This is the traditional avenue for securing funds for your business. Banks tend to look for low risk businesses to invest in and offer reasonable interest rates. This type of loan is like a home loan in how it is structured and requires equity or assets to guarantee the loan.
The biggest downside is that you are required to pay back the loan if your business fails. In that respect it is different from venture capital or angel investing because you are assuming the risk of the loan.
Commercial Loan Expectations: