As the credit market for small business lending continues to feel the aftereffects of the great recession, small businesses are still struggling to obtain loans from the traditional banking establishment. In a recent article that appeared on, former SBA Chief Karen Mill’s Harvard Business School paper was cited revealing just how tough the recession was for smaller businesses, as well as the resulting “credit crunch” on the part of banks whose after-effects are still being felt today. The paper revealed the thought processes behind banks deciding to move away from smaller loans, since within traditional banking the costs of underwriting a hundred thousand dollar loan are comparable to the costs of underwriting a million dollar loan, but with a lower profit margin for the bank. Alternative capital allows these markets to be served quickly and effectively. One of the reasons why alternative capital represents the potential for introducing major change to the way banking works is that within the industry, a different approach to

Bad credit business loan alternatives give business owners who can’t meet the criteria for traditional business loan programs options for gaining liquid capital. For those whose bad credit would otherwise prevent them from pursing important opportunities for growth, they can be a valuable tool. One common aspect of this type of financing is that an advance is generally able to be renewed for better terms provided that the business is still making sales. For those who are able to use their initial advance to grow, the availability of another round of financing can potentially open even more doors when used in a strategic way. Compound on successful marketing. One common reason that business owners apply for bad credit business loan alternatives is because they are looking to invest in marketing in order to grow their customer base. Should they discover a technique that is producing a large amount of return, when they become eligible for a renewal they may seek to allocate that available capital into

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