High Interest From Them Means Low Interest for You
Big Banks Leading the Lending Charge
According to a recent Wall Street Journal article, a survey of loan officers performed by the Federal Reserve “cited more aggressive competition” among lenders.
Why is this good for you? The increased competition among banks to lend money means lower interest rates for loan recipients — for you. If you’ve been waiting for the right time to get a business loan, there’s good news. Your wait is over.
Business loans, referred to as commercial and industrial loans, “were up 4.4% in the fourth quarter and 16% for all of 2012,” according to SNL Financial of Charlottesville, Va. The article went on to recognize that there has been, “a renewed willingness by some banks to lend cheaply and on flexible terms.”
Here’s a tip: If you have a Wells Fargo & Co. bank near you, check out their loan
offers. They are one of the large banks leading the lending charge, having increased their total number of loans by 12% in 2012.
Our very own Kiddie Academy CFO Sue Wise said, “Our franchisees are being offered more loan packages than they have in a long time. The banks are much more willing to lend, and the offers have become more aggressive and favorable for our franchisees.”
Why the shift from tight purse strings to competition?
- In 2009, when unemployment was at its most recent high point of 10%, people began putting their money in a safe place: banks.
- Since then, bank deposits have been steadily growing as people have been getting back to work and earning more money, still wanting to keep it safe.
- Banks are now packed with liquid assets and looking to grow, which means making money by loaning money.
It’s time for you to take advantage of what the chairman and chief executive of EagleBank called “ridiculously low, low interest rates.”
And remember, people looking to start a franchise business have an increased chance of securing a business loan because the banks feel more confident when they’re investing in a proven business system.
Please feel free to post your ideas, questions and comments below, or email us at email@example.com