Still, the interest rates are usually lower than those charged by credit cards, the last-ditch funding source for many start-ups. Two such sites have proven to be market leaders. The first is the US-based www.prosper.com and the other is its British counterpart, www.zopa.com. Both might be described as the eBay of money.

Here is how it works: borrowers sign up for a free membership in, say, Prosper, who perform a basic credit check and assign each member a credit rating. Next, borrowers post loan requests, listing the desired loan amount up to $25,000. They also state the maximum interest rate they are willing to pay, how they intend to use the loan and the duration of the auction (between three and seven days), along with a credit score and debt-income ratio provided by Prosper. Borrowers then sit back and wait for lenders to offer loans at interest rates either at or below the preset cap. If a loan is fully funded, Prosper combine the bids with the lowest rates into a single loan and deposit the cash in the borrower's bank account within a few days. Prosper handle all the back-office work, including payment collections. In return, borrowers pay 1% of the loan amount upfront and lenders pay an annual fee of 0.5%. If a loan isn't fully funded within the auction time frame, the borrower is free to try again.

When you visit the websites, you will also notice that all sorts of groups have sprung up in their wake.

Clearly, this is an ideal way to raise money if you don't have the traditional, low-cost options open to you. Also, I have to say, if you are looking for a business opportunity (or an investment opportunity), this could also be it. After all, there has to be room in the market for another similar player.