Introduction: Part 1

Many entrepreneurs and current business owners have given up on the idea of ​​receiving bank financing, since the economic recession, while others have resented to seek non-traditional resources. Of course, a charitable request from family and friends is an option (not discussed here), however the gut-wrenching feeling of asking loved ones is not only uncomfortable but also makes sleeping at night restless.

Since the 2008 economic downturn and the billions left to bail out banks and insurance companies, these firms literally “grabbed the cash and ran,” well not ran, but actually held on tightly to these huge reserves without lending the money back out into the economy . Money is meant to circulate through the nation, that's why it is called currency.

The Great Hold-Out by the institutions created an awful void or gap in the marketplace, not only in the housing sector but also in the business industry. The longer they hold back these funds, the longer it takes to gain consumer confidence. The lower confidence, the less spending consumers do, which in turn forces businesses nationwide to send workers to the employment lines. An horrific spiral has taken effect that we all feel, with the increase of fuel, food and other goods.

Most midsize to large corporations have many financial resources to choose from. Alongside the bailouts, these firms typically can print and sell more stock shares, sell or lease assets, lower their work expense by using pension buy-outs & layoffs and a host of other methods to increase their bottom line. Conversely, the small business sector which has been reported to employ nearly 70% of the US workforce, has the most difficult, limited and restrictive lending resources available. Something is definitely wrong here.

In recent years, entrepreneurs have stepped up to fill the need when banks would not. By pooling capital from private sources such as pensions and retirement fund administrators and other sources, a new industry emerged from the ashes, the alternative business finance industry. Although, this industry has been in existence for some time, the creation of non-collaterized business credit, merchant cash advance and lines of credit for small firms have never been in greater demand as they are today.

In this 11-part series, you will learn how these unsecured business loans work and how they are structured, what are the advantages and disadvantages compared to traditional bank lending; so you can make an informative decision on what financing is right for your business, bank funding vs private funding. The choice is yours …