Capital sources: Finance companies

There are a number of local and national companies out there whose sole business it is to lend money. Many banks also own finance companies. By offering receivables, inventories or similar holdings as collateral, a business owner can get a short-term loan.

Interest rates charged by these firms are generally higher than average, however, so investigate all the options. The rates may run as high as prime plus 10 percent, depending on the loan and the risk. Loans from finance companies are generally easier and more convenient to arrange than others, but you pay for the convenience.

What you pay:
The finance company branch of one popular Internet bank is offering 20 percent interest on unsecured loans in the $2,000 to $5,000 range. At that price, a $5,000, three-year loan would give you monthly payments of $185 with a total of $1,689 in interest.

Finance companies will offer secured loans as well, with interest rates running at about 12 percent. Finance companies can be found in the telephone book or online. They usually require an application, an application fee, and much of the same information that other lenders look for.