Acquiring a loan in the current hard economic times is quite challenging. In the last two years, many lenders have tightened their lending norms in the residential market, and now less money is available to the business owners or all those who have plans to start their new business. However, the availability of money has not dried up and one has to be bit creative and diligent to get it. Agreed that conventional banks and financial institutions are now scrutinizing each and every application more than ever before, but there are some innovative ways to get started with your new business:

We are discussing few ways to raise finance for your new business:

1. Commercial loan- There is lots of paperwork involved in any commercial loan, where you will have to arrange for the financial statements, incorporating documents, credit report, tax documents and so on. Commercial banks will first check the amount of funds that are available with you, credit history, your cashflow, collateral available with you and your capacity to repay the loan. They will also check the way you want to use these funds

2. Equity for expertise- If you are working on a great business idea, then maybe you will find others who may be willing to offer their services in lieu of some equity in your business. It can range from marketing services, construction service, or legal service, there are endless possibilities. For instance: you can get in touch with the licensed attorneys in your city as they can help in incorporating your business and may postpone their legal costs, and may charge only some upfront fee for covering the filing fees. They may agree with just 2-3% for postponing their legal fees. You can pay their fees once you get funding for your project.

3. SBA Loan- If one fails to secure commercial loan, then he can also apply for Small Business Administration (SBA) Loan, because their main requirement is that you have tried to secure loan from the traditional lenders, but were not successful in getting the same at suitable terms. Small Business Administration guarantees up to 75% of the credit provided by a private lender.

4. Venture capital-There have been many success stories where startups have received millions of dollars as venture capital. Angel investors are willing to invest in an idea that is too risky for any traditional lender. You can get a cash loan in the range of 1-4 million for a period of about 5-8 years. Sometimes companies starting with angel investment become big within years and then venture capitalists become involved in them.

5. Business plan competitions- These competitions are becoming great source of funding to start a new business where you have no connection with venture capitalists. Many leading companies and institutions have business plan competitions and if you are selected in this competition, your business is pitched to select group of judges who can award funding to the best idea.

6. Credit cards- These cards can be a great source of quick cash and many credit cards offer cash advance at low rate of interest for a period of around six months. However, they are best only for any short terms needs.

7. Home equity lines of credit- If there is a considerable equity in your home, you can get an equity line of credit, as they are available at low interest rates.