You’ve heard lately that community banks are the preferred lenders for small businesses. But what advantages do these smaller institutions have over national banks? Here are a few reasons why a community bank may be the best choice for your small business financing:
1. Customer Service
With such a large volume of customers to serve, many national banks are unable to provide individualized service. You may lose potential sales or construction work might be delayed if you ever encounter problems with your loan and a larger bank is unable to respond to your requests quickly and efficiently.
Unlike national banks, a community bank has the ability to partner with you in your small business venture and they even have a personal interest in your business success. Community banks know that the local economy (and therefore local banks) benefit from the success of area businesses. An individual small business will have very little impact on large-scale national bank.
2. Flexible Criteria
Many national banks have strict criteria intended to approve and reject loan applications as quickly as possible. Community banks, on the other hand, have the ability to look at your financial track record and make discretionary decisions. While national banks may face restrictions that only allow them to only offer traditional loans to traditional business ventures, community banks can offer creative financing (such as CAPLine loans) for innovative business ideas.
3. Small Business Knowledge
One of the biggest advantages community banks have over national banks is that they understand the importance of your small business. After all, community banks are small businesses themselves. Community banks know firsthand how to run a successful small business and can take the time to walk you through every step of starting, funding and maintaining your business.
Obtaining funding for your small business can be a complicated process. By working with a community bank you can simplify the lending process while receiving the customer service, funding options, and expert advice you deserve.
Photo courtesy of mybanktracker.com
{ 1 trackback }