Often, money is loaned interest free or at a low interest rate, which can be beneficial when getting started. Be sure to visit ACE-NET , SBA's Angel Capital Electronic Network. ACE-Net gives new options to both small companies looking for investors and investors looking for promising opportunities. It is often said that small business people have a difficult time borrowing money. This is not necessarily true.
Banks make money by lending money.
However, the inexperience of many small business owners in financial matters often prompts banks to deny loan requests. Requesting a loan when you are not properly prepared sends a signal to your lender. To be successful in obtaining a loan, you must be prepared and organized. You must know exactly how much money you need, why you need it, and how you will pay it back. You must be able to convince your lender that you are a good credit risk.