If you are a new business owner or already an established one, you have to know that there will come a time when you will need additional financing.
Unfortunately, this doesn’t only happen once throughout the run of your business. If there is an urgent need for supplies, to purchase important equipment, or to pay off an outstanding balance and you don’t have enough funds, the best solution is to apply for a business loan.
With dozens of large banks, credit unions, and online financing companies offering a variety of funding solutions, it can be hard to find the right institution to get a loan from.
However, bigger is not always better, especially if you are only looking for a small business loan. If you compare the pros and cons of big banks versus local ones, you will find that local commercial banks will actually be more beneficial for your financing needs.
Below are four noteworthy advantages of securing a business loan from a local bank:
1. The decision makers are local
One of the top benefits of applying for a business loan from a local bank is that the key decision makers are local. This means that they understand the needs of the local market better.
Local banks will base their decision to approve a business loan on more than just your credit score; they will also rely on their local knowledge. They will look into your company’s history within the community, the current standing of your business, and other important factors.
In addition, since the decision makers are local, you can talk to them if you feel that you need to explain your requirements better or to have access to other banking products.
2. Faster turnaround time
Since the people making the decision for loan approvals are not based in some far-off city or country, you can expect to receive feedback about your application in a shorter period of time.
For a business owner, time is money.
If you do not get a decision about your application quickly, you will not be able to buy the supplies or equipment you need to start making sales and profits. You won’t be able to apply for a loan in a different lending institution immediately as well.
When you apply for a loan at a local bank, you don’t have to wait for a long time to know the decision. They will give you the advantage of being able to take the necessary actions more quickly so that you can resume normal operations and start earning money again.
3. Local banks offer more personalized services
International banks have a strict approach to lending that many promising businesses that don’t fit the prescribed mold will have no chance of getting their loan approved.
Local banks, on the other hand, have less stringent requirements. They do not set specific criteria for the types of collateral they will accept and the applicant’s financial ratios.
In addition, local banks take a more personal approach with their customers.
Whenever you visit the office or get in touch with them by phone or email, you will be treated as a person and not just as an account number.
Lastly, local banks are also more flexible with the loan amount they grant and payment terms as well. They will really take the time to truly understand your business and offer you the services you need.
4. You will have a dedicated loan officer
Finally, local banks want to get to know you so that they can learn and understand the goals of your business. As such, once you apply for a loan from a local bank, you will be assigned a loan officer who will invest his or her time and energy to get to know you and your business.
Your loan officer will work closely with you as your partner throughout the whole application process. After you have acquired your loan, they will continue working with you and give you additional advice or assistance whenever you need it.
A local bank will always work harder to serve and satisfy your financing needs.
So when you need a loan, credit card, or want to know more about and apply for other funding solutions, visit the nearest local commercial bank first. Their lending officer will assist you every step of the way to help make your business a success.