True story. Lorenzo had been in business for a couple of years, and was seeking some additional funds aka Working Capital. He spoke to a commercial loan officer at a national bank, a humongous “money-center” bank. He requested of the loan officer a Small-Business Administration loan ( an “SBA” loan).
He was told that the bank could not even consider his request for 180 days! Six months!!
As I discussed in a previous blog, another small-business owner tried to get an exception for a “due-on-sale” clause from a huge national bank. After several months of trying to get an answer, he and his local banker gave up. No one in the bank’s hierarchy could, or cared to, come up with an answer!
Here’s what you do if you own a small business and need, or think you’ll ever need, business funding. FIND THE SMALLEST COMMUNITY BANK YOU CAN, AND SEEK OUT THE HIGHEST COMMERCIAL LOAN OFFICER ON THE BANK’S TOTEM POLE.
By doing so, you will, guaranteed, get expeditious answers, either a yea or nay, without having to deal with the massive bureaucracies of the huge banks.
When I was training commercial loan officers at my community bank, I taught the loan officers, when considering a business-loan request, to say “yes,” or “why not,” as expeditiously as possible. Avoid wasting the business owners’ time.