03/17/15

Small Business Loan Bracketology: Game 1, Big Banks vs. Local Banks

In today’s big match up, we have Big Banks taking on Local Banks. Big Banks generally have more resources available to make banking easier, but Local Banks have a huge threat with their close business relationships.

Remember, we’re seeing who has the best small business loan option for a restaurant with one year in operation, an average of $20,000 in monthly revenue and good credit. This business is looking for $50,000 for working capital and needs the funds within 3 weeks.

Let’s see how the game plays out.

Big Banks start out strong with a larger reach, better brand recognition and billions of dollars to loan. However, Local Banks rebound with a hometown feel that makes the small business owner feel at home, since they understand the region better. Not only that, Big Banks are only looking for loans over $1 million. Local Banks take a commanding lead…

Final: Local Banks win! Big Banks are generally looking for loan amounts over $1 million to overcome their processing costs. Local Banks move on to the next round.

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About the author

Erik Larson
Erik Larson frequently writes for Lendio about SEO, Digital Marketing, Social Media Marketing, Business Loans, and whatever else strikes his fancy. He can be found on and Twitter.

Comments

  1. Great post Erik, it’s a similar situation here in the UK- the bigger banks have far stricter lending restrictions so small businesses and start ups are encouraged to go to smaller, local banks who seem to not only understand but favour the new businesses far more

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