment on rent or supplies necessary for their business. These loans are provided by community groups, lending institutions and other networks designed to help small businesses get established.

These are a few alternatives to traditional bank lending that are available for entrepreneurs. Your local chamber of commerce or business network can help you locate these sources and other ways to finance your business.