This article provides a good overview of the various forms of alternative financing that may be available to companies. Alternative financing may be a logical source of growth capital for both mature companies and startups to consider if traditional bank lending is not available.
"Alternative bank financing has significantly increased since 2008. In contrast to bank lenders, alternative lenders typically place greater importance on a business' growth potential, future revenues, and asset values rather than its historic profitability, balance sheet strength, or creditworthiness."
The various forms of alternative financing discussed in the article include:
Factoring
Asset-Based Lending
Sale & Lease-Back Financing
Purchase Order Trade Financing
Cash Flow Financing
Merchant Cash Advances
Nonbank Loans
Community Development Financial Institutions
Peer-to-Peer Lending
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