When unable to secure a bank loan, explore alternative funding sources such as personal savings, crowdfunding, or government grants. Peer-to-peer (P2P) lending platforms like LendingClub or Prosper can provide unsecured loans. Convertible debt or equity financing through angel investors or venture capital may also be viable. Additionally, consider restructuring debt, negotiating payment terms with creditors, or leveraging business assets as collateral.

Bank loans are challenging to obtain due to stringent credit requirements and risk assessments. Post-2008 financial regulations increased scrutiny, with bank loan approval rates dropping from 32% in 2007 to 18% in 2013 (Federal Reserve data). Alternative funding fills this gap: P2P lending volume grew by 45% from 2020-2023, and 60% of small businesses use personal savings to start or grow (U.S. Small Business Administration). Crowdfunding platforms like Kickstarter reported a 10% success rate for business projects, while SBA-guaranteed loans increased by 28% in 2022, aiding underserved borrowers. Personal savings remain a cornerstone, as 68% of entrepreneurs rely on personal funds initially (Kauffman Foundation). These alternatives address gaps left by traditional banks, offering flexibility and accessibility despite higher interest rates or equity stakes.