Each year, 9% of businesses close. Only 8% are opened. 50% of new business owners will fail within their first year.

These numbers may seem daunting, but it's still a great idea to start a new business. Without great risks, there can be no great rewards.

However, if you're looking to succeed, you need to know about the various business funding solutions available to you. Many people fail at business because they didn't secure enough funding.

To help ensure that your business succeeds, keep reading. We're sharing with you small business funding options to help you get and stay in the black.

1. Getting a Line of Credit is One of the Most Common Business Funding Solutions

Lines of credit work in a similar fashion to credit cards. You have access to a specific amount of money that you can use as you wish.

It's one of those small business funding options that's perfect for short-term expenses like expanding your inventory, covering operating costs, and purchasing equipment.

Interest is only charged on the amount of money you withdraw. It's worth noting that business lines of credit interest rates are higher than prime lending rates but lower than typical credit card rates.

2. SBA Loans

The Small Business Administration (SBA) has a lot to offer business owners. There's free counseling, courses you can take, and they also offer alternative business funding.

While partially backed by the government they are issued through a bank using typical banking guidelines. The SBA offers several alternative funding loans for small businesses. Let's take a look at a few of them:

SBA 7

The most common SBA loan is the SBA 7. You can borrow up to $1 million for a maximum of six years. The SBA typically will guarantee up to 75% of the loan value.

SBA 504

SBA 504 is perfect if you're looking to purchase real estate. It's designed to increase the level of employment at a company. This loan comes with a guaranteed value up to 90% of the appraised value of the property.

SBA MicroLoan

If you're looking to purchase equipment, the SBA MicroLoan is a great option. You can borrow up to $25,000 for up to six years. Your interest rate won't exceed the prime plus 4%.

SBA Fastrak

You can get approved for the SBA Fastrak loan without going through the SBA. It's offered through several of the larger national banks. This loan is approved up to $100,000 and the SBA guarantees up to 50% of the value of the loan.

3. Online Loans

The internet offers plenty of small business financing options. You'll find online lenders offers similar products to banks with a few, but important differences.

Your credit score isn't as important to an online lender as it is to a bank. Neither is how long you've been in business and your annual revenue.

It's easier to apply online and once approved, you receive your funds more quickly. But, in exchange for fewer restrictions and quicker funding, you're paying higher interest rates than a bank loan typically charges.

4. Peer to Peer Loans

Peer-to-peer loans (P2P) is one of the newer options to alternative funding. With this type of loan, you borrow funds from peers rather than a bank.

These funds come from everyday people who want to invest in your business. However, P2P lending isn't a great option if you have bad credit. These investors are rather averse to taking risks.

But, if your credit is good, it's a great way to get funding much faster than you would if you went through a bank. Their guidelines for approval are also far less stringent than banks.

5. Angel Investors

Angel investing is similar to P2P loans but these investors tend to focus only on early-stage or startup companies. They also receive a 20 to 25 percent return on their investment.

And it's not just their money that can be a huge asset to the success of your business. Often, you end up with an investor who has actual experience in your line of work and can help you grow.

Angel investors helped start Costco and Google. Most of them are located in large cities like New York and San Francisco.

6. Crowdfunding

Crowdfunding is a great way to secure funding if you don't think the banks or other types of investors will loan you any money. Sites like Kickstarter and Indiegogo are great at financing small businesses.

You can pool together small investments made from several investors rather than hoping that one investment source will come through. However, make sure you understand exactly what you're getting into.

Some sites require businesses to reach their full financial goal before they receive any funds. If your goal is $10,000 and you only get $9,000, you may not get any of the money.

Some sites also have payment processing fees, making it harder for you to reach your goal quickly.

7. Borrow From People You Know

Borrowing from people you know is great because none of them are going to ask you for your credit score. You also should be able to gain access to the money immediately.

But if you borrow from yourself and you can't pay yourself back, you could damage your credit score even further. You could also end up lacking funds to pay your bills.

And if you borrow from friends or family and can't afford to pay them back, it can cause hard feelings and damage relationships. Only do this if you know you can pay everyone back.

8. Merchant Cash Advance

A merchant cash advance is a hugely popular form of alternative funding. It's built specifically for vendors who use credit cards.

It works by having a business leverage their future credit card sales for a lump sum. And because these types of loans take your credit card statements into account versus your credit history, it's a flexible alternative to a traditional loan.

9. Grants

Grants are basically free money, which is a great solution for any business owner.

However, free money through a grant is the most difficult type of business financing to get. Yet, despite the difficulties, if you think you're eligible, it's definitely worth looking into.

Some grants are funded by the government but you can also look for grants through NGOs and even privately held businesses.

Become Financially Savvy

The more financially savvy you become, the easier it is for you to find business funding solutions that work best for your company. And we can help.

Keep coming back to our site to learn how to be financially resourceful.