Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home1/haradeep/articleside.com/configdb.php on line 8

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home1/haradeep/articleside.com/article.php on line 88
The Future of Small Business Lending in America

Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

The Future of Small Business Lending in America

By Findul Subscribe to RSS | July 12th 2012 | Views:
loading
 
  



One of the biggest concerns for small business owners is securing capital to grow and enhance their business. Ever since the 2008 recession, banks of have been reluctant to len money, even to small business owners with proven track records. Today the picture might look similar. That is, if you’re looking to be approved for a loan from a big bank. At banks with more than $10 billion in assets, 10.2 of loan applications from small businesses were approved in May, down from 10.6 percent in April, according to Biz2Credit.

But that doesn’t tell the whole picture. Small banks — typically local banks that are apart of the same community your small business operates in — have a much higher approval rate for small businesses. They may know the owner better, have a better feel for the clientele and how successful the business can be in paying off its loan. Nearly 50 percent of small business loan applications were approved last October, according to a similar report.

So what’s the future for small business lending?

Rohit Arora, chief executive officer of Biz2Credit, said pressure from regulatory changes in Washington are likely to force large banks to boost small business lending over the next two years or so, but that’s not a guarantee. How can your small business improve its odds of winning a loan application?

One of the best things you can do is develop a solid business and pitch your idea to your community bank. Banks that operate in the same community have a feeling for the type of customers you’ll attract. They’ll understand how popular your business can be — making that decision of whether or not to give the stamp of approval much easier.

But we live in an ever-changing world today. That means you also need to get creative.

New York-based small business owner Peter Kocher, owns and operates a bike retail and repair shop in Brooklyn. When he wanted a $350,000 to open a second store, he was denied by JPMorgan Chase and only offered $175,000 plus a $50,000 line of credit from another bank, under the condition that he would close out an existing line of credit with another bank.

“It wasn’t an option,” Kocher told Crain’s New York.

He ultimately received his funding from a community-development lender which is surprisingly financed by large banks. The NDC Grow America Fund awarded $345,000 and he could keep his existing lines of credit. These types of options are becoming more of a reality as big banks continue to diminish their small business lending space. At the same time, smaller local banks are doing the complete opposite.

One small bank that serves the Pacific Northwest actually saw their small business loan applications double this year. According to that bank, customers haven’t had a close relationship with their previous banker. “We recognized a need in the marketplace to have a relationship — a partnership — with small businesses not based on a credit score but on a real understanding of their business and financials,” the bank’s spokesperson told the Huffington Post.

Findul - About Author:
By developing a relationship with a small bank in your area, you can increase your odds significantly at earning financing that will help grow your small business. The future for small business lending is actually bright according to sources such as Biz2Credit.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/business-articles/the-future-of-small-business-lending-in-america.htm

Related Business Articles Subscribe to RSS

Tips to sell an existing business
Published by Alice Mathew on July 27th 2012 | Business
The following content gives you an idea about the exit strategy that one should follow while selling...
 
Voice broadcasting services enhance your business prospects
Published by Snooozy on February 7th 2012 | Business

Voice Broadcasting defines a telephonic message which can be sent to hundred or thousands of peo...
 
Ups and Downs within CAD industry – Has it affected business?
Published by Macjohn on August 21st 2012 | Business
Auto CAD became so popular that all engineering services was christened under “CAD Services”. Ho...
 
The progress Indian business news has made
Published by Nidhigupta on June 5th 2012 | Business
Since the post-independence period, India's business and trade economy has grown and has flourished ...
 
An HSE Risk Assessment is crucial for any business
Published by Mary Porter on June 16th 2012 | Business
If you are a company with some staff to look after it is essential that you get an HSE risk assessme...
 
The right way to expand your business
Published by Meghnath Kumar on July 2nd 2012 | Business
The beanstalk call answering services have employed the qualified, skilled and highly professional v...
 
Management by Objectives for the growth of business
Published by Annphilip on February 27th 2012 | Business
It was Peter Drucker who introduced and popularized the concept of MBO. The concept gains more popul...
 
Getting online classifieds work for your business
Published by Ashish Pandey on March 22nd 2012 | Business
To use online classifieds to increase the marketing prospects of the business and to gain profits th...
 
IT support London can save your business
Published by Julia Bennet on April 7th 2012 | Business
When you run a business of any kind you need to make sure that all the important files, documents an...
 
Mystery shopping can help business grow
Published by John Legraund Is An SEO Expert And Content Writer Who Has Written Articles On Mystery Shopping, Hunter Fan And Search Engine Optimisation on May 9th 2012 | Business
One of the most effective ways to turn lookers into paying customers is to know what issues, positiv...
 
Unsecured business loans as fast and active funding option
Published by Macrobusinesscapital@gmail.com on December 30th 2011 | Business
Being a small business owner the need of financing is always there to get your operations running or...
 
Business Lawyer and your business
Published by Adli Law on April 5th 2012 | Business
Running business requires you to get assisted by the expert business lawyer. You will be obtaining b...
 
How Commercial Lenders Can help Your small business
Published by Jonathan Latimer on February 16th 2012 | Business
Commercial lenders that permit you to apply loans online would make it more handy for you to create ...
 
A decent online classified ad makes your business grow in no time.
Published by Harry on February 24th 2012 | Business
Being able to online advertise your website, business or sale purchase of anything, and if you have ...
 
The reason why a business needs an online mortgage loan processor
Published by Amitaabh Saboo on December 1st 2011 | Business
The housing market is one that has a lot of competition, and therefore, a small or medium sized comp...
 
Why have business valuation
Published by Grey Knuts on August 14th 2012 | Business
There are relatively easy steps that can enhance the value and salability of many, if not most busin...
 
How can your business be benefitted with pick and pack services
Published by Diego Hall on March 13th 2012 | Business
This article focuses on the different functions performed by a pick and pack company. Before hiring ...
 
Limited company advantages: the greatest defense for a business owner
Published by Crowin Smith on February 13th 2012 | Business
The business laws that govern the world of business have to be understood properly before taking fur...
 
Business Law gives smooth flow to every business
Published by Wills Loren on March 7th 2012 | Business
feedbackhere.com: We provide Law services most event planners have something directly to them, in ma...
 
Considerations when choosing telephone systems for a business
Published by Jesse Wallace on May 17th 2012 | Business
How to choose a suitable office phone system.
...