How Hard is it to Get a Business Loan?

Unfortunately, business loans can be difficult for startups to procure.

That’s because while some funding sources in the startup ecosystem — like VCs and angel investors — are looking to take big risks, traditional financial institutions like banks generally aren’t.

You’re going to need to show that you have perfect personal (and probably business) credit and they might even require that you’re profitable or on track to become profitable. Generally, banks prefer businesses that have a proven track record when they’re handing out loans.

But that doesn’t mean business loans are impossible for startup founders! It’s just something to keep in mind when you’re considering a bank loan as a funding source.