By Ami Kassar My last post seemed to stir up some controversy. I've been labeled a "merchant cash advance industry hater" regarding my push for more transparency on short-term loans. I want to be clear that I am not an opponent of alternative lending. I think there is, and should be, an ecosystem for entrepreneurs to be able to borrow money if they do not initially qualify for bank loans, including even loans backed by the U.S. Small Business Administration.The reality in America today is there are hundreds or perhaps even thousands of alternative lenders lined up and ready to lend money to entrepreneurs. They come in all different shapes and sizes – short-term lenders, factors, micro lenders, merchant-cash-advance lenders, hard-money lenders, equipment-leasing companies, just to name a few. And as they are not regulated by the Federal Deposit Insurance Corporation, they have a great amount of flexibility in their pricing, marketing, and contracts.In a perfect world, all alternative lenders should help small businesses get to the point that they are "bankable." For many small businesses, being bankable means that they can graduate to bank loans when profits increase, credit scores improve and collateral is built up by gaining assets such as vehicles, buildings, inventory and accounts receivable. And amongst the alternative lenders there are gems that try to accomplish exactly this – and maintain transparent pricing that is clear and easy to understand, with no or minimal pre-payment penalties.One question is how we can help these lenders raise to the top of the pile, and make it easier for weary and time-pressed entrepreneurs to pick them over others.I suggest that it's time for a "TRUSTe" initiative for small-business lending. TRUSTe issues its TRUSTe seal to businesses that meet its requirements for protection of consumer data. To display the privacy seal, the businesses have to complete a certification, submit to ongoing site monitoring and participate in a TRUSTe consumer-dispute resolution program. The idea is that when the consumer sees the TRUSTe seal, according to TRUSTe, the business "demonstrates its commitment to protecting consumers and respecting their personal information." Why not offer a similar service for alternative lenders? Create a set of standards for clear and transparent pricing, reasonable penalties for paying off the loan balance earlier than is called for, as well as disclosure of the fact that they may attach liens to some or all of a borrower's assets. And if alternative lenders meet these standards, they can place the logo on their websites.Of course, loan brokers like myself who charge fees to help entrepreneurs reach lenders—and to arrange their loans—also aren't currently regulated. Some may see that as a problem. As recently reported, some commercial loan brokers are unscrupulous, and others are no doubt expensive. To be fair, I believe we, too, could benefit from having a similar set of standards around clear and transparent pricing, as well as a seal that shows which of us have track records of properly educating our clients about all the risks and pros and cons of the various loan products we peddle.The hope for all companies is that eventually the borrowed money will come at a reasonable rate with the best possible terms. What we have to do as an industry is make sure the path to get there is thoughtful and reasonable. Write to WSJsmallbusiness@wsj.com