Banks across the U.S. have a long and well-established history of providing the growth capital needed to help small businesses achieve their goals. The local bank used to be the sole source of funding for many businesses, and although modern methods of communication now make it feasible for a business owner in Maine to obtain their capital funding from a loan broker in California, your local bank branch may still be one of the best options for your small business lending needs.
Our increasingly global economy seems to point towards continuously expanding our financial horizons, but there are benefits to staying local and accessing funding from the same bank where you have your business checking account. For starters, your banker has connections within your immediate area, and can introduce you to local business and community contacts who can help your business flourish. Most small businesses, unless they are solely an online entity, rely on flesh and blood customers and their support to survive and expand.
Another benefit of dealing with a bank to access growth capital is that your local bank has a vested interest in backing area businesses and helping them succeed. This is self-serving, because when the local economy is stable or on the upswing, the bank branch on the corner typically sees an influx of revenue from loan interest and other fees. But to you, the small business owner, this means that when you establish a relationship with a banker in your community, you'll discover a willingness to help with everything from guidance to faster loan approvals. When your banker gets to know you and understands your business, you've forged a link that can potentially see your small business through both good times and bad.
There are many reasons why you may need to access small business loans. You might be looking for growth capital to expand your operation; you may need new equipment; or you might decide to purchase new premises or improve your existing location. Perhaps you'll experience a cash shortage and need a short-term loan to purchase inventory or materials. Today's banks offer a number of small business lending products, and once you're a business customer, your local banker will work with you to determine what the best funding option is for your particular financial need. This is one more benefit of going to your bank for your small business funding; free advice from a financial expert.
Once you've established an ongoing affiliation with a bank, you'll find that having a local banker who's familiar with your small business can be invaluable in keeping your enterprise operating smoothly. If you have a conventional term loan, a business line of credit and your business credit cards through one bank, and that cash crunch hits, you're more likely to be approved for a short-term bridge loan from the financial professional sitting across the desk, who knows you and the long-term stability of your business, than a faceless, online entity or a voice over a phone line.
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