Where are small business loans? I've been looking for answers to that question for quite some time. It seems like everywhere I turn people are asking me where are small business loans? They have found me articles discussing this topic, and they also seek advice from business consultants who claim to know the answers. What am I to believe?
The answer lies in understanding banks and the loans they offer. Small banks in particular have a lot more flexibility than large banks do. A large bank typically requires a long term commitment with a high interest rate, whereas a small bank will often look to see if you have collateral or assets to secure the loan before ever lending you money. This may not seem all that important to those who know nothing about the business world, but the truth is it can make all the difference between success and failure. You wouldn't want to apply for a loan from a bank that requires a high interest rate when you can find one from a small local bank that only requires a modest interest rate.
Local banks have long histories with small businesses. Often times, these banks were started by the owners of small businesses themselves and have remained by the local community. When you walk into one of your local banks, you often hear the stories of how the owner used the bank to get the financing they needed to start their business, or how the owner is still using the bank to fund their business. While most banks do not like to make such claims, you may find some do and this is where the problem arises.
Some banks will try to push a sale on you. They will claim there is little competition in the small business loans market and that you won't be able to find a decent loan from anyone else. While this may be true, you will probably find that they will try to get a very high interest rate for your loan. This interest rate may be as high as 25% or more.
You are asking where are small business loans? Because those loans are hard to come by. Banks don't really compete on price for those loans because they know they will get hardly any customers if they are all sold. It is a good time to buy because there is very little supply and the demand is very high.
Since you are looking for where are small business loans? You need to look at how many banks are actually making loans. There are only so many of them around and they are all competing for your business. If you want to get a loan, you need to ask if you are being offered a loan or a beat down on the price of the loan.
Some banks are willing to work with you and find a way to make it possible for you to get the money you need. It may be that they are willing to go above and beyond what is expected in order to get you to apply. In this case, you would have to pay a higher interest rate because you are . . . . . . considered a risk. The higher interest rate is to offset the risk and the lower rate is on the secured portion of your loan. This is just one of the advantages of where are small business loans?
Another advantage of where are small business loans? They are usually easier to obtain. You can easily go online and search for “small business loans.” There is always someone out there who has what you need. There are plenty of financial institutions out there ready and willing to help.