I Ezine

There are at least two prominent motivations for small business owners seeking small business loans without banks. One is a desire to avoid a bank at all costs because of personal and professional antagonism for their past and present behavior. In particular small business owners can point to business financing being reduced and eliminated by banks even though they were bailed out by taxpayers so that this kind of financial activity could resume at normal levels.

For a second example, banks are failing at a rate that alarms most observers so logic dictates that small businesses should not book passage on a ship that is about to sink. Related to the enhanced bank failure rate is the lack of availability for routine small business loans at banks still operating. Small business owners have already realized that they must find alternative business financing services when their bank is not up to the task.

This article acknowledges why there can be a compelling business necessity to successfully obtain commercial loans without involving banks. To ensure that the main point (avoiding banks) is not overlooked, some lenders are using business financing slogans like “Think outside the bank”.

The growing bank unpopularity has provided plenty of motivation for finding commercial loans and working capital while also eliminating banks. From the early origins of American history banks and bankers have proven to be unpopular, and Thomas Jefferson is one who had similar feelings when he said that “banking establishments are more dangerous than standing armies”. The newest element in the desire to escape banking relationships is probably tied to the massive changes seen during the past ten to fifteen years.

Banks have changed just as significantly as Chrysler and General Motors, although bankruptcy was not an option for the banks due to legal and governmental restrictions. Except in paid advertising, it has become rare for either businesses or individuals to speak positively about their bank, but many of us still have warm feelings about earlier banking days. Foreclosure notices and exorbitant credit card fees have become the contemporary bank images to replace one of giving away toasters.