Loan alternatives exist -- for a price

10/12/2010 | Sun (Baltimore), The

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.

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