Banks won't lend? Use these guys instead

• Financing type: Merchant Cash Advance

What it is: Mobile payment company Square launched its Square Capital initiative last October to help small businesses with financing. There's a flat fee up front that's paid back daily (which usually works out to about 10% to 14% of the advance).

Who it's best for: Merchants using Square who are looking to grow their business (and want to avoid the lengthy bank application process). Square approaches its customers, not the other way around.

Potential pitfalls: Only businesses that know "with certainty" that they're just having a slow period should accept merchant cash advances, says Manny Skevofilax of Portal CFO Consulting. In fact, he strongly warns his small business clients against alternative financing providers.

"It sounds great and sexy when you're an entrepreneur, but it's really not good for your financial health," he says.

Financing amounts: No set minimum or maximum

Fees: Flat dollar fee varies depending on advance

Other merchant-specific options: PayPal Working Capital -- PayPal also offers its vendors a unique financing alternative: merchants can borrow up to 8% of their yearly revenue (up to $20,000) through the program. Clients choose what percentage of daily PayPal sales they'll use to repay the loan. Loans have flat fees based on the amount borrowed, the repayment plan and one's PayPal sales history.

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