After the economy tumbled, many entrepreneurs were unable to receive the loans they sought from big banks, which implemented strict start up financing policies. As the market begins to recover, however, many large financial institutions are still unable or unwilling to give many small companies the financing they desire.
According to the Biz2Credit Small Business Lending Index, only 14.8 percent of loan applications were approved by large banks in October of this year. Loans from small banking institutions, on the other hand, showed an increase. While small banks approved 47.6 percent of business loan applications in September, that number jumped to 50.1 percent in October.
Entrepreneurs seeking loans to expand their operations, launch their dream company or invest in new products or equipment may want to look to smaller banks to procure their financing, especially if they have been turned away by larger financial institutions. Not only can smaller operations be more willing to approve loan applications, they can also be more flexible and provide personalized solutions. This can put business owners at ease and ensure the financing options work for their companies.
Content presented by Bridge Bank, offering flexible, customized solutions for entrepreneurs.