Track Record – Banks tend to lend to businesses that have a track record of success and profitability. This is because they want to minimize the risk of default. Small businesses, on the other hand, often lack this kind of history.

Stringent Criteria – Banks generally have strict credit requirements for borrowers. This can be a problem for small business owners who may have less-than-perfect credit scores.

Collateral – Banks typically require collateral before they will make a loan. This means that the borrower must pledge some asset, such as property or equipment, as security for the loan. Small businesses may not have sufficient collateral to meet this requirement.

Not Fast Enough – Finally, banks can be slow to process loan applications, which can be frustrating for small business owners who need access to capital quickly.