Even the most spendthrift small business owners need money to finance their businesses, and banks aren't exactly doing their part to make sure smaller firms are able to flourish. According to recent research from the National Small Business Association, 43 percent of small business owners said they have unsuccessfully tried to obtain funding during the last four years.

"Not only have small-business owners been unable to find new credit over the last four years, nearly a third had their existing credit slashed and one in ten had their loans called in early," said Todd McCracken, president and CEO at the NSBA. "What's worse – 19 percent of those whose loans were called in early were given less than 15 days to pay the full balance of their loans."

Banks are simply unwilling to part with the cash small business owners need right now. The survey found more than 25 percent of small business owners have changed banks over the past four years, with many saying they felt they were mistreated.

With small business financing from banks becoming harder to come by, many owners are turning to alternative options that can line them up with the cash they need to keep their business above water. Here is a list of potential sources in which small business owners can obtain capital.

Strategic Investors

Small business owners who have promising products and services that only need a capital injection before hitting it big should consider working with strategic investors. These investors offer to buy a stake in a company in exchange for working capital. One of the downsides to this type of funding opportunity is that small business owners will have to answer to strategic investors because they have forfeited a portion of their company.

Home Equity Loans

An affordable option small business owners can use to come across some working capital is through home equity loans. By putting their home on the line for their business, small business owners may be able to obtain low interest rates for funding. These loans can be paid off as small business owners begin to earn some revenue. However, a drawback to home equity loans is that if the small business fails, the business owner's home may be in jeopardy. 

"While small businesses' ability to garner financing has broad economic implications, nearly one-third use personal property – such as their home – to secure financing," said Chris Holman, chair at the NSBA. "The financing issues small-business owners face don't end when they close up shop for the day."

Credit Cards

Small business owners that have done some cash flow forecasting and believe their revenues will be higher in a few months than they are now can look into business credit cards to provide them with some immediate capital. It is important to be responsible with business credit cards because high interest rates can cost small business owners down the road. A smart practice when using credit cards is to pay off these cards each month so business leaders don't accumulate an overwhelming amount of debt – a potentially backbreaking consequence of poorly managed credit card use.

Venture Capitalists and Angel Investors

Finding venture capitalists that believe in a small business can make it more likely they will lend some funding. Many of these lenders will look at a business to see if it is worth investing in, and if they believe in it, they will hand out some money from their own wallets to help the business reach its potential. Businesses may find they can secure a larger sum of money through this option, but, in many cases, accepting resources from venture capital firms means having to follow their business game plan.

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