In The Rough Studies show fast-growing companies across the nation face a crippling capital shortfall. Here's what these firms can do to find the cash they need.

We can't believe this is happening," say CharlieNickell and Anthony Candell, two of the five co-founders ofScimitar Golf USA, which manufactures customized golf clubs. Thepartners are mystified by the quick growth of their company:Scimitar, which opened its doors for business last December, nowbooks at least $1.7 million per month in sales.

In just nine months, Scimitar's owners have cobbled togethera far-flung empire. First, there's the manufacturing facilityin Garden Grove, California, where 150 employees manufacture customgolf clubs to individual specifications with a proprietary processknown as tri-matching. Then there are the two California telesalesoperations (in Carlsbad and Irvine), which employ more than 50telemarketers. Scimitar also produces a catalog that features afull line of apparel and accessories, and is launching anindependent dealer network to sell clubs directly to golfers andgolf pros. Nickell, an avid golfer with significant industryexperience, says of the company's growth, "We don'tsee any end in sight."

Candell acknowledges the potential but expresses concern overthe prohibitive cost of growth. "Every month, we hire newpeople in sales, marketing and manufacturing; we purchaseincreasing amounts of raw materials; and we stock moreinventory," he says. That doesn't even include the sidedeals Scimitar has made to accommodate expansion, such as buyingout the leases of and relocating its neighbors in the industrialpark that houses the manufacturing facility. Although thecompany's cash flow is strong, with expansion at this pace,Candell and Nickell need a layer of capital so the company cancatch its breath.