Small and mid-sized banks are often where entrepreneurs turn when they fail to obtain business financing from larger institutions. Because their lending standards are often not as strict and their options are more flexible for business owners, these banks can prove to be an effective route for a company seeking to expand or obtain startup funding.
Smaller banks can be especially helpful for entrepreneurs unsure of where to turn for funding, such as those who have only recently arrived in the U.S. Immigrants often come to the states to follow their dreams and start their own businesses; however, they may find it difficult to get the lending they need to make such goals a reality. Some may even be wary of accepting loans from larger, traditional banks or assume they will be unable to obtain one in the first place, while others could be deterred by assuming no lender will understand their culture or language. This can lead to some business owners failing to expand or even get their company up and running due to a lack of capital.
Bloomberg Businessweek recently reported at least of five of the top 25 SBA national lenders are institutions are strongly linked to immigrant communities, providing business owners with attentive service and sometimes the opportunity to speak with an employee well-versed in an entrepreneur's native language. This gives newcomers to the U.S. significant potential to obtain loans from institutions that understand their culture, work ethic and potential to succeed in a community.
Besides being more willing to lend to newly arrived immigrants with hopes of starting a company and providing them with the understanding they seek, smaller financial institutions also offer those seeking loans the opportunity to have more flexible banking options, which can be necessary for those just getting a business off the ground and trying different strategies to ensure their company is a success.
However, small and mid-sized banking institutions can effectively serve business owners and entrepreneurs who are not a part of the immigrant community. With diverse client bases and multiple options for those seeking to open a company, these firms can provide most entrepreneurs with the assistance they need, in regard to loans, small business banking or even international banking.
Content presented by Bridge Bank, offering flexible, customized solutions for entrepreneurs.