Getting noticed on the Web - BedTimes

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Now is a good time
for small businesses
to make a switch
By J. Tol Broome Jr.
One of the myths arising from the economic downturn is
that banks have lost interest in lending to small businesses.
The fact is that many banks are actively looking for opportunities
to develop new client relationships.
The primary cause of the Great Recession was that the huge housing
bubble burst. In most areas of the country, developers overbuilt,
residential real estate values plummeted and foreclosures reached
record levels. As a result, banks are stuck with the residue (i.e., slowmoving
housing inventory). As they work to reduce real estate exposure,
banks are looking for other profitable sectors and a key focus
for many is the small business arena.
A recent article in the online business journal The Street
(www.thestreet.com) described the availability of small business
loans as “ample” and said, “banks are expanding small business operations
to drum up new business.”
Despite evidence to the contrary, many business owners remain
skeptical about the willingness of banks to lend. Some have been
declined for loans, while others may feel neglected by their current
banker.
If you count your business in either of these groups—or if you aren’t
sure your bank is equipped to grow with you—now is the time to consider
finding a new bank for your business.
Here are tips for seeking a new bank:
1
Ask for input The first step is to see what options are available.
Even the smallest towns typically offer several banking options.
Start with a Web search of banks in the area to determine what
each offers. Talk with your attorney and accountant to see which banks
they would recommend as a good fit for your business. Another great
source of information is other business owners, who can share experiences
they have had with various banks.
As you talk with other professionals and business owners, ask if they
would be willing to introduce you to bankers. Lawyers and accountants
typically deal with several banks and other business owners often have a
close relationship with their own bankers. A warm referral is better than
a cold call when meeting a banker for the first time.
BedTimes | April 2011 | 31