I recently had a conversation with a young man who had an idea for a business.
He was very angry because his area bank would not give him a loan to start.
Now there are many reasons why this young man is not receiving a loan. There are many aspects of your lifestyle that you have chosen to make public through social networks that could make any lender stop.
(Hint: social networks run like "Stoner Boy" and "Bong Girl" really do not help your cause with banks … yes, they will look at your Facebook and Twitter)
But apart from the lifestyle choices, this young man has a misconception about what he really needs. He is in a position where he feels that someone other than him needs to provide his initial money.
You do not need a commercial loan, you need venture capital … a big difference between the two.
Commercial loans are granted when you have an asset to leverage as collateral. The banks expect to receive a refund with interest. It is what they are doing business.
Venture Capital comes from investors in your company who believe in you and your business plan (Yes, you really need one of those). Some of these investors may want an active role in their business, others do not. These investors are betting on you, your idea and your work ethic. They understand that their money is at risk and will disappear if the company fails.
The Small Business Administration has some programs with approved lenders to grant loans to small businesses, but they still require you to have "skin in the game".
Many people get angry at banks for many reasons, but not getting one at home should not be one of them.
Video credits to Jason Jones YouTube channel