"Neither a borrower nor a lender be." This might have been sage counsel in Shakespeare's day, when Polonius tendered the advice to his son, Laertes, in Act 1 of Hamlet. It might remain sound financial guidance today as well, but it does not reflect the realities of living in the 21st century. For the vast majority of consumers and business owners, an infusion of outside capital is necessary to buy any big-ticket item–a home, a farm, livestock, equipment–or simply to deal with bills and wages in the face of an erratic cash flow.

This usually means securing a loan from a traditional lender such as a bank or mortgage broker, imposing on family or friends, or relying on credit cards. Working capital also can be raised by luring investors. Each approach has its pros and cons