An alternative business loan is a loan that is acquired through means that differ from the usual method of getting a loan. Small business owners usually opt for this type of loan because they have limited sources of collateral or because their business is at risk; therefore it is harder for them to get a loan.One kind of alternative business loan is a start-up business loan, which is very similar to a personal loan. Because start-up businesses have a tendency to fail in a short amount of time, lending institutions do not want to put their own money at a higher risk. If you are interested, check out Business Credit Funding.Once a business owner has been denied by the conventional resources for a start-up loan, the individual usually looks to other sources such as family, friends, and organizations that are more willing to take a risk on start-up companies.One organization that can help is the Small Business Administration. They work to enhance economic growth by aiding small businesses. However, because such organizations are willing to take a greater risk with start-up businesses, their interest rates may be higher, and they may require equity from your business to maintain financial support.Another type of alternative business loan is a cash advance. Agencies that offer cash advances usually do so against an individual's merchant account for a specified amount per location. To be eligible for an advance, a business must accept and be processing credit cards at its locations. The funds from this type of alternative business loan are usually available within a few days.Alternative business funding resources generally refer to the different sources available to businesses that cannot obtain traditional funding. Traditional lenders, such as banks, deny many businesses that need start-up capital or that have an unstable financial history. However, a variety of agencies are available to assist such businesses in need of funding.Factoring is common among alternative business funding resources. When a business chooses factoring as a funding method, it sells its account receivables at a discount to another company, called a factor. To be able to factor, a business must accept and process credit card purchases. A factor might also require a business to have been processing credit cards for a specified length of time, usually two or three months. The factor then collects the payments of the credit orders for a specified amount of time. The higher a business's credit card flow, the better factoring plan the business can obtain.Alternative business funding resources also include angel capital, also known as an angel investor. An angel investor is a private group or individual who provides funding for a business in exchange for a portion of that business's profits. The majority of investors tend to organize a network or group to combine their capital. This reduces the risk of loss investors might face if they invested in a business alone. However, angel investors still face a high risk; therefore, they often require a large return. The return can range from ten to twenty percent of the amount invested. For more detailed information, visit Business Credit Funding.