There is so much you can do for free or with other people's money why take out a loan to start? Loans are best used for scaling. So many people think loans should be to help them out of a bad spot or to start their dream, but truth is as has been said, get a working business first. Once it shows promise, scale with a loan if you can or want to. Where do you live? 7k can be saved up by hustling in a few months Im sure. If you are dedicated to your business, than the dedication/work needed to save 7k should be no problem. If you cant save it, then its not for you imo. First priority should be the business plan, and then doing everything you can for free/low cost. Lets say youre dropshipping. You can build a shopify store easy and free, create funnels/landing pages, a start a blog, guest posts, link building, find your product, etc all for free. Why take the loan out before all that is done? During that time save a few hundred and test ads. Theres so much you can do to find success or find your step with virtually nothing in that niche. Same with any other business really, especially if its online. Lastly if you DO opt fort a loan id use the method I posted (but got taken down), open up an LLC, work towards a high credit score, and take out a 0%APR business credit card, much cheaper than a loan usually. Works for US residents/citizens. www.fundandgrow.com does this Next look into other products like factoring. If you are B2B factoring is a great way to get cash coming in quickly from your sales.