Starting a business is an exciting adventure that almost always requires adequate financing. For many entrepreneurs, a bank loan is one of the most important tools for getting started.
However, having a good idea alone is not enough to convince a bank; you also need to accurately calculate the costs of your project and compile a robust financing package. So, how can you obtain a loan to start your business? What are the alternatives if your application is rejected?
Key points
- It is important to compare banking offers to obtain the best loan terms when starting a business.
- To increase your chances of obtaining a business loan, you need to prepare a solid business plan and have sufficient personal funds.
- With Piowo, you can obtain financing to improve your business cash flow, invest or manage financial uncertainties.
Why take out a bank loan to start a business?
When setting up a business, there are often significant financial needs in the first few months. Even before generating any revenue, specific expenses such as renting premises, purchasing equipment, communication and building up initial stock must be covered.
While these investments are essential for getting off to a good start, they require start-up capital that partners’ own funds may not always cover.
In this context, a business bank loan is one way to finance the launch of a business. It allows you to:
- supplement your personal contribution;
- reach a sufficient level of capital to get started;
- Invest in the resources necessary for the business to run smoothly.
Provided you have a credible and coherent business plan, a bank loan is an effective financing solution for starting a business.
How can you take out a bank loan to start your own business?
Follow these four steps.
To obtain a business start-up loan, you must:
- Calculate your needs.
- Prepare your financing application.
- Compare bank offers;
- Apply for your loan.
Compare offers and negotiate loan terms
Each bank has its own selection and pricing criteria. Don’t limit yourself to your personal bank: compare several institutions.
This competition allows you to:
- obtain better terms (interest rate, repayment period, collateral required, application fees, loan insurance, etc.);
- avoid dependence on a single positive or negative response;
- speed up the negotiation process.
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Last modified: July 14, 2025
