This is a golden age for entrepreneurs. It’s not only much easier to get loans and lines of credit compared to five to 10 years ago, but small business owners have more options. Online lenders can turn around loan approvals in a matter of hours and even the largest commercial banks are showing an increased willingness to work with small businesses.
Lost in the hoopla is the fact that community banking is still the best and strongest option for entrepreneurs. When it comes to turning your big plans into reality, the convenience that online and commercial lenders offer does not compare to the personalized, hands-on service you’ll get from your community bank.
Competitive rates: Whatever your lending needs are — line of credit, commercial real estate, equipment leasing — community banks not only have the assets to back it, they often offer rates that are on par with or sometimes better than online or commercial lenders.
More options: Many community banks, including Minnwest, employ preferred lenders under the federally backed Small Business Administration Loan program. Meet with us, and we can help you decide if an SBA loan is right for you.
A personal approach to loans: Credit scoring and financial trends are both important parts of any business lending process. In the end, online and commercial bank sourced loans come with more ironclad, inflexible, one-size-fits-all payment plans and terms. Community bankers can be more flexible and willing to work with the unique needs of your business.
More flexibility: Working with an online or commercial lender means working with their ironclad terms and rules. Community lenders have more flexibility to customize loans and terms of repayment. That's because they understand the needs of your community, so they can help craft a lending package that works for your business.
Value-added services: Think of community lenders as economic specialists in your region, because that’s where their focus is at. Since the community lender lives and works in your community, they know your success will make the economy strong. For that reason, community lenders are generous with their expertise, providing a value-added resource for entrepreneurs. Turn to your lender for consulting, financial advice, cash management strategies, succession planning and financial planning.
Better for business? Some research appears to point to that. Small businesses with strong relationships with their lenders landed better terms, enabling borrowers to “maintain higher levels of investment and employment,” during the last decade’s financial crises and Great Recession, according to a study published by the Bank for International Settlements. In other words, the community banking approach can be positive for businesses.
Community lending is best: As a borrower, you’ll find you’ll be working with your lender more often than you ever imagined, whether you’re adjusting financing during a period of rapid growth, or simply trying to get through a slower-than-expected sales season. If the stranger’s voice on the other end of the line is sticking fast to their employer’s playbook instead of helping you, any benefits you gained from turning to an online or commercial lender will be gone and forgotten.
Tell us what you want to achieve, and we will find the best way to help you get it done. Make an appointment with a Minnwest Bank commercial lender today.