Goldilocks had it right- not too big, not too little, just right!

A new client was looking for a bank line of credit to finance their growing business. 
They felt they had two good choices that they were close to:

• Their current bank, where they currently had their bank accounts, one of the larger banks in the metropolitan area.
• The other choice, a smaller community bank, where the president happened to be their next door neighbor.

We first helped the client get ready.  We took care of their computer issues with their QuickBooks program so we could update their numbers.  We went through their current financials and straightened out their reporting.  Finally, we did a financial forecast to determine what their need would be, what collateral there was to support the loan and the coverage they would have to pay back the loan.  The bank package was ready-now where to send it.

We had concerns about their two choices, both fine banks.  No bank though, can serve everybody well- they do their best when you are in their target range.  In this case, their current bank we thought would be too large. The second bank, they would be likely to outgrow quickly and might not have the debt capacity and services they needed.

We made a third recommendation, a bank that specialized in the small business market which we knew to be very responsive and a lending limit they would not outgrow for many years.

The client sent the bank package to all three banks.  The third bank we suggested responded quickly and had a term sheet within a few days.  Their proposal met the client’s needs and the client appreciated the speed.

Then it became a waiting game.  The smaller bank lacked the resources to meet the needs as well and needed extra time to respond.  The account officer at the larger bank had to go through headquarters approval.  Their term sheet was not as competitive.

It was an emotional decision for the client since they were loyal to their relationships and not one for rapid fire changes.  In the end, the husband and wife team realized the third bank was the best fit and like Goldilocks, said this one was just right.

There’s a bank out there for you. 
Consider a range of options so that you too might end up with the one that’s just right!