You are here: Home / Archives for Business

Finding a Bank that Wants the Business

Someone looking for financing for their business or project may feel as if their choices are limited to the mega-banks. In reality, there are still many small banking institutions out there that are dedicated to serving their customers needs. Banks like these want to expand their deposit base and will be much more flexible when it comes to funding a loan or a line of credit.

What type of bank to look for depends on the goals of the business owner. If purchasing a business is the plan, seek out a commercial bank. Even if the bank is located a few towns away, they are still worth the journey. A commercial bank has years of experience providing financing to business owners. They have the unique placement of being small enough to know their customers, but large enough to call on a reserve of money for financing. And because they are familiar with commerce, they understand how commercial businesses have ups and downs. This gives them a somewhat built in flexibility for when times are tight.

Credit unions are another potential source of funds. While they do have a federally mandated limit on how much they can loan to businesses, they’re not completely restricted either. And credit unions are attempting to fill the void that the large banks left when they restricted lending practices. They make an excellent choice to go to when seeking smaller amounts of money. In a nutshell, credit unions want the business and will be an active partner in helping a new customer get off the ground.

There are other numerous ways to find financing when the big banks turn down an application. Researching the Internet will come back with many institutions that are willing to loan money. No fly by nights here – there are plenty of unsung but grand lenders who are rock solid and ready to lend.

Enhanced by Zemanta
Filed Under: Investment Banking Tagged With: , , , , , , ,

Where did Banking Begin?

Old banking chambers on Swan Street.
Image via Wikipedia

We all know where money ends. It goes to pay our bills, buy groceries, and purchase movie tickets. But have you ever wondered, “Where did it all begin?â

Long before there were official national currencies, a form of banking existed. In the ancient world, as far back as Babylonian times, money came in the form of grain, cattle, produce, and later gold. Since castles and religious temples were often the safest, most well-built structures in their local area, they often became a bank of sorts. There are records of temple priests in Babylon lending to merchants.

History also records that Greek and Roman societies were involved in banking and financial transactions. One record tells of an instance in ancient Greek of a man writing a bank note which could be cashed in another city, thus eliminating the risk of being robbed while traveling. The Romans also used banking and better developed the financial system, but were limited in their capacity to facilitate the use of credit since they preferred cash transactions.

As empires expanded and global interaction became more prevalent, there became an increased need for more sophisticated banking. As early as 9th century B.C., Muslim traders from what is now known as the Middle East were able to use checks in China to purchase goods. This dramatically lowered the risk of trading since theft was one of the biggest threats to international merchants.

The Crusades also played a role in stimulating bank