Inc.:
**1. Search for an angel investor. ** Check out this angel directory. It’s organized by geographic area and includes contact information for the angel groups. A caution, however: as banks are raising lending and investment standards, so too are angel investors.
2. Tap self-directed IRAs. Individual retirement accounts can be invested in privately held companies, as long as you follow the proper regulations.
3. Think outside the bank. Look into city and state economic development funds, which often have money for expanding companies. Look for local business incubators or nonprofits, such as JumpStart in Cleveland, that have funds for start-ups.
4. Make sure your personal debt is in order. The credit identity of small-business owners often is the credit identity of their companies. Personal financial stresses can hit their businesses hard. A bad personal credit score will make it harder to find a business loan, particularly in today’s risk-averse environment.
5. Use more than your home as collateral. If your home is shrinking in value, don’t use it as collateral. Instead, try to get a business line of credit based on the assets or profitability of your company. If you have just landed a major contract, tell your banker about it, and explain what profits you are expecting from the deal and why.
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