There are a variety of sources for loans to consider when you need money. Some may surprise you.

• If You Have A Business  
• Commercial Banks  
• Loans From Other Consumers (Consumer To Consumer Loans)  
• Credit Unions  
• Employer  
• Borrow From Family And Friends  
• Home Equity Line Of Credit - HELOC 
• Borrow Against Life Insurance
  • A Friendly Loan (Such as from a beneficiary)
  • Borrow From The Life Insurance Company 
  • A Commerical Loan Against Your Life Insurance Policy.
  • You may also be able to get money from a life insurance policy as a Living Benefit or through a sale.
• Payday Loans (for people with a paycheck or other ongoing income such as from Social Security Disability Income Insurance).  
• Title Loans (loans against a car or other vehicle) 
• Refinance Your Mortgage  
• Refund Anticipation Loans  
• Loans Using Securities Such As Stocks And Bonds As Collateral
• Borrow From Your Retirement Fund

To find out whether you can borrow from a commercial bank, you can call or visit the banks in your area. When you meet with a loan officer, be prepared to discuss your income and expenses. The bank will check your credit score. The key elements to consider is how much the bank is willing to lend you, at what rate of interest, for how long,and whether there are additional costs. If you think you may be able to pay off the loan early, ask about what costs, if any, are involved in prepayment. In addition to calling or stopping in a local bank, look on line at such sites as www.bankrate.com .

NOTE: Additional lenders may be a source of a loan. For instance, a list of lenders is available at www.NerdWallet.com . Click on "loans", then on "personal loans."

A credit union is a non-profit institution that is owned and operated entirely by its members. Credit unions provide financial services for their members - including lending (as well as savings.) To join a credit union, you must generally meet eligibility criteria.

Credit unions generally have lower interest rates and fees on loans.

If you are not a member of a credit union, following are alternatives for finding a credit union. Be sure to check eligibility requirements.

• Check with your employer, family members or organizations of which you're a member to learn about local credit unions and to find out if you are eligible to join one.
• Several web sites list credit unions by ZIP code. For instance:
  • National Association of Federal Credit Unions: www.culookup.com
  • National Credit Union Administration: www.ncua.gov

Perhaps you can borrow money from your current, or an ex-employer. If you're considering borrowing from your current employer, speak with your Advisor for advice before you do.

Be sure to remind your employer how valuable you are to the company.

NOTE: If you cannot borrow from your employer, you likely qualify for what is known as a Payday Loan because of your paycheck. To learn more, click here.

Many people have more money withheld from their paycheck each year than they will owe in taxes. A refund anticipation loan is a cash advance against income tax refunds you expect to receive. Your tax refund pays back the loan.

Refund anticipation loans come with very high interest rates. Interest rates are particularly high when you consider that high interest rates usually reflect a great degree of risk that the lender will not be paid back. In this case, repayment comes from the U.S. Treasury.

Refund anticipation loans are not worth considering unless immediate cash is an absolute necessity.

You can get such a loan through your accountant, car dealer, check-cashing service, retailers, internet sites and tax-software companies.

Interest rates on loans from your securities broker are generally much lower than those charged on credit cards.

The risk is that if the securities decrease in value, you may have to sell them to meet a margin call from your broker.

Alternatives for borrowing money, using your life insurance as collateral are:

Cash Value

If your life insurance has a cash value, you can borrow most, if not all, of it. Interest rates are usually lower than commercial rates.

You don't have to pay the money back but you do still have to pay premiums (unless there is a waiver because of disability.) If you don't repay the debt, when you die, the amount that is outstanding plus interest will be deducted from the death benefit payable to your beneficiaries.

Check with the insurance company to find out what affect, if any, the loan will have on future dividends, premiums and cash value.

"Living Benefit" (Also known as "Accelerated Death Benefit.")

Your policy may have a "living benefit" also known as an "Accelerated death benefit." Under this provision, the insurance company advances you part of the death benefit, often as a loan. If the amount is a loan, it is repaid from the death benefit. The difference between the amount and the benefit goes at your death to your beneficiaries.

Even if your policy does not specifically say there is a living benefit, it is worth checking with the insurance company. They may be able to add the benefit - at no cost.

Friends And Family

You can borrow money from friends or family. See Friendly Loans Against Your Life Insurance Policy

Note: If you have a shortened life expectancy, or you are over age 65, you may be able to sell your policy in a Viatical Settlement or Senior (Life) Settlement.

Commercial Lenders

There are a few commercial companies that will loan you money against your policy. See A Commerical Loan Against Your Life Insurance Policy.

Most employers will allow loans from a 401(k) or other retirement plan. Borrowing is relatively easy. Generally you can borrow up to 50% of the money that is vested (belong to you) in the plan, up to a maximum of $50,000. Interest rates are usually reasonable.

On the downside:

• You put your retirement at risk.
• Interest is generally not deductible from your taxes
• The loan must be repaid in 5 years or less
• If you lose your job, the loan usually becomes due immediately.

To access the money, ask the benefits department for the forms.

For more information, see:  Borrowing Moneyt From A 401K, TSA Or Other Defined Contribution Retirement Plan

If you have a business and you have receivables, consider using the receivables as collateral for a loan (known as “factoring.”) Factors advance between 50 and 90% of the value of your receivables. The factor collects the debt from your creditors. When the full amount if collected, the factor gives you the remaining 10 to 50%., less a fee for the factor. Fees range from 1 – 5% of the amount financed and according to volume of receivables. To find a factor: look at the Commercial Finance Association site at www.cfa.com/Need_a_Business_Loan/need_a_loan.asp and/or type “Factoring companies” in your favorite search engine.