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Benefits of Borrowing from Your Community Bank to Grow Your Business
Articles & Updates

Benefits of Borrowing from Your Community Bank to Grow Your Business

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A recent survey from global technology firm Intuit predicts that 17 million U.S. small businesses will launch in 2022, a 50% increase over 2021! Starting a new business is an exciting (and maybe a little bit of an intimidating) endeavor. But whether you’re an entrepreneur flipping the ‘open’ sign on your company or a small business owner ready to expand, finding financial support to fuel your plans is often challenging. 

  • Do you ‘bootstrap’ your growth with savings, credit cards, or company equity?
    • Community banks like Consumers National Bank caution business owners against using the bootstrap approach. You'll face the risk of reducing cash reserves or paying a higher interest rate on credit card debt. In addition, if you're waiting for sufficient cash flow to invest in your business, you’ll have slower growth.
  • Do you take out a business loan from a ‘big bank’?
    • Forbes reports that big regional banks approved less than 15% of small business loan requests in the last few months of 2021, a decline of 13 points since 2019. Big banks tightened requirements to lower the risk of business lending and, as a result, are approving fewer loans for entrepreneurs.

How a Loan from Your Community Bank Helps Your Small Business

Community banks like Consumers National Bank have a strong interest in the economic development of their towns, cities, and neighborhoods. 

Community banks continue to invest in teams that support small business growth.

  • By keeping decision-making and loan processing local, banks like Consumers National Bank can reduce the time it takes to approve a small business loan.
  • Another noteworthy fact - community banks have a history of supporting women and minority-owned businesses to foster equal opportunities.

Community banks offer a range of business lending solutions to align with your needs.

  • From government-backed SBA loans to flexible term loans that help build credit, community lenders like Consumers National Bank offer cost-effective funding for small business owners.

Business Lending at Consumers National Bank

The business lending process at Consumers National Bank is straightforward:

  • Our lending team will talk with you about your business goals and financing needs.
  • We’ll review your loan application which includes information about how you plan to use the funds, such as:
    • Purchasing inventory or equipment
    • Hiring staff
    • Buying, building or renting an office or facility
    • Developing your product or service
  • We’ll explore financial solutions for you, including business term loans, SBA loans, commercial real estate financing, or construction loans.
  • Our business loans provide you with longer repayment terms and lower interest rates than credit cards, and we’ll identify the loan that fits your timeline and budget.
  • Local decision-making (and this is an important one) speeds the approval process, even with SBA business loans. Consumers is an SBA award-winning bank and you can count on consistently high-quality service.
  • Of course, you’ll continue to receive the responsive and personalized service that sets Consumers National Bank apart from other business lenders.

Contact the Consumers National Bank team or visit one of our local branch offices in Northeast Ohio to discuss your growth strategy. We’ll explore business lending solutions that will help you reach your goals! 

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