Structured settlements

You need the green stuff, and your bank isn't lending. Here are six options.

Lenders aren't just skittish these days--they're downright terrified. But bank loans, credit lines, angel investors and even generous uncles aren't the only ways small-business owners can raise a few bucks.

The alternative-finance industry is massive, employing some 35,000 people at U.S. commercial banks, thrifts, credit unions, independent finance companies and hedge funds, among other lenders.

The outstanding dollar amount of business-to-business loans hit $545 billion in 2007, nearly triple the total from a decade ago, according to the latest figures from the Commercial Finance Association. Save for two contractions, during the 1990-91 recession and the 2001 tech bust, the total dollar amount of asset-based loans has grown each year since 1976. Throw in business-to-consumer transactions, and that debt pile is now north of $1 trillion.

Six Ways To Raise Cash Now

Tapping that fat spigot of liquidity will cost you. But then, taking a haircut is better than going out of business. Here are six financing alternatives--some more expensive than others--for those who need the money right now.

Factoring

This maneuver involves selling the receivables on your balance sheet at a discount to raise money today. The invoices can be for anything from manufactured goods to medical services purchased by a business or government. Factors have a first lien on those cash flows, so factoring arrangements are hard to strike if you have a judgment against your business or if your bank has a blanket lien on your assets to secure a loan.

Some banks have factoring practices, and there are many established stand-alone factoring firms. Now, with credit so tight, smaller shops are springing up. You can find scores of factoring organizations through the International Factoring Association or with a simple Google (nasdaq: GOOG - news - people ) search.

Consumer Installment Financing

This is a twist on factoring, but for business-to-consumer arrangements with longer time frames. Say you sell delivered-food plans to people too busy to shop. Your customers might sign up for a monthly installment plan, to be paid out over two years, but you need cash now. A consumer-installment financing firm is happy to buy those contracts at a discount to their present value. But that's not your only cost of funds: You'll also have to set aside a percentage to cover the deadbeats who don't pay up; if the paper eventually performs, you'll get that money back, but you're still short that cash today. read more