You can kill rabid wolves/bears in Qeynos Hills and give their pelts to some one at the cleric guild in Qeynos, the spell you receive for this sells for a few plat. Once you figure out where the rabid animals are, you can get a decent amount of money in a pretty short time.
You can then upgrade from a tarnished sword to a merchant bought one, Like "cladmore". You will also see armor and weapons on merchants that players have sold, like bronze, which can be bought back for like 10-20pp each, and stuff like that. This is one way to start getting out of the cloth/tarnished wep situation.
Bandits in West Karana have a similar quest where you turn the sashes you loot off of them to a guy in Qeynos, its doable around your level.
Can look these up on the wiki for exact details.
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