This is a business loan and your aim will be to have it secured by the assets and credit of the business rather than your personal assets and credit. But this is not always possible. You might think that you can retain more control over your business by borrowing funds rather than selling stock. But many lenders have a lot to say about how you run your business. Equity financing does not have to be repaid.
Debt financing does.
But equity investors don't give you their money without expecting to make a profit. And the riskier the investment, the more they expect in return. You need a business plan. A proposal detailing what the financing would be used for Financial data, showing current income statements and balance sheets together with income and cash flow projections showing how you expect the business to fare if it gets the financing. If you're planning to do a business plan, check out our business plan outline before you get started.