Jan 22 2026
Securing funding for your small business is harder than ever before.
Bank loans have become stricter over the years. And if you don't have spotless credit or decades of financial history… Well then you're basically out of luck.
Luckily, there's some good news:
If you know where to look, there are dozens of alternative funding options available to small business owners. Options that can provide your business with the capital it needs to thrive.
Let's be honest…
Big banks don't want your business anymore. According to Fed Small Business, only 44% of loan applicants received full approval from larger banks in 2024.
This left over half of small business owners empty handed.
Why?
Too many requirements.
Large banks have strict guidelines that only allow the highest qualified borrowers to access capital. Perfect credit. Years of financial history. Guaranteed approval doesn't come if you don't meet those standards.
And just because you do qualify…
The process can take weeks or months. Which isn't ideal if your business needs money right now.
That's why alternative funding options have become so popular. They allow borrowers to receive capital quickly without outrageous qualifications.
Every business situation is unique. So, there's no "one-size-fits-all" when it comes to funding your company.
Believe it or not, one of the easiest ways to get business funding is through loans using vehicle collateral. If you own your vehicle outright, you may be eligible to receive funding by leveraging your car's equity.
Essentially, you use your vehicle as collateral on the loan. The lender holds onto your title until you pay back the loan in full. Simple as that.
Vehicle collateral loans are great for borrowers who:
You can even keep driving your vehicle while you have the loan. It doesn't take possession like some lenders do with other assets.
If you own equipment that your business uses… You may be able to use that to secure funding as well.
This works much like vehicle collateral loans. But with equipment financing, you use your machinery or business vehicles as collateral.
Common industries that use equipment financing include construction, manufacturers, and transportation companies.
Because there's actual collateral on the loan, approval rates are typically much higher.
Waiting on customers to pay their invoices can hurt your cash flow.
But what if you could sell those invoices to a third-party?
With invoice factoring, you can sell your unpaid invoices at a discount to get cash immediately. Instead of waiting 30, 60, or 90 days for your customer to pay.
Here's who can benefit from invoice factoring:
With invoice factoring, you're not really taking out a loan. You're selling one of your assets. Meaning you won't have any debt on your balance sheet.
A merchant cash advance is taken out against your business's credit card sales.
You receive a lump sum of money upfront. Then, the lender takes a percentage of your daily credit card transactions until the advance has been paid off.
This is a great option for business owners who need quick cash and regularly process credit card payments.
Keep in mind that these advances can come with hefty fees. So, don't forget to do your research beforehand.
Peer-to-peer loans allow you to borrow money from individual investors.
These platforms are similar to traditional bank loan services. But they typically have more flexible qualifications.
Everything is done online, from the application to funding and repayment. Many platforms can even approve your loan the same day you apply.
Microloans can be a great solution if you're looking to fund your business in the smaller $'000.
There are many organizations like the SBA and nonprofits that offer loans ranging from $500 to $50,000.
Microloans were created to help startups and smaller businesses who need access to small amounts of capital.
Because the requirements are less strict, these loans often come with business support and even mentoring in some cases.
Alright, now that you know what your options are. Let's talk about how to choose.
Ask yourself these questions when searching for funding:
If you need cash yesterday and you own your vehicle. A vehicle collateral loan will be your quickest option.
Merchant cash advances are great for businesses who process credit card payments and need a little extra help.
And if you're bleeding cash flow due to unpaid invoices. Invoice factoring can help you out.
Just make sure you're choosing a loan that specifically fits your business's needs.
Don't settle for the first option you come across. Research each opportunity. Look at their terms and fees.
You could save yourself thousands of dollars in the long run by just doing a little due diligence.
Big banks care about credit scores. Alternative lenders care about your business.
Alternative lenders take a look at your business revenue, assets, and industry. They also look at your cash flow patterns to determine if you qualify.
Traditional banks turned down 21% of businesses who applied for loans in 2024. Could your business have qualified for an alternative loan?
Here's the thing:
Just because you got denied at your local bank. Doesn't mean you don't qualify for business funding.
When it comes to small business funding… There's a lot to think about.
Vehicle collateral loans are great because they're quick and don't come with stringent requirements. Equipment financing and invoice factoring can help you use assets you already own.
Whatever you do… Don't let one rejection stop you from growing your business.
Explore your options and find the right path for your business.
Here's a quick recap of what we talked about:
The lending world is changing. Don't be left behind.
Tell me what you need and I'll get back to you right away.