Advantages of Using a Local Bank for Your Business Loan

5/3/2017 Brooke Thomas

If you’re a business owner or a potential business owner, you know how important it is to find the right bank for your business loan. Bigger is not always the best option when it comes to choosing the right bank, especially if you’re looking for a small business loan. When comparing the pros and cons of big banks versus small banks, you may find that smaller banks are actually more beneficial to your financing needs.

With that said, here are 6 advantages to using a local bank for your business loan.

Decision Makers are Local

The key decision makers are right here in the community which means they talk to customers directly and understand the needs of the local market. Local banks base their decision to approve a business loan on more than credit, they also rely on their local knowledge. That’s why loans that big banks often reject, local banks sometimes are able to approve. They understand and feel the effects of the decisions they make.


Time is money and as you start your business, there’s not much of either to spare. The faster you’re able to get your business up and running, the faster you’re able to begin earning income. A local bank offers you the advantage of being able to make decisions more quickly so you’re able to start making money sooner.

They are People Lending to People

Local banks take a personal approach with their customers. You won’t be treated like you’re an account number, you’ll be treated like a person. It’s easy to get in touch with your banker to answer any questions you may have about the lending process. When you reach out to a local bank, you will speak with someone, never a machine.

Same Loan Officer

We want to get to know you so we can learn and understand the goals of your business. That’s why the lenders at a local bank invest so much of their time and energy into their customers. There is no uncertainty as to who you will be speaking and working with. Your loan officer works closely with you as your partner. They strive to know you and your business objectives and work hard to help you reach them. If you’ve ever wondered what your banker wants you to know before you start your business, read this blog by one of our commercial lenders, Eric Flick.

Helps Grow the Local Economy

Small businesses are the heartbeat of the local economy because of the large number of jobs they provide. According to Fundera Ledger, 39% of businesses in the U.S. that had 50 employees or fewer accounted for 1.4 million new jobs in 2014. For a small business, it’s much harder to obtain financing from a large bank than it is from a local bank. In fact, in 2016 big banks approved only 23% of small business loan requests while local banks approved 48.7%.

They Share Your Commitment to Supporting Your Community

The community a local bank resides in, is the community where the employees live and work as well. That’s why many local banks are so committed to investing in the prosperity of their local community. When the community thrives it is a direct benefit to the bank and its employees.

Ultimately, understanding the priorities and needs of your business will determine what the best financing options are for you. Because competition between banks works to your advantage, consider looking for financing information from multiple banks. If you find that a local bank better serves your business’s financing needs, know that at Marine Bank, we want to get to know you and learn more about those needs so we can partner with you to make your business a success. Learn more about our Commercial Lending opportunities today.