That's always the tough part raising money if no one is willing to invest, they would be forced to take on bad deals that usually ends up toxic.
If you go to a bank, they likely need something to secure their investment to make sure they don't risk their money. Whether it's convertible notes that they can always convert below market and sell for profit or something of value to hold against the loan.
In the case of convertible notes, it's the worst thing that could happen to any stock common shares because the notes holder would have no regard for current share price since their terms allow them to always get shares below market. That usually crash the stock hard in short order.
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