The wrong time to take out a business loan
Businesses claim that banks only want to give out a business loan when the business doesn't need it. There is some truth in that statement.
But as a former commercial lender that has been involved in over $500M in deals, I can tell you that often times it is a matter of the business applying for a business loan when they aren't ready for it.
The wrong time to take out a business loan is before you have established any revenue. Since lenders are historical looking and require cash flow to prove the ability to prepay, applying for business loans before you have sales isn't the best idea.
Some people apply for a business loan because they think that having money to use for things like advertising will help them get some sales coming in.
Often times what is really happening is that the business has one of two problems - 1) either they have not identified an addressable market; 2) they have failed to figure out how to attract their target market.