According to the Wells Fargo bank, the average small business owner spends about $10,000 in start-up costs. More than half of the small business owners surveyed by Wells Fargo told researchers that they would have had an easier time of starting their business if they had more access to funding.

In the current economic environment, getting a loan for a new business venture can be difficult, as traditional lenders have become extremely risk averse. If you’re a first time business owner, and if your current income or credit is less than stellar, you may have a very hard time in convincing a bank to lend you the start up capital you need to get your business off the ground. There are a number of alternatives to traditional bank loans for your new business, however.

Consider the following alternatives to traditional bank loans when searching for funding to start a new small business.

1. Credit cards – If you only need a small amount of start-up capital or if you’ll be able to repay the borrowed money quickly from immediate sales, credit cards can provide a good source of start-up funding for businesses, particularly for entrepreneurs who may have difficulty obtaining credit from traditional lenders. Beware of high interest rates and over-the-limit fees, however.

2. Family – Family members can provide start-up funding for businesses, and may often be a cheaper and better source of funding than banks or lenders. If you get family support for your business, be sure that the terms of the funding (whether it’s a gift or a loan, etc.) are clearly spelled out and understood by all parties as money disputes can often ruin family relationships.

3. Partners – If you have a great idea for a business, but don’t have the capital to get it off the ground, you may want to consider taking on a partner. A business partner can help provide you with capital, or may improve your chances of securing a loan from a bank or other lender. Make sure to get your partnership agreement in writing and vet your potential partner before taking him or her on, however, as a bad partner can sink your business just as quickly as a lack of start-up capital can.

4. Investors – Another way of raising capital for your small business is by selling an ownership stake to an outside investor. Investors can provide capital, and those with business experience can provide expert advice. Understand, however, that selling an investor ownership stake also gives them a seat at the table and a voice in business decisions. It also could potentially open you up to lawsuits if the business founders or if the investor doesn’t like the direction you’re taking the business. Also, if you end up needing more money the investor could end up buying a larger and larger share from you until he or she is the majority owner. Before selling a stake in ownership, be sure you and your investor share similar visions for your business and do a little due diligence and check out your investor’s track record.

5. Asset sales – If you have a small business concept you really believe in, and a tangible asset you can mortgage or sell for capital, this is another means of raising money for a new business venture. Steve Jobs helped start Apple by selling of a Volkswagen bus he owned, and today the company is worth billions. Assets you can sell or put up for loan collateral include investments, vehicles, land – really, pretty much any tangible asset of significant value.

6. Small Business Administration loans – The SBA makes a number of loans available to entrepreneurs in order to spur certain business activities desired by the government, such as investment in disadvantaged communities. To find out if your small business could be eligible for a SBA loan, contact the Small Business Administration or contact your bank.

7. Mortgages – Start-up capital for your new business can be obtained by refinancing your home and borrowing against the equity in your home. Most people’s homes are their most valuable asset, and present a source of capital for ventures such as starting a business or providing for their children’s college education. However, if you are going to tap the equity in your home to obtain financing for your business, be wary of the terms of the loan you’re getting and also have a back-up plan to help you pay off the debt in case the worst happens and your business founders.

8. Credit unions – Credit unions exist to help consumers take out loans for homes and cars and to help small businesses get off the ground. Because of their mission, and their status as non-profit financial institutions, they may be more willing to make small business loans than traditional lenders such as banks. And chances are that you’ll be able to obtain a loan at a lower rate than you would be able to get from a bank. To get a loan from a credit union, you’ll need to be a member, but in most cases membership is obtainable by just opening an account with a nominal amount of money.

When taking advantage of a non-traditional source of funding for your business, always be sure to be crystal clear on the terms of your loan, partnership, investment, etc. Also get the agreement in writing, if possible. Making sure all terms are clear from the beginning is key to avoiding problems later, whether your business is successful or not.

You can also find funding flexibility in starting your new business by finding costs you can cut or delay and by starting off the business on a smaller scale. With careful business management and cost control, and creative financing decisions, you can find the money you need to prime the pump for your new business.

Finding financing to start up your small business is a key hurdle that many first time small business people find difficulty in negotiating. However, there are ample financing opportunities for would-be entrepreneurs out there, it’s just a matter of knowing where to look and how to ask.

The first step you need to take in acquiring capital for a small business is to write a business plan. A business plan is a document that outlines the basis and the mission of your business and how you expect to launch it and help it grow in the current economic environment. Business plans help lenders assess the viability of your business and the competence of its management, so having a solid business plan is important.  A good business plan should have an executive summary, market and industry analysis, operational overview and financial segment that gives estimates of how the business means to move forward to profitability.

