The Atlanta Fed reports:
In our previous survey conducted in April 2012, we found that firms applying for credit at large national banks had notably less success than firms that applied to small banks...
A difference between small businesses' success at large and small banks has also been documented by the online credit facilitator Biz2Credit. Biz2Credit works a bit like an online dating service—after answering a series of questions (and providing the typical financial documents required by lenders), small businesses are presented with five potential "matches." To determine the best five matches, Biz2Credit identifies what lenders are looking for—usually a certain credit score, a minimum number of years in business, an established banking relationship, and targeted industries.The resulting credit applications are the basis for the Biz2Credit Small Business Lending Index. Biz2Credit also reports approval rates from the matching process for large banks, small banks, credit unions, and alternative lenders. These approval rates are plotted on the chart below.Much like we saw in the Small Business Survey, Biz2Credit reports that small firms have had consistently less success in obtaining credit at large banks.
I buy it. My father is a loan office manager for a small local credit union and they are dying for people to come in and borrow...for any reason. They have millions on the books just sitting there waiting to be spent.
ReplyDeleteCredit crunch is no longer an issue.
A last factor whenever picking securing credit is actually whether the pursuits will be far better dished up simply by promoting value inside your firm, as an alternative to create many loans.
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