Picking The Right Loan From The Right Bank Is Crucial For Small Businesses
Written by Ken Gaebler
Getting a small business loan has never been more difficult than in the current challenging economic environment. Knowing how to evaluate small business loans can improve the odds of obtaining small business financing.
Robert Seiwert, senior vice president and director of the ABA Center for Commercial Lending & Business Banking, states in a white paper released Thursday that assessing the type of loan, rate and amount of collateral required are some of the key items to consider when deciding upon a small business loan.
There hasn't been much in the way of good financial news for small businesses, and Seiwert advises owners not to respond too anxiously to the sudden availability of credit. His final piece of advice is to deal with banks who have worked with your industry before.
"Another reason to deal with banks that have experience in your industry relates to the financial advice they can offer," Seiwert writes. "Because these banks work with firms facing the same industry-related problems as those that may challenge you, they're in a better position to provide helpful advice and financial products tailored to your needs."
Seiwert's report comes in response to President Barack Obama's plan to fund small business lending, but state governments have announce similar plans. Missouri treasurer Clint Zweifel announced Wednesday that the state will lend $36 million to small businesses in the Northeastern part of the state.
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