While the economy may be steadily improving and the opportunity for growth for businesses in all sectors is more favorable than in the past decade, there are still considerable challenges that small business owners face. This is true all across the country from large cities like New York to smaller cities like Helena, MT.
One of the biggest obstacles for many small businesses is obtaining a commercial loan. Also called a small business loan, this is typically money that is used by the business to allow for growth and expansion, to improve production or performance or to move to a better location. Of course, a business loan can also be used to hire additional employees, to increase inventory or any number of other options.
The Challenge
The challenge that has to be overcome by a small business to obtain a commercial loan is really about being seen as creditworthy by the lender. Small businesses that apply for loans tend to relatively new businesses or startups or even family-owned businesses where personal and business finances may overlap.
Large lenders, such as the national banks, have very strict lending requirements that simply work against small, local businesses. In addition, the amount of documentation required can also be an issue for many small business owners, which may prevent them from even going through the loan application process.
The Better Option
A better option for a Helen, MT, small business is to apply for a commercial loan through a local Credit Union. Unlike a large bank, these are community-based lenders with an understanding of the local markets and growth potential for businesses within their own geographic area.
They are also able to understand the challenges that local businesses face and work with the business in providing financial products and options that can provide loans and financing for many types of funding needs.
