Money is a pretty important resource when it comes to starting or expanding a small business. Sooner or later you're going to need some. For many small businesses, debt financing is the way to go. If you choose to go the traditional route to take out a loan, it shouldn't be too difficult as long as you have good credit, are free of any major debt and have enough equity to qualify.

There are other debt financing solutions available when you need funding for your business. Some are well known,like debt consolidation financing. Others are a welcomed alternative when you don't qualify for traditional debt financing. Having a variety of debt financing options solutions available can really help when you are just getting your business off the ground or taking it to the next level. This guide will encourage you to:

1. Explore alternative financing options for your business.

2. Use credit cards carefully for financing small purchases.

3. Check out banks and debt consolidation financing options.

Action Steps
The best contacts and resources to help you get it done

Seek out angel investors

Having an angel investor to help finance the early stages of your small business debt financing can be a huge help. If you find an angel investor who really believes in your vision, they will be willing to take more financial risks when other debt funding sources won't. The bank may consider your new business too much of a risk to offer you business debt financing, and venture capitalists may not bother if they aren't convinced that your business can produce a high enough profit. The good news is you can negotiate with an angel investor for a long-term debt financing over a longer period of time than more traditional debt financing options.

I recommend: Raise Capital and Go BIG Network help small businesses locate compatible angel investors for their businesses and provide debt financing information.

Consult with your local Small Business Administration

If you try to obtain small business debt financing through a bank or other traditional means and get turned down, consult with your local SBA for a loan.

I recommend: The SBA may be able to offer debt financing when there are no other debt funding options available. You will need to prove that you were unable to secure financing through a commercial bank.

Used wisely, credit cards can be a short term debt financing solution

Credit cards can be one of the easiest ways to get the cash you need fast. It's a good idea to make this a short-term solution since interest rates for cash withdrawls and balances that get carried over can cost you in the end.

I recommend: Competition for your business among business credit card companies like Visa, MasterCard and American Express makes it easier than ever to get a card with no annual fee, and zero introductory APR and no charge for balance transfers for up to 12 months. Always read the fine print before making your decision.

Consider commercial banks

Many small businesses choose commercial lenders for corporate debt financing. Your chances of getting a loan are good if you have already been in business for some time and have collateral. You can also borrow up to $100,000 or less as an unsecured loan using your personal credit history to determine approval.

I recommend: Banks like Wachovia and Bank of America can discuss corporate debt financing terms available for your business.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  If you plan to obtain a commercial loan with your bank in the near future as your business continues to grow, start building a positive relationship with your bank today by maintaining your banking accounts and avoiding overdrafts to your business checking account.