There seems to be a trend in some of the latest business news that banks prefer big business to small business customers. And of course, that’s understandable – to a point. Big business will of course invest and borrow more money, but what may be overlooked is that small businesses are propping up the U.S. economy more and more.
Which is why they shouldn’t be sidelined as banking customers. There are quite a few articles lately that have been pointing to banks that have dedicated small business divisions as seeing an increase in profits.
If a bank decides to create a dedicated, proper small business section that assists and guides small businesses through their lifecycle – start-up, growth, expansion, exit – and provides them with the tools and resources to survive and thrive, the benefits are going to come back to the bank in spades.
Small business advisors, financial tools, business guides, cash flow and sales forecasts, business plan templates, action plans – these are all examples of what a bank will need to build a great small business section.
The below article looks at why banks prefer to lend to big business than SMEs.
Read the full article at: www.pymnts.com