When approving traditional term loans, financial institutions look to work with companies that are well-established, have strong cash flow, and are therefore most likely to be able to keep pace with the repayment schedule. But what if you're just starting out or have made some mistakes in the past that have tarnished your credit score?

Collateral-backed loans can be a great alternative. Invoice and equipment financing are two types of collateral-backed loans that offer win-win solutions for both business owners and lenders. Business owners can get the cash they need to keep their business afloat while they wait for invoices to come in or to purchase necessary equipment, and lenders feel more secure doing business with a borrower who has less-than-stellar credit knowing that the loan is backed by something tangible. Talk to your banker or colleagues to find reputable lenders.