Don't Bank On It
Borrowing from banks may seem simple, but be aware of what's involved.
Banks are probably the most visible source of ready financing, and you should already have contact with a few through your personal accounts. Although banks are logical places to go in order to raise capital, they are notoriously conservative, especially where start-up home-based ventures are concerned.
Most banks will require some sort of collateral as security for a loan. Banks will also want to know the purpose of the loan, so be prepared to show them your business plan. Your personal background will have a direct bearing on how your loan applications are treated.
Excerpted from Starting a Home-Based Business