We can't get a good rate from the bank but don't know where else to go for cash

My co-founders and I went to the bank to get a loan. They wanted our accounts, which were not in great shape. We cleaned up the books and went back. The bank said they would loan us $12K, but they wanted personal guarantees. I didn’t know what that meant.

They wanted us to pledge our personal assets (cars, houses, etc) as collateral to cover the loan. One of the other founders did not have any assets the bank would accept, so they want his family to guarantee the loan. They also wanted to charge us 3% over the existing bank rate on a variable basis.

Our accountant told us this was insane and expensive, but we’re running out of cash and aren’t sure where else to get the money. I wonder if we'd be having the same difficulty if our accounts were in order when we first went in.