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More than 4 in 10 small business owners would prefer NOT to finance equipment with their bank.
While you might jump to conclusions about the reasons businesses look for alternative sources of equipment financing, you might be missing the point—preserving working capital relationships.
Banks are getting pretty beat up these days. While there have been a few bad actors, the overwhelming majority of bankers are still there standing firm for their clients. Sure, relationships are more complicated, but the average bank has had to increase their legal and compliance staff by more than 200% in the last ten years just to keep up with the new “strength” requirements of our government. For many businesses, it’s not that banks can’t help with equipment needs; it’s that adding additional debt might limit or strain the bank’s view of your lines of credit.