You've probably heard from sources like FDIC that for the first time in three years, bank lending increased. However, bank loans to small business keep dropping. Yet, one bank boasts that its lending to small- and medium-sized business has gone up higher than the industry average of less than a 3 percent increase.
The New York Times article tells the story of Sterling National Bank, a bank founded in 1929 -- during the one of most turbulent years in American history. The founders decided to start the bank because it saw few banks serving small- to medium-sized businesses.
So how does Sterling pull in a 10 percent increase, significantly higher than the industry average? The problem lies with its definition of small- to medium-companies. "... the key phrase here may be Mr. Millman's qualification, what we call small and mid-size companies. For Sterling, those are companies with revenues that start at $4 or $5 million and reach as high as $100 million and who borrow as much as $20 million."
The definition of a small business loan according to FDIC is $1 million or less. And by that definition, Sterling's 10 percent shrinks to three. The end of the article is telling.
"Where would he recommend people who want $1 million loan go to get one, I asked. Sterling National Bank, he answered: 'The experience will be much better at an institution like ours at that dollar level than at any other institution I can think about.'
"But when asked where borrowers seeking smaller loans — $500,000, say — might go, Mr. Millman had no similar advice. 'I honestly don't know the answer to that,' he said."
We work with companies that bring in $1 million in revenue. Feel free to contact us about getting more working capital. No obligation.
What Our Clients Are Saying
- George Del Toro,
We were funded [in 10 days] (the approval process was very smooth). The way I spend my time has changed dramatically since then. I can spend as much time as I need visiting with customers and out on the field... In closing I would like to tell you that Capital Solutions has made it possible for GDT Well Service, Inc. to triple (300%) its business in the last year, without any of the "growing pains".
GDT Well Service
- Brenda and Mark Neufeld,
In our very first conversation I noticed that you not only understood our situation, but also the Oil & Gas trade. Capital Solutions has been an invaluable help... We have grown our business exponentially thanks to you. I can now probably qualify for a traditional line of credit (...but I'm not sure I want to).
B.N.M. Piloting Services
- Keri Gray,
The HUGE difference I found since we are working with you... is in the day-to-day life... Since Capital Solutions is funding us there is no "fear"... when I talk to a vendor or need to make payroll. You guys have also bent over backwards... to make it work for us. I really appreciate that.