Bank financing for start-up?

The short answer is, "Yes, but ..." For a number of reasons, loans to a small business are among the riskiest for any bank to make, even if the business is an established one. Therefore, a loan to a start-up is risk on steriods.

Banks are the most important source of capital for small businesses. But when you ask a bank for a loan, you're asking a loan officer to risk some of their depositors' capital. As a start-up, it's unrealistic to expect to get a bank loan unless you can provide underlying financial strength that can collateralize such a transaction if the venture fails. Consequently, most start-ups have to look elsewhere for initial funding.

As you grow your business, build a relationship with at least one bank. Then, as you gain financial and marketplace critical mass, you will eventually be able to ask the loan officer for a business loan based on your business' credentials.