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Big Banks are Holding Back the Businesses of SMEs

Is an uncooperative big bank holding back your business? There is no doubt the big banks can often be conservative lenders when it comes to small businesses. Limited approvals aren’t the only way larger banks hold up the growth of SME’s who are looking for funding.

Here’s how they do it:

They are Too Slow

If you own a small business and have tried to get funding from a big bank, you know how slow that can be. The whole process probably starts when you make an online enquiry about a loan with the bank assuring you of quick feedback. Every other thing from that moment is snail-paced. You are often required to provide additional information, prove you’re a clever business person a dozen times over and then offer your signature on several documents again and again. The whole process, unfortunately, is slow and time consuming.

They use Outdated Means of Communication

This is the computer age and that means there are ways you can quickly engage with your lender, i.e. online chat services, apps, etc. You won’t get very far with this when it comes getting funding from a bank. Agreed, you can submit documents online, but then a representative will have to review those documents and get back to you, and there is no given timeframe for this. In today’s digital world, consumers are looking for solutions that they can take with them wherever they are going. In our experience, most banks are just not ready to do that when it comes to loans.

They are Not Flexible

Banks tend to tie down their clients for long periods. A short-term loan can easily extend up to 5 years when banks are involved. This means you’re stuck in a loan solution that won’t grow and change as your business does. However, when you operate with other funding providers, there are no lock in contracts or lengthy complicated documents for you to complete. With the alternatives, you can enjoy flexible repayments by choosing to get funding only when you need it.

If you’re looking to grow your business with a few extra funds and want a quick and simple finance solution, talk to Unsecured Finance Australia about how we can help you meet your business finance needs.

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