Samuel Demisse runs a successful coffee-import business, but he needed more capital to order another shipment of beans. After being turned down by banks, he turned to an alternative lender that offered him $75,000 at double the interest rate a bank would have charged. Demisse jumped at the opportunity. As bank lending continues to be tight, many small-business owners like Demisse are using nontraditional sources of financing, including private lenders, strategic alliances and factoring, to keep their businesses running smoothly.
Published in Brief: