Access to capital is important to a small business. Many small businesses are undercapitalized and need additional cash to expand operation, upgrade equipment or engage in research and development. More often than not the entrepreneurs funds are tied up in assets that are not particularly liquid. Ready cash is usually is short supply.
Banks are a reliable source of funding for small businesses.
Generally, loan officers require the most information from a first-time borrower. Banks may offer an unsecured loan, although that is less likely. Unsecured loans are made based upon assets, credit history and ability to repay. However, these loans do not require you to personally secure the loan with personal or business collateral. The more common secured loan requires that you guarantee your willingness and ability to repay the debt with an asset such as real estate, stocks or securities.