8 places to get financing

Can't get a bank loan? Try these alternate funding sources to get the cash your business needs to grow.

1 of 8
Credit unions
Credit unions
Wall Street's growing crisis has led banks to clamp down on lending, depriving many entrepreneurs of the financing they need. Small businesses seeking expansion capital have to wait months for a decision - and often, a "yes" brings with it ridiculously onerous loan terms.

"Unless you have a personal credit score higher than a 690, and a perfect business credit score ... it's probably not going to work with the banks right now," says business coach Leili McKinley. "Don't waste your time unless you want to practice your pitch. Alternate funding will probably be your best chance at capitalization."

We took a look at 8 alternative sources business owners can tap for cash.

Credit unions

Pros: The ownership structure at credit unions is such that those with an account actually own a part of the institution, so credit unions see you as a member, instead of a number.

Cons: Though credit unions were established to provide credit at reasonable rates, experts say the rates vary widely, and that credit unions can be as cautious as banks. "Credit unions are relatively new in the corporate lending field," says Tom Lowles, director of Portland Community College's Small Business Development Center. "I don't see them as a big player."

NEXT: Microlenders
LAST UPDATE: Sep 30 2008 | 11:23 AM ET
Sponsored by
More Galleries
6 designers shaking up fashion These designers are changing the way we dress, accessorize and shop, from custom made-to-fit dresses to smart jewelry that's actually stylish. More
8 must-have travel apps Whether you've got wanderlust or an airline grievance, here are some apps to pack onto your phone. More
Secrets to success from Smalltown USA Utah State professor Michael Glauser cycled 4,000 miles this summer, visiting 100 entrepreneurs across the country. Here's a snapshot of how they grew their businesses. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.