Below are three ways that big banks hold SMEs back when they are looking for business finance.
1. They are slow
The process of getting a loan from a big bank can take months. It probably starts with an online enquiry and a promise to have someone call you back as soon as possible. From there on in it's a snail's pace. Paperwork can go missing, extra information might be required, you have to prove your identity again, and they need what feels like several thousand signatures from you.
2. They use outdated ways to serve you
The digital age means that there are new ways to engage with your lender. Apps, purpose built user interfaces and online chatting services are just a few of these. However, when it comes to getting a loan from a big bank, you probably won't get very far with this. Sure, you can upload documents online, but then you have to wait for someone to review those documents and then get back to you. Consumers today are after solutions that meet them where they are. This is where online application processes come in handy - you don't have to leave to comfort of your own office.
3. They are inflexible
Banks play the long game. They tie their clients in for long amounts of time. Even what is considered a short-term loan can be up to five years. This can mean clients are tied into a loan solution that might not suit them in the future. With other funding providers, there can be no lengthy and complicated application forms or agreements, and no lock in contracts. You can chose to get funding only when you need it and enjoy flexible repayments.