There are many sources of capital available. Banks, savings and loans, and commercial finance companies have long been the major sources of business financing. Many business owners that get turned down for a loan from a bank turn to a commercial finance company. Commercial finance companies specialize in making working capital or investment capital loans to small business. They have more flexibility in the type of loans and investment that they can make. When choosing a financing source, pay particular attention to the reputation of the venture financing you use.
Commercial finance company makes loans on the strength of your collateral rather than your track record or potential. You should be aware that almost all commercial finance companies are strict about collateral requirements and higher interest rates than bank loan.