Did you know that 10 percent of Americans are likely to take out a personal loan in the next year? If you are one of these individuals who need to take out a personal loan or get a loan for your business, expediency is paramount. You want to get that money as fast as possible without being held up with an application in limbo. You want to avoid hassles and endless paperwork, and you’d prefer to talk to your loan officer in person. Enter the world of community banking. Here you will be able to secure a loan much faster than if you were dealing with a mega bank.
The first step to getting a loan is to submit a loan application. At your community bank, you can walk in, talk to your loan officer’s assistant, and complete the application right then and there. You often know on the same day and in the same visit if your application was accepted and approved. This gives you the advantage of making quicker financial decisions and getting on with your life. Whether you need a loan to purchase a vehicle, pay for tuition, cover medical emergencies, or buy equipment for your business—time is money that you can’t afford to lose and community bankers know this.
If you were to go through a mega bank, first you have to find the online form pertaining to the loan type you want to apply to. If you fill out the wrong paperwork that will greatly delay your loan application. Then you have to submit documents as needed via an online network as part of the application process. What if you don’t have access to a computer with a scanner device? What if you aren’t comfortable sharing your information online for the application process? What if something goes wrong and they never receive your loan application on the other end? How do you even know this has happened?
This is why most people avoid trying to take out a loan with an online lender. The process is too complicated and takes too long. There is too much red tape and not enough transparency. As a result, this is where community banks excel, by completing personal and business loan applications and processing in a timely manner.
Did you know that if you go with a mega bank to get a loan it can take up to two months to complete the process? For example, from submitting your application to signing your commitment letter, the standard time frame for a small business loan by Capital Source via Capital One is 45 to 60 days. That is a long time to wait for a small business loan, especially since most customers choose a loan when they need money fast.
Whether it is for operating capital or to cover an unexpected expense, most small business owners do not have the luxury to wait for two months to get a loan. What happens if your mega bank lender requests additional information or adjustments on your application? That process can start all over again. So, in reality, the process can take up to three months according to a former commercial loan officer. Local banks offer expediency so that you aren’t stuck waiting for a quarter of the year on your commercial loan, which will keep you in business.
In addition to allowing consumers to get loans faster and with less hassle, community banks score big on the availability of loan opportunities. For instance, let’s say you are a farmer who is trying to get a loan for your business so you can afford a new combine. This is a lot of money, exceeding half a million dollars, and you already have a line of credit and couple of other business loans open.
Your mega bank can’t help you so you are driving over to your local bank. Here your friendly loan officer helps you find a regional cooperative grant that gives you the funding you need without having to secure a loan at all. In the end, you increase your revenue and are better able to pay off your other loans and line of credit so that the next time you need to borrow money you are in a better position to do so.
It’s that kind of customer service you can look forward to at a local bank. Your community bank understands the diverse needs of the community and can offer more than just a generic loan application. These bankers provide an invaluable resource in being a financial lender that looks at more than just figures on a spreadsheet.