When you've sunk money and sweat into a business, of course you don't want to lose it -- and as a result, you might be tempted to try some tactics that could cause you serious financial trouble in the long run. Here are some options that most small business owners should avoid.

Use Merchant Cash Advances Only in Certain Circumstances

If your business has been hit, directly or indirectly, by the downturn in consumer spending, a little extra cash probably sounds very good about now. One way to get some is through a merchant cash advance program. Typically, they work like this: A cash advance company (AdvanceMe is the oldest and most reputable company in this field) buys your future credit card sales and advances you a portion of the anticipated receipts. Through an agreement with your credit card processor, you authorize the company to automatically take a portion of your daily credit card sales.

On the plus side, if your credit sales don't end up being enough to pay back the loan, you might be off the hook for the rest of what you owe, as long as you don't switch credit card processors, because your personal guarantee is not required. The down side is that cash advance companies charge high fees, which often work out annually to as much as 25% or even 60% of the value of each advance. There is no way a struggling business can absorb these costs.

Paying such high interest usually makes sense only if you're investing the money in something with a high rate of return, so that you can easily pay the fees. So although it might make sense in an emergency, don't go this route to pay regular bills. If getting a merchant cash advance is your only hope of surviving beyond a month or two, it's probably time to think about closing your business.

Don't Max Out Your Credit Cards

If you have nowhere else to get cheaper money, you might be tempted to borrow heavily against your credit cards. For three big reasons, this is usually a poor idea. First, interest rates are typically astronomical, as are late fees and an assortment of other penalties. Second, credit card debt is a personal obligation, so even if your business is organized as an LLC or corporation, if it fails, you'll be obligated to repay the credit card companies. By contrast, unsecured business debts of a corporation or LLC are not your personal responsibility. Third, relying on credit cards usually means other strategies to raise cash have failed, a strong signal that your business can't be saved and that you are pushing yourself closer to bankruptcy.

Don't Borrow Against Your House

Given the current reality of depressed house prices and tight credit, you might not qualify for a second mortgage or a home equity loan, especially if your business is losing money. But even if you can take out a loan, think at least three times before you do.

Taking money out of a good house to put it into a questionable business makes sense only if you really have an almost failsafe plan to return your business to profitability. Especially if your business is a corporation or LLC, meaning your business and personal debts are separate (see Nolo's article When You Can't Pay Your Business Debts: Personal Liability and Bankruptcy Options), borrowing against your house risks taking money out of a relatively safe and legally protected personal investment to move it into a troubled business.

If you operate as a sole proprietor or have already personally guaranteed the debt of your LLC or corporation, you might think it makes sense to borrow against your house, at least compared to running up your credit cards. After all, your personal assets are already on the hook to pay business debts, and the interest rate on a second mortgage will be far lower than that on a credit card balance. But there is a very important potential downside. When you borrow against your house, you turn an unsecured debt into a secured debt. That means that, especially in states with almost unlimited "homestead" exemptions (Florida, Iowa, Kansas, Massachusetts, Oklahoma, Rhode Island, South Dakota, and Texas), you are essentially giving up your state's homeowner protections. If you can't pay the home equity debt, you could lose your house.

For more information on strategies that might work for your business, see see Save Your Small Business: 10 Crucial Strategies to Survive Hard Times or Close Down and Move On, by Ralph Warner and Bethany K. Laurence (Nolo).