at a discount. Then, they collect your accounts at full face value. This can be a very expensive way to raise cash-I only recommend it as a last resort. Some factors require that your accounts pay them directly instead of paying you. This can cause problems with customers, wholl assume that you are having serious cash flow problems. Approach factors with caution and make sure you understand the implications of the agreement before you sign it.     Factors can buy your receivables with or without recourse-that is, your guarantee of payment to the factor. Factoring with recourse means that the factor pays you a higher percentage of the receivable in cash and makes raising cash less expensive. But you can be seriously damaged if a big account fails to pay its bill and you have to make good on your guarantee.     5. Venture Capitalists     Some venture capitalists specialize in funding businesses after they have a track record and are willing to take a smaller return as a result. The industry is changing, and more venture capitalists are looking at a wider range of possibilities and client companies. Often a venture capitalist will specialize in a market area and company size or stage of growth. The possibilities have increased, and so has the work involved in finding just the right backers. (Also, see the discussion on venture capitalists for start-ups in Section C7, above.)     6. Money Brokers and Finders     Money brokers and finders develop and maintain lists of investors and lenders interested in businesses. For a fee, they will circulate your financing proposal to potential money sources. A legitimate broker or finder can look at your business plan and know if he has a good chance of finding money for you.     Finders simply introduce you to possible backers; they cannot negotiate on your behalf, and they are not licensed. Money brokers are licensed and can negotiate on your behalf. Fees for both finders and brokers are comparable. I recommend that you work with people who work on a contingency fee basis only and do not require up-front fees. While some worthwhile finders and brokers require an up-front fee, there are some non-legitimate people who take the up-front fees and disappear. Also, I recommend that you obtain references from any broker or finder and that you verify the references.     Total fees, including both up-front and contingency, can range up to 10% or 15% of the money raised, so be cautious and remember that everything is negotiable. You can contact finders and brokers in the financial section of your newspapers classified advertising section. E. If No One Will Finance Your Business, Try Again     Lets say that youve been unsuccessful in your attempts to raise money for your business from the primary sources listed in Sections C and D above, or you have raised some money, but still need more. What do you do next? The first step is to go back to the people who initially seemed interested but ultimately turned you down and find out why. This is not a waste of time. If you get the same answer from several people, you will know what you have to work on. And then there is the possibility that someones circumstances have changed and they have more funds now. Remember, it took the man who invented dry paper copying 21 years to raise the money to get the first photocopier made.     If a bank lending officer, or even two or three, turned you down but you still think borrowing is a