Bank loans are one of the most traditional ways to finance a business. Unfortunately, they’re also some of the hardest loans to get approved for due to their stricter requirements such as having an alternate source of income, stellar credit, or being able to provide significant collateral. Have a great business plan to support your case, be persistent, shop around for the lowest interest rate, and keep in mind that you can also try other avenues, such as CDFIs.

Talk to a few banks to learn about their requirements and expectations before you count on bank loans as a source of financing for your business.