Many small businesses are launched with investments from family, friends and partners. A key advantage of this arrangement is that the money can often be raised with a minimum of paperwork, but the amount of money available in these arrangements is often limited. Also, it can cause strains in friendships and family relationships, particularly if the business fails to prosper.

Banks and other lenders are an important source of capital for small businesses. When borrowing from a bank or financial institution, you typically must put up collateral and also convince loan officers that you and your business are good credit risks.

If you have difficulty in getting a loan from a bank, or if the interest rates the bank wants to charge you for a loan are exorbitant, consider doing business with a credit union. Credit unions are designed to provide members with low-interest loans, particularly for personal needs like mortgages, car loans and small business startup capital.

The Small Business Administration makes a variety of loans available to people who want to start a business. The SBA typically makes these types of loans available:

7a loans are typically loans made through banks and other lending institutions to small businesses with special needs, such as export businesses or businesses that work in rural areas or other highly specialized purposes.  For example, some 7a loans are available to entrepreneurs who want to start businesses in underserved or undeveloped areas.

The SBA’s microloan program makes small loans (less than $50,000) to businesses to buy equipment, material or machinery. The loans may also be made to daycare centers. The average microloan is for $13,500.

The SBA’s CDC/504 loan program typically awards loans to businesses to buy equipment or facilities. The loans are intended to develop communities and larger amounts can be borrowed by businesses meeting certain policy goals such as hiring minorities and women or business district revitalization.

Perhaps the best way of finding out about the small business loans available to you is to contact the Small Business Administration. This government agency can help you determine if you’re eligible for any government-sponsored small business loans or other programs to help you acquire capital.

Some people may have enough money to start their own company without having to approach people for a loan. That may not be the wisest move for them to make. Many people also believe that they do not have enough money to start their own company and so they put off opening their business until they can get enough to open their business. If you find yourself in that position there are a variety of things you can do now to get your business running without having to wait years for you to get enough self funding.

The first step you may want to take is to look for investors. These are people that you can convince to give you money for your company in exchange for a percentage of control in your company or a percentage of profits. The good part about this is you will still be able to keep your own available money.

That money can then be used in other ways than to just invest into the company. The bad news is that if you aren’t careful, you may wind up giving away more control of your company than you are able to retain due to having to take money from these people. If you are to take on investors, always make sure that there is no way that they will be able to have more than 51% control in your company. If they have more than you do, then they have a controlling share in your company and may force your company to head in a direction you would not want. Even worse, they may force you out of the company. If you feel as though that would not be possible, then you may not want to get investors and to search for money elsewhere.

The next step that many people take is to go to their local bank and to apply for a small business loan. The money that you get from there will have an interest rate based upon your credit. Many institutions have government backed SBA loans but they will want you to fill out many forms so that they can verify that you are going to use the money to start up a small business.

Be prepared to bring many financial documents both commercial and personal as well as a copy of your business plan. The good news is that after you have finished completing all of the required forms and producing all of the information that they need, your lender will send off your application to get processed by the government. This could take a while though but it would give you time to finalize your business ideas.

You could also apply for a personal loan for your business but this will not be backed by the government. This is recommended if you feel you cannot wait for the government to process your loan and you need the money now. The interest rate varies and you could end up paying more for this loan than for the government backed one.

There are also government loans based upon your background, location, and the type of business that you are planning to open. These can be quite competitive. You may also want to check your local non-profit organization about getting loans for your business. Some states and cities also give loans to companies that are willing to start small businesses inside of their limits.

The last thing you should do when opening your own small business is to use your own money. Invariably when you open the doors to your company, you are going to realize things that are wrong. It could be something simple such as needing a new sign for the window to complicated things, like needing to install a rotating door. That is where your money will come in. After the building has been financed and the major purchases have been made you can use your money. If you use the loans that you received earlier for your company, you will be wasting the loan. It will also be useful when applying for one of the loans because the more money that you are able to have on hand or in the bank, the more likely the bank is to loan you the money. If you use all of your money before to finance the building or purchase equipment and then apply for the loan, the bank will see that you have no liquid assets. That will raise their wariness about loaning to you and may cost you the loan.

There are many different ways to go about finding financing for your new small business . The most important thing is to get as much information as you can and to build up your assets before approaching anyone to invest into your company.