Make no mistake: Competition for small businesses is heating up among big banks, credit unions, alternative lenders and every institution in between. Small business owners now field a barrage of ads, direct mail pitches and sales calls that promise fast funding access. The competition then heats up when you add these ingredients: low interest rates, business investors Read More
The 29 million small businesses in the U.S. account for 54 percent of the country’s sales, according to the U.S. Small Business Administration. And in a digital era gone entrepreneurial, the small business sector is also growing, with more startups and declining rates of failure. Yet if at least some vital part of the small business space Read More
Small businesses have long mystified banks. They make up an overwhelming 99 percent of all businesses—yes, 99 percent—and employ close to half of all workers. They generate more than 60 percent of the private sector’s net new jobs. Yet despite the critical role small businesses play in the economy, most banks struggle to generate strong returns from Read More
Small businesses constitute the civic backbone of our communities and largest drivers of job creation and economic growth. The U.S. Small Business Administration estimates that 28 million small businesses in America account for 54 percent of all U.S. sales and provide 55 percent of all jobs. Yet, small businesses today face a range of challenges, including numerous Read More
Thousands of small businesses emerge nationwide every day. In fact, the Kauffman Foundation, a national entrepreneurship nonprofit, recently revealed that there are now 310 entrepreneurs for every 100,000 adults in the U.S.—which translates into 530,000 new business owners every month. Despite this sharp rise, the Small Business Administration reports that approximately half of businesses fail within the first Read More
A small business owner doesn’t want to wait weeks for a decision—and today, they know they don’t have to. When it comes to securing a loan, small businesses today claim no shortage of options. And the proliferation of online and marketplace lenders has led to a significant result: Many bankers now question their competitive posture. Leading Read More
Bank marketing is no longer just a matter of pushing credit via traditional advertising. Many bank marketers today are shifting the focus of their activities to advising, educating and otherwise engaging with small business owners seeking financial services. “In the old days, it seems every time we talked about small business we would use the tagline, ‘America’s Read More
It’s no secret that small business loans historically offer small profit; in fact, there is little economic difference in funding a $100,000 loan versus a $1 million loan. However, even though these loans may not always be the biggest movers to a bank’s bottom line, this type of lending is essential to establishing and building lasting relationships Read More
One way for banks to increase banker productivity and per-customer profitability is to better link their commercial and private banking/ wealth management efforts. Serving both the commercial and personal wealth requirements of a business not only builds revenue but also increases account stickiness and improves client retention.Only after starting my own business did I realize how intimately Read More
Over the past year, the alternative lending industry has taken several steps forward and, then, a big leap backward. The most notable step forward centers on the relationship between OnDeck Capital and JPMorgan Chase & Co. Chase now leverages OnDeck’s technology for its small business loans. This relationship, among others, has helped to focus senior bank managers Read More
