Traditional lines of credit and loans typically require a business history and are difficult for startups to secure. However, if you are in need of a loan and your business doesn’t qualify, personally guaranteeing it or getting a cosigner might help. Regardless, start a relationship with your bank early on to help with the day to day activities of your business. The bank may be a source of capital for you in the future.
Advantages:
Disadvantages:
Bank loans are dependable, predictable, and never ask you give up ownership or control in the business. They usually offer good interest rates.
Bank loans are difficult for startups to get and involve a detailed application process. If you have to personally guarantee the loan, you open yourself to significant personal risk.
TIP:Ask your banker about SBA or other government loans
