A new business hasn't proven itself viable therefore it's a huge risk to a bank.

Between personally guaranteeing a loan and not having the funding available at all, I'd take the former.

Once the business has been trading for a while and shows it has a working model, it shouldn't have any problem financing without a personal guarantee.

Either way, limited liability remains crucial. You're still in control of how much personal risk you're accepting, putting a backstop on any loss.

But that's the norm almost everywhere. Try going into a regular US bank and ask for a loan for an LLC. Almost everywhere will expect collateral and/or a business plan and/or personal guarantees if the business is new. Some countries have more risk-averse banks than others, but it's a matter of degree not a fundamental difference, and generally reflected in interest. And it then just changes the calculus of when you look for investors rather than lenders.