Will banks loan startups money?

We are a start-up moving into our next stage of development and we are having some hurdles in attaining capital.

My question is, is it possible to take out two business loans to equate to the the amount needed to fulfill our startup cost? The total amount needed to get our start up going is $996,000.

Is it possible to take out two separate loans in the amount of $500,000 from two different banks? And will banks be willing to take on that risk solely based on the profitability of the business and my financial/credit history?

Some additional info … our collateral is very little ($25,000 to be exact), I have personal credit score of 700, and a salary that’s tops out at $72,000.

I know it’s a question that might be difficult to answer in its entirety but every little bit of advice helps.


  • A typical bank won’t lend you 500k if you don’t have any assets as collateral.

    You’ll have a much easier time raising 1M from angels. Maybe as a convertible note.

  • No, a bank will not give you money for your seed.

    However, when you get to your F round and you still have no idea how to be profitable, they’ll invest tens of millions of into your company, no problem.

    So, you know, just bootstrap until then and all your problems are solved.

  • Banks won’t lend you a penny without you showing them you have a nickel first. They are not in the business of taking any risk whatsoever, so your chances of getting anything above the $25k in assets you currently have is next to nil.

    As another commenter suggested, work through angels. It’s quite possible that you’ll need to pitch 100 or more, but if you have a solid team, any semblance of traction and passion, you can make it happen.

  • Why do you need $1 million to start? A bank won’t lend you unless you pretty much don’t need it. You’d have to have a track record of bringing in revenue at least at $100k before they would entertain your request for growth.

    Start smaller with what you have. Build your credit with what you have.

    I’m so perplexed as to why you need a million to start. Is your asset a patent or real estate? If not, go smaller until you can prove revenue.

    Don’t quit your job because no one will believe in you.

  • Yes, a bank will give you money but only if you give them a mortgage on your house 🙂

    I actually knew a guy who was a bank manager. He used to go into the local university and his ‘service to humanity’ was listening to the students pitch for funds. He said he’d heard about 500 of them but only ever funded one. When pressed, that was a loan against a house, not a loan on the startup so it was really still zero that he’d funded.

  • Take a look at SBA loans. If you have the assets to back the loan, know what you are doing, and can show healthy financials, your chances are high.

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