If you asked small business owners 18 months ago how challenging it was to secure a loan through a financial institution, a majority would respond it was nearly impossible. However, those sentiments are starting to change.
A recent National Federation of Independent Businesses survey found that the total number of small business respondents who said they faced challenges with their financial institution in obtaining loans was the lowest since September 2008. Some in the industry see this as a small win, while others feel there is still a long road ahead before small business lending is back to usual. Financial institutions have made great strides to get to this point, by addressing challenges in the market to better serve their small business customers and create a lending environment they can trust.
For as long as one can remember, lending has largely been the basis of a relationship established between a financial institution and small business owner. In 2011, it will be no different, continuing to be a barometer for successful relations between the two parties. But, it will also open doors of new opportunities for financial institutions to become more strategic partners in the success of small businesses.
What are you seeing in your local markets when it comes to small business lending? Let us know by leaving a comment below.