How often have you heard someone say that small is the next big thing? If you said plenty of times, you could use this same advice to obtain a business loan from smaller banks. visit their website here and learn to manage your debts with tips and tools at www.debt.org. You will agree that these banks offer several advantages when compared to their bigger counterparts.
What is all the buzz surrounding smaller banks and why are they preferred to obtain a loan? Here are few reasons for choosing a smaller bank over a larger one.
Transparency- If you have turned away from the community bank only because it was not popular, you might have to reconsider your decision. A small bank does not qualify as being scrupulous. You get a good opportunity to meet the money lenders in the bank. Discuss with them your business ideas or the reason for obtaining a loan.
Most of these lesser known banks concentrate on customer relationships and go the extra mile to serve you. When you talk to the concerned authorities personally, there is transparency in everything you intend to do and the lenders will have no issues regarding repayment.
People notice you- Any large bank that has established itself will have plenty of customers which makes it difficult for the officials to remember the face and the name. When you partner with a credit union, you can be assured that you will not be forgotten in the sea of customers. Added to this, if you have a good financial history, your face will be remembered and associated with the credit score.
Quick responses- Whether it is by their innate nature or it is part of a good customer relationship management, a local bank will process your queries without any delays. You can call the concerned authority or drop in if you have any doubts.
All the loan approvals and major decisions are taken by the people who live in the community. You would have had a chance meeting with them in the past, or they would be familiar with your family circle. Owing to their personal knowledge, local banks and small financial institutions approve loans that bigger banks disapprove of. If you are dealing with a credit union, the decision to approve your loan will rest on the customers, who are actually the member-owners.
Low-interest rates- It doesn’t stop at this. Local banks offer a longer repayment period and competitive loan terms.
You can ‘bank’ on your ideas- When you discuss your business ideas with the officials, they will not interfere or preach pearls of wisdom to you. They do not expect any major chunk of your business profits and are clear of only one thing- you have to repay the loan amount with interest in the given time period.
The sense of commitment- The future of any local bank or credit union largely depends on the interests of the local community. There is an unseen relation which tells that the bank relies on the growth of the local people. This is not the truth in case of a well-established bank who use a community’s deposits to make fortunes across the globe.
Same services at lower cost- Most of the community banks offer the same services like online bill payment at a much lower cost when compared to big banks. Processing fees for the same service are smaller in a credit union bank than in a bigger financial institution.
Promotes local businesses- several trades and jobs rely on these banks for financing. It was seen that small banks accounted for a large section of the graph in terms of money lending.