"Bank Lending Loosens", Say the Reports. Opportunity for Retailers?

According to an Associated Press report on June 18,

"Banks are making it easier for small businesses to get loans, and they're giving companies better terms and lower interest rates. 

"Banks are taking more steps to persuade small businesses to borrow,' said Dun & Bradstreet Credibility Corp. CEO Jeff Stibel. 'Interest rates are falling. Banks are willing to lend for longer terms. We're entering a New Normal,' he said."

This sentiment was echoed elsewhere.

"As the economy improves, businesses are able to get funding from traditional sources, and they are less desperate. We are starting to see a flight away from short-term, high cost money," stated Biz2Credit CEO Rohit Arora on their May Lending Index. 

Well. That sounds encouraging, doesn't it? It also might mark a fine opportunity for retailers looking to refinance, expand, or even acquire other stores.

How to take advantage? As always, especially as retailers, it is essential to do your homework.

• Make a strong case for where your business is now
• Show how your business compares favorably to others in your retail segment (the Retail Benchmarks at The ROI can help)
• Prepare a cash flow plan, showing how and when you will repay the loan 

Approach Banks That Actually Lend to Small Business

And, not to be overlooked, search out those banks most likely to lend to retailers: the community banks. 

Here are 2 useful links for you from the Resources for Retailers page of Retail Startup (one of our microsites.)

• Independent Community Banks Locator, from the Independent Community Bankers of America. Just enter your ZIP code, say how many miles you are willing to travel (from 25 to 100), and they immediately identify all the community banks in that area.

• Banking Grades.  Based on data provided by the banks to the FDIC, this organization assigns a letter grade (from A to F) to banks for their small business lending. You can search by bank name, by ZIP code, by City & State, or by county. 

And here's another one from The Retail Owners Institute site:

• The GMROI "Bankability" Rater, a very unique approach that could give you a competitive edge when making your case with lenders.

All 3 of these resources might save you time, and hopefully, frustration! And, they're all free!

Now, Lenders Compete(!) to Lend to Retailers

Is there any opportunity for a responsible retailer to get reasonable financing?! 

Our quest to find a positive answer for that question has gone on for years.

That's why we have developed a new service: Banks4Retailers.com.  

Now retailers can do their own comparison shopping - for lenders!

Here is the concept behind this new website:

• Retailer Track Provide the tools for a retailer to put together a responsible, substantive loan proposal.
• Lender Track Find lenders who are able to evaluate a retail business on its merits, not just its industry label. 
• Reviews by Retailers  We are providing a platform for retailers to share their experience with these lenders:
  • Were you treated with respect?
  • Would you refer other retailers to them?

The 5 very different organizations on the Find Lenders page provide access to over 2,500 sources of financing, from traditional banks to "alternative lenders" to investment funds. They offer streamlined matching services between a retailer's financing request and willing lenders. All online, in retail time. 

Is this what they call "disruptive lending"? 

We sure hope so! 

But, like everything else in retailing this is an on-going experiment! 

• We make no guarantees that any retailer can obtain financing. 
• We are not recommending one lender over another, nor does any lender's appearance on the site constitute our endorsement of them.

Our goal is simple: provide a free service to retailers – a no-cost, no obligation service – where lenders compete for your business.

Please go check it out. And let us know what you think. Even better, add your comments on the Review page for Banks4Retailers; share your thoughts with other retailers.