• Rudy Upshaw

The Best (and Cheapest) Form of Business Credit

Businesses need capital to operate and that hasn’t been more relevant than today! There are several sources of capital but the one that has been discussed most during these times is small business loans. There are numerous providers of small business loans out there each with their own individual underwriting process and risk profiles. Some ask very few questions and have minimal underwriting standards while others provide strategic advisory services to help you mitigate the risks of borrowing the funds.

Having advised client’s for over 27 years I can say that bank credit provides the best value for small business. Not only are the interest rates the lowest of the available loan options, banks have a vested interest to work closely with the business owner to ensure that there is a high probability that the business is able to cash flow the loan.

Here are my reasons to work with a bank for your small business loan needs:

1. RELATIONSHIP – The majority of banks still have a desire to operate with a relationship approach to their business clients. Business typically have individualized and sometimes complex banking needs. Having a good working relationship understood by both the business and the bank is critical for the loan needs of the business.

2. ASSIGNED LOAN OFFICER – Each bank has a different structure on how they work with different clients. Most banks assign a commercial banker to your business relationship. His/her goal is to help you with your growth needs and mitigate risks to increase the probability of your success. The commercial banker has regular meetings with you to review the goals/performance of the company and helps look forward to upcoming needs the business to he/she can advise you on what is needed in the future.

3. UNDERWRITING – The bank is required to review all the information related to the loan request to determine the likelihood of the loan being paid back. This process gives you more information to make more informed decisions for the business.

4. LOWEST COST PROVIDER – Bank loans have the lowest interest cost compared to other sources of capital which allows you to retain more profit in the company.

5. FINANCIAL ANALYSIS – Banks perform financial analysis work on your business including cash flow analysis, ratio analysis and financial statement spreads. This work gives the business greater insight into its financials to help prepare for future strategic initiates. Each bank may do this differently and it is important to understand how your bank does it.

There are many considerations when exploring your business loan needs. In my experience, banks offer the best form of business credit and the best value. This article could go on several more pages with more considerations and pros/cons. If you are exploring loan options for your business and don’t know where to begin, let’s set time to meet by phone or zoom so I can get you pointed in the right direction: (918) 970-0790




R u d y U p s h a w

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Tulsa, Oklahoma

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