In an article published by Financing Solutions, many small business owners lamented the fact that they were unable to obtain a small business loan when they were looking to expand, maintain or save their company. The common thread amongst the failures was the inability of the banks they attempted to work with to put faith in their business or idea. Without a track record of rising revenues and profits, the task of acquiring a loan became unimaginable.
When it becomes quite clear that the idea of acquiring a small business loan from a large bank is impossible, the alternatives can seem bleak. For instance, The Guardian reported that many entrepreneurs over the age of 50 have turned to their pension pots in order to launch their business. Unfortunately, whether a pension has had enough time to build the capital required to be sufficient is a real issue.
There’s also the option to look at personal credit cards, but this is usually a gateway to disaster. This all begs the question:
Is their hope for small businesses in search of a loan?
John T. Coleman, the President and CEO of Tioga Franklin Savings Bank, explains that many small businesses can benefit from relationship building with smaller banks.
Coleman explains saying, “Trust is the foundation of any good business transaction. Large banks look at things in black and white, smaller establishments are able to take the time to form relationships with entrepreneurs that can lead to opportunities developing.”
There are multiple ways to acquire the funds necessary to launch, grow or maintain a business, but the bank needs to be willing to get to know the potential small business client and what makes them tick.
Tioga Franklin Savings Bank offers loan for a variety of businesses and purposes as low as $10,000, up to $3 million and more. If the business or principal have at least two years of experience in the industry and have never defaulted on a government-guaranteed loan, they can potentially qualify for a small business loan .
According to Coleman:
- Tioga Franklin is in the business of relationship building and that makes all the differences.
Local community banks are more likely to provide this type of arrangement as it requires attention-to-detail and a relationship between the bank and the small business owner.
Every small business in Philadelphia and across the country should explore their banking relationships to see if they are eligible for small business loans.
