So he tried to get a business loan from his bank or the SBA, and was turned down. Maybe you don’t have enough assets, liquid assets, credit, personal assets, the right kind of business, business history, etc. Where do you go when you need money to expand, remodel, advertise, or purchase inventory or equipment?

The most interesting thing about change is that it may close the doors you are used to walking through, but it opens other doors of opportunity that may be even better than the old, tried ones. When the credit market contracts, that doesn’t mean the money is gone. While banks may not be the resource they once were, many other lenders are stepping in to fill the void, because they make money when they lend and don’t have the same restrictions that apply to traditional banks.

Here is a short list of options to consider when it comes to getting a business loan:

1. Keep track of the reasons why you have been rejected, and don’t be afraid to discuss them. This is very valuable and time-saving information! I always ask my borrowers where they applied before and what the specific reasons for rejection were. This way, I can quickly evaluate other strategies and ask the borrower questions that will guide us to the right solution.
2. Be willing to brainstorm with your lender or broker. If things aren’t what you expected, ask what other options there might be. Also, don’t be afraid to ask if they know of anyone else who can help.
3. Take stock of your other assets. There are lenders that will lend against many different types of assets, such as business accounts, future cash flow, marketable securities, financial instruments, real estate, insurance settlements, and factoring receivables. For some of these options, credit and business history will not be a factor in qualifying for a loan.
4. If you are publicly reporting or publicly trading, or with pink sheets there are investors who can buy large blocks of shares to help move the company forward. It’s important to do your research to make sure they aren’t interested in “pumping and dumping” but instead have a real interest in your business succeeding.
5. Venture capital or JV could be the right choice for you, especially if you are expanding or just starting out. Angel investors are sometimes available for the right start-up company that strikes your fancy, while JV partners are interested in situations that share and mitigate risk with the right financial reward.
6. The net on business social networks like LinkedIn, GoBigNetwork, then expand contacts via Skype or Plaxo to keep in touch. Join as many relevant groups on those networks as you can to connect and grow your sphere of influence.
7. Cut costs where it makes sense. I know you’d really rather focus on getting the cash on hand, but think how much it would help to cut costs simply by switching service providers or consolidating more services under one roof.

For example, most businesses don’t keep track of rising costs on their business accounts, and can easily benefit from switching their business to one that offers lower rates as well as business account loans. If you have bank accounts at multiple banks, find out from each bank what they would do to get more out of your business.

If you’re already factoring, take a look at other providers that may have lower rates and better service. If you have an import and export business, you may want to compare foreign exchange rates with some new companies and see how much you can save there. Equipment leases are another competitive area where you can save money.

In general, it’s important to be flexible, honest, and creative when looking for new avenues of business capital. Keep looking for new ways to network so others know about your business, your growth, your capital needs, your contribution to other businesses and other people, and especially about you. Learning new ways to seek trading capital can be rewarding in many more ways than just the dollars it provides.