Does Your Financial Institution Work For You?

The benefits small businesses gain from community financial institutions

10/24/2014 10:45:00 AM
From employees to associates to members of the local community, many people depend upon small business owners to provide services and job opportunities. This is a large responsibility that requires a lot of work, and small business owners need to be able to rely on their employees and the other businesses that they work with in order to make the burden easier, including their financial institution. Working with the right financial institution is one of the most important relationship choices that a business owner can make.
“Whether you’re just starting out or ready to take the next step in your business, the relationship you establish with your [financial institution] can set the tone for financial success,” states Michelle Krueger, from the newspaper Times of Northwest Indiana.
Many small business owners have found that community-based small financial institutions are the best match for providing exactly the services they need to stay in business and alleviate stress. If you take the time to find a financial institution that truly works for your business, you will thank yourself many times over in the years to come.
Small business owners should be careful to not fall into the common trap of simply choosing a financial institution with big brand name recognition. In many instances, the chain of command at these large banks goes up so high that it is not possible to truly form a close or lasting relationship with the people who actually make the decisions that affect your business.
This is why it’s important to choose a financial institution that is truly prepared to serve the community and your small business for the long haul.
“While the basic menu of available products is fairly comparable from one institution to another, there’s no mistaking the fact that the right relationship manager can be a tremendous asset to any business,” states Krueger. “Any reputable relationship manager needs to understand the community you do business in and be familiar with the market and your competitors.”
This is why a small, community-based regional financial institution is often the best option for small businesses. When the financial institution’s decision makers are truly a part of the community, they’re able to understand the worth of your business in a way that goes beyond simple numbers and credit scores.
Community financial institutions thrive when local businesses do well. Therefore, they may be more interested in lending to local businesses that contribute to the local economy than a national bank would. Many times, the people making loan decisions even live within the community and are able to truly appreciate the positive impact that your business has and the important niche it fills.
“While large financial institutions prefer to provide service for large accounts near and far, community-based institutions are focused on working with the businesses in their area alone,” states Krueger.
All of these reasons mean that in many cases, it can be easier for a small business to obtain a loan from a community financial institution than from a national chain. Therefore, businesses looking to grow could benefit from talking to local institutions, even if they have been turned down before.
“Community [financial institutions] often are scrappier than larger banks, taking on loans that require more complex methods to secure, partnering with other entities, or even overlooking elements of a spotty loan application if some of the key concepts are strong,” states Gwen Moran from
If you have any questions about financing your small business, please don’t hesitate to give us a call.

Related Blog Posts

Bank Employees Raise Over $8,500 for UPAF at Derby Day Fundraiser

Full story...

North Shore Bank at the 2015 Appleton Flag Day Parade [Photos]

Proudly celebrating the "Stars and Stripes" during this annual event. Full story...

COVID-19 Update: We’re here for you!

Full story...