Collateral are those personal and business assets that can be sold to pay back the loan if necessary. Every loan program, even many microloan programs, requires at least some collateral to secure a loan. Borrowers that have no collateral to secure a loan will probably need a co-signer with collateral to pledge towards the loan. Without sufficient collateral it may be difficult to move forward in your loan process. Banks will look beyond financial information too.
Experience can be a key factor.
A client that seeks to open a business and has no experience in that business should not seek financing let alone start the business unless they intend to hire or partner with people who know the industry. Remember, if the bank makes the loan it wants you to succeed. That's why all these factors play a part in approving the applicant. I recommend reviewing this list and answering the questions before applying. You should know by your own responses if you will be a strong candidate for a business loan.