P2P funding alternatives for small businesses

Entrepreneur Magazine suggests to small businesses 5 ways to raise money today. Among them: Turn to the Web. "For a small amount of working capital, try peer-to-peer networks, which marry lenders and borrowers online. Though it's a relatively new concept, "over the next three to four years, peer-to-peer lending will take a significant leap in providing necessary capital to small-business owners," says Steve Bloom, an advisor and the former chair at SCORE's Atlanta chapter."

Where to start? While waiting for Prosper to come back on-line, try Loanio, Lending Club, and Pertuity Direct.

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Small businesses should also try avoid borrowing by cutting expenses that can be replaced with cheaper alternatives. Advertising is a big area that most small business are over spending in. With online advertising solutions, companies can dramatically reduce and eliminate their offline advertising which is more costly.