October 25, 2021


The best in business

5 Alternative Loans for Small Businesses

2 min read

Small business owners must confront a variety of issues when trying to start their businesses. One major issue is finding and attaining loans and cash advances. If you have a high risk business it can be especially difficult to acquire funds to jump start or infuse your business. Fortunately, there are alternative funding sources that make getting funds for entrepreneurs who work in high risk industries.

Alternative Lending

Alternative lenders can offer both long and short term loans, with fast application approvals and less requirements. However, businesses should be aware that alternative loans often charge high interest rates. Four common types of alternative lending options include: merchant cash advances, a line of credit, term loan, and invoice factoring.


In crowdsourcing, business owners can go straight to the public to raise funds. Websites like Kickstarter, Fundable, and GoFundMe are popular choices that can generate large cash flow for companies if the message is right.

Small Business Loans

The Small Business Administration (SBA) is starting to guarantee more loans, but there are still certain qualifications that businesses must meet before applying. In 2010, the loan amount for new or small operations was lifted to $5 million for the 7(a) loan program. Even medium sized companies can apply for the 7(a) loan program.

Angel Investors

Angel investors are experienced entrepreneurs who offer financial assistance to business owners in return for a share in the business’ returns. Owners who don’t mind giving shares to investors may find this to be a preferable arrangement.

Your Savings

All entrepreneurs should be willing to invest their own savings into their business, but be careful what you spend your money on. If you’ve managed to create a nest egg for emergency cash, now’s the time to use it. It is much simpler to use your own money and not be limited to what you can do with it.

First American Merchant (FAM) is the online lender that gives small business the funds necessary to launch business or keep them alive. The company specializes in business cash advances for high risk companies and those with bad credit. First American Merchant is the lender that will work for you and with you.


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