Funding for Startups is a hard problem. The task of securing funding involves both time andeffort. A distraction from the task of creating. Why is raising capital so difficult? One word,risk. New companies without a financial track record are unknown quantities. Avoided by allexcept for the most adventurous of lenders.  First-time finance is to Startups what drink-driving is to newly licensed drivers, trouble.  For inexperienced Entrepreneurs, evensearching for funding is an alien skill. New Startup founders show about as much skill inhunting for finance as 21st century man suddenly thrust back into early Africa. Hungry forfood, they sometimes see prey, but have no idea how to trap and kill it, let alone know howto look for spoor. A Bank loan may look like an easy kill. But inexperience has it's downsidewhere knowledge means survival. A lack of the right kind of knowledge can mean a quickfinancial death.
Harsh financial environment
Founders also have to contend with harsh environments a partial product of localconditions. Geographic location, culture and business climate all play their part defining thequality and sophistication of funding. If you happen to be lucky enough to live in theAmazon Jungle equivalent of finance, Silicon Valley, finance is difficult, but the money isthere. If you live in Australia, the financial equivalent of a desert, finance is almostimpossible because money is scarce.  So the act of questioning all potential sources offinance strikes to the heart of the local funding problem. Asking the question, "What dopeople think about NAB's young entrepreneur program?" makes absolute sense.
Why are Banks lending now?
"... NAB's Microenterprise Loan for Start Ups - Learn more about a Melbourne Florist whose business is blossoming with the help of a NAB's Microenterprise Loan ..." 
The real reason I think Banks are targeting non conventional companies right now has lessto do with "social justice"  than traditional higher yield customers shedding debt.  Debtis now a four letter dirty word in business circles and Banks know it. Banks still have toinvest money and small business at the moment, with its lower finance requirements areprobably the only types of companies that might show promise of growth. With growth,profits may follow. What is a Startup? Startups come in many different shapes and sizes,are they all the same? What kind of Startup are we talking about?
What kind of Startup?
The idea to "start up" a traditional small business say a hair dresser, a book keeping firm ornewsagent is not the same as "Starting up" a new technology based company like Googledid or Scribd is in the process of doing.  The definition of a Startup for someone notworking in technology appears to be a woolly interchangeable label applied to anyentrepreneurial or small business activity. By contrast, technology Startups are made up of
Seldom logical | Banking on a Startup loan?http://seldomlogical.com/2 of 1108/03/09 18:15