Business to business companies can usually access financing more easily than companies that deal with consumers directly. In this type of scenario, you can use your clients' invoices to obtain financing from lenders. The process of obtaining cash advances using your clients’ invoices is called factoring. The factor takes the role of collecting the full amount owed to you by your client, then deducts the amount advanced to you and any other fee then pays you the balance. 
Trade Secrets. Trade secrets can be a great asset for startups. They are cost effective and last for as long as the trade secret maintains its confidential status and derives value through its secrecy. A trade secret right allows the owner of the right to take action against anyone who breaches an agreement or confidential relationship, or who steals or uses other improper means to obtain secret information. Trade secrets can range from computer programs to customer lists to the formula for Coca-Cola.
Fundation (see our review) is another high-quality alternative lender that provides capital to franchise businesses. Fundation has some of the lowest rates and fees you can find outside of a bank or credit union, offering up to $500,000 deposited in your account within a couple weeks after applying. However, the borrower requirements are more stringent than those for other some online lenders, as you’ll need good credit, one year’s time in business, and at least three full-time employees.
Small business term loans. Term loans are typically for a set dollar amount (e.g., $250,000) and are used for business operations, capital expenditures, or expansion. Interest is paid monthly and the principal is usually repayable within 6 months to 3 years (which can be amortized over the term of the loan or have a balloon payment at the end). Term loans can be secured or unsecured, and the interest can be variable or fixed. They are good for small businesses that need capital for growth or for large, onetime expenditures.
Shelton recommends meeting with a loan officer a few weeks to a month ahead of time to personally meet the loan officer and find out if the bank is currently interested in lending the type of loan you are looking for: “You want the loan officer to be on your side,” Shelton explains, because the loan officer usually doesn’t have the approval level to say yes to a loan.
A microloan is similar to a traditional bank loan, but they often come from alternative lenders like credit unions. A microloan tends to be easier to get for those with subpar credit because the loan amounts, as the name indicates, are small, typically fifty thousand dollars or less. Because of this, the credit requirements for these loans are also lower. If this amount of funding suits your needs, this is a good option. The SBA has a microloan program, and there are several alternative lending options such as Prosper and Zopa.
You need to be prepared for a rejection of your loan, and you need to be prepared to re-work your business plan, save more money or do whatever else the loan officer suggests to secure a loan. It can be hard not to take a rejection personally, but remember that the lender is not rejecting you or your business idea–they are simply rejecting the opportunity to help you finance your business. You need to rework your business plan and/or secure more capital before you try again.
But even if you’re not an internet startup or these techniques don’t feel right to you, you can still take steps to get money coming in quickly. If you run a service-based business, you can structure contracts so that clients have to pay a certain amount up front or at agreed milestones, instead of all at the end. With long-running projects, this can make a big difference to your cash flow. You can also offer special discounts and limited-time offers for people who sign up as early customers.
Microlenders are nonprofits that typically lend short-term loans of less than $35,000. The APR on these loans is typically higher than that of bank loans. The application may require a detailed business plan and financial statements, as well as a description of what the loan will be used for, making it a lengthy process. Also, the size of the loans is, by definition, “micro.” But these loans may work well for smaller companies or startups that can’t qualify for traditional bank loans, due to a limited operating history, poor personal credit or a lack of collateral.
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