The reason most new businesses fail is for lack of capital, not being able to get the money to continue in business.
More than three-in-four businesses run for up to five years before running out of money because sales can’t keep up with expenses. So it turns out that getting a loan might actually be able to keep you in business rather than leading you to ruin.
Business loans almost always offer the lower interest rate because the money is secured by business assets. Lenders can repossess or force you to sell business assets to meet loan payments.
That’s not the case with a personal loan which requires no collateral. You won’t be forced to sell your home or other assets and cannot be pushed into bankruptcy on a personal loan.
Start the business as much as possible on saved money, at least to the point of having a workable business plan and nearing sales.
Minimum requirements for a business loan are generally a year or more in business and current sales. Getting the best rates means higher sales in the $100,000+ area and sales from repeatable sources.