Well, we can require loans to grow our business but not to start. i have seen a number of people asking for loans before even having a running business. Requesting for a loan requires a deep knowledge of the business, the various cycles and fluctuations in a particular market.
A loan is a risk, yes a great one. It encourage an individual to work hard but also can lead an individual into a huge loss. not only of the business but also of the other properties linked with the loan.
Understand your business and know your market.