Taking a loan from a bank for the purpose of development of your small business is not as easy as you may think. There are many factors that a bank is going to take into consideration before they agree to giving you a loan in the first place.
One of these factors is experience. If you are a person that has no experience at all in the business world and you are interested in starting a business from scratch, then a lender may not really be interested in giving you a loan at all.
There is no guarantee that your business is going to run. And then what is the lender going to achieve out of the whole loan agreement. They will take over the business and try to sell your inventory for a very reasonable price as an auction. However, there is the high possibility that even after so much hard work; the lender is going to be losing money in the process.
The person applying for the business loan should at least have three years experience in the field and should be able to show that he is capable of handling his financial situation very professionally and systematically.