If you have a good business model then what the problem of opening the company, going to the bank getting loan with small % APR and running it instead of simping for VCs money?
Discussion
Most likely itās a risk issue. Banks donāt want risk, VCās consider themselves visionaries and are willing to take the risk, but they tilt the table and take the reward too.
Credit score is a bigger hurdle than the business plan.
Well, if you canāt keep your credit score then better donāt do a business š
Eh, itās more nuanced than this. Even if youāre financially stable you can still have your score get fucked. And if you have an 800 score, you still canāt easily pull a loan the size needed to start a business, idk of banks doing personal loans of $100k+ to plebs. Some small businesses can be bootstrapped with a $20k loan, but new bitcoin businesses donāt seem to be that lightweight in capital requirements from what I can tell. If you donāt have a credit score above 700, you probably wonāt even be able to get that $20k loan, or you will but at a rate where itās not financially viable. Going to different levels of govts for small business loans, grants, projects, or similar incentives might be better, but opportunities are limited. Being a solo founder is extra difficult, that is its own funding problem.
Simping makes sense, sometimes.
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Not true, credit scores are rather arbitrary. It's not based on merit
Banks require either collateral or a stable/predictable cash flow history. The risk VCs take cannot be compensated by a small % APR. Equity risk demands equity returns.
Banks donāt like taking risks on small businesses, especially volatile tech startups. Thatās one of the reasons VC became such a big industry.