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Four Sources of Alternative Funds
Can't get a bank loan? Cash-strapped entrepreneurs can tap into these sources instead.
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Phyllis Rector, The Interface Financial Group Posted: 7:08 PM On October 6, 2008
There is a difference between merchant cash advances and factoring. Merchant cash advances are advances against future credit card receipts. Factoring is the purchase of accounts receivable generated by commercial entities, not retail entities.

All factors work a bit differently one from the other. Some will take over the entire accounts receivable relationship, other will purchase individual invoices. The Interface Financial Group purchases invoices; we have a 2-3 day turnaround for the first funding and 24 hours for subsequent fundings.

Yes, the cost of this kind of financing is more expensive than bank financing. But if bank financing is not available, the cost of not financing with a factor may be not taking advantage of a good growth opportunity.
Janie Posted: 11:18 AM On September 15, 2008
There are also specialized peer-to-peer finance networks for business entrepreneurs (e.g. 40billion.com at http://www.40billion.com ) and college students (e.g. SchoolRaise at http://www.schoolraise.com ) to raise money through friends, family and other people who may be able to help provide funding.
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