A conventional bank loan is not the only source of small business financing. "It's a very good opportunity right now for small businesses to seek financing, and there's a lot of unconventional forms of financing now," says Jonas Cohen, managing director of Fuller Landau Consulting Ltd. ("Taking it to the bank ... or not", Eric Lam, Financial Post, Aug. 11, 2009).
What are these unconventional forms of small business financing? Mr. Cohen discusses three:
* an asset-based loan where your inventory is used as collateral;
* contract financing, where the lender finances a purchase order instead of the manufacturing process prior to purchase and gets an agreed-upon cut of the profit when the transaction is complete;
* or using a sale-leaseback transaction, where you sell your business property to yourself, a holding company or an investor and then agree to a long-term lease to retain the use of the site.
The above is quoted from Susan Ward's post at about.com about other alternative business financing that we can consider too. Check out more about this post here - Small Business Financing Options You May Not Be Aware Of.