Many folks that would like to start a business, or expand their business into something great will go and look for a venture capitalist, or an angel investor. Especially when they find out that they can’t get all the money they need from a local bank because they don’t have the collateral to put up. This often happens when an entrepreneur has every single dollar he has/had invested in his own company already. From a risk reward standpoint, and considering the way that bankers do business, often entrepreneurs get frustrated, and they turn to other sources.But where do they turn you ask, and what is the best way to get a commercial loan or perhaps take on an investor who doesn’t require much equity – where should they start looking? Well, in attempting to answer this question, I remember an interesting article I read not too long ago the Wall Street Journal. The article was titled “Peer to Peer Loans – Business Owners Grow-Fed up with Banks, Entrepreneurs Turn to Internet Sites,” by Angus Lotten published on June 16, 2011. The article stated;”The website works like eBay style marketplaces, matching borrowers to lenders. Two of the largest websites of this type have generated more than $500 million in personal loans in the past five years. And while most of the loans are used to pay off credit cards, the portion of the funds used to finance small businesses is rising.”This is quite interesting isn’t it? This is something completely new, but it makes sense in our new information age, especially considering on how everything is interconnected, and how social networks are supposed to operate. Imagine how many jobs could be provided each time $100 million is lent to small businesses? These are small businesses which are expanding their operations, or just starting, and that money will be used to hire more employees, buy equipment, and all of that activity will spur on the economy, and also increase the tax base.In other words, I see it as all good, and I got to thinking the other day about all this, and it appears to me that this would have been great to have in years past. For instance, before retirement I ran a franchising company, and we always had franchisees who were looking for funds to start their business, and it was amazing how local banks would give them the runaround, and cost us precious time in getting their businesses started.Maybe if this trend continues, we can see better job growth, better lending practices, and better use of money, at lower interest rates due to the bidding aspect, sure sounds like free-market capitalism to me – Internet style even. Indeed I hope you will please consider all this and think on it. If you have such a new concept up and running, please shoot me an e-mail, because I would love to hear what you are doing. Let’s talk about it, so I can write on it.