Small Businesses and Bank Lending
In the old days you could practically pull up to a bank and get financing, like a fast food restaurant. Now you can't and the banks aren't serving you inside either.
According to the Wall Street Journal, loan approval rates at large banks dropped to 9.2% from 9.35% in August as large banks continue to struggle with growing uncertainty in global capital markets.
However, small banks approved 45.1% of loan applications by small firms in September, up from 43.8% in August. Also credit unions and microlenders increased their loans 3.5% in August.
As small businesses continue to struggle with flat sales and small growth rates, business owners are feeling that they can't meet underwriting requirements and as borrowers don't even apply based on pre-conceived notions. The new avenues to fill this need are private finance companies and should be marketed to the small business owner.
Bad news is big banks aren't lending and community bank loans are not optimal, good news is small finance companies and private lenders are. A private investment bank can help renew your small business and set you on a positive business direction for 2012.