Getting noticed on the Web - BedTimes
Getting noticed on the Web - BedTimes
Getting noticed on the Web - BedTimes
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www.bedtimesmagazine.com<br />
Now is a good time<br />
for small businesses<br />
to make a switch<br />
By J. Tol Broome Jr.<br />
One of <strong>the</strong> myths arising from <strong>the</strong> ec<strong>on</strong>omic downturn is<br />
that banks have lost interest in lending to small businesses.<br />
The fact is that many banks are actively looking for opportunities<br />
to develop new client relati<strong>on</strong>ships.<br />
The primary cause of <strong>the</strong> Great Recessi<strong>on</strong> was that <strong>the</strong> huge housing<br />
bubble burst. In most areas of <strong>the</strong> country, developers overbuilt,<br />
residential real estate values plummeted and foreclosures reached<br />
record levels. As a result, banks are stuck with <strong>the</strong> residue (i.e., slowmoving<br />
housing inventory). As <strong>the</strong>y work to reduce real estate exposure,<br />
banks are looking for o<strong>the</strong>r profitable sectors and a key focus<br />
for many is <strong>the</strong> small business arena.<br />
A recent article in <strong>the</strong> <strong>on</strong>line business journal The Street<br />
(www.<strong>the</strong>street.com) described <strong>the</strong> availability of small business<br />
loans as “ample” and said, “banks are expanding small business operati<strong>on</strong>s<br />
to drum up new business.”<br />
Despite evidence to <strong>the</strong> c<strong>on</strong>trary, many business owners remain<br />
skeptical about <strong>the</strong> willingness of banks to lend. Some have been<br />
declined for loans, while o<strong>the</strong>rs may feel neglected by <strong>the</strong>ir current<br />
banker.<br />
If you count your business in ei<strong>the</strong>r of <strong>the</strong>se groups—or if you aren’t<br />
sure your bank is equipped to grow with you—now is <strong>the</strong> time to c<strong>on</strong>sider<br />
finding a new bank for your business.<br />
Here are tips for seeking a new bank:<br />
1<br />
Ask for input The first step is to see what opti<strong>on</strong>s are available.<br />
Even <strong>the</strong> smallest towns typically offer several banking opti<strong>on</strong>s.<br />
Start with a <strong>Web</strong> search of banks in <strong>the</strong> area to determine what<br />
each offers. Talk with your attorney and accountant to see which banks<br />
<strong>the</strong>y would recommend as a good fit for your business. Ano<strong>the</strong>r great<br />
source of informati<strong>on</strong> is o<strong>the</strong>r business owners, who can share experiences<br />
<strong>the</strong>y have had with various banks.<br />
As you talk with o<strong>the</strong>r professi<strong>on</strong>als and business owners, ask if <strong>the</strong>y<br />
would be willing to introduce you to bankers. Lawyers and accountants<br />
typically deal with several banks and o<strong>the</strong>r business owners often have a<br />
close relati<strong>on</strong>ship with <strong>the</strong>ir own bankers. A warm referral is better than<br />
a cold call when meeting a banker for <strong>the</strong> first time.<br />
<strong>BedTimes</strong> | April 2011 | 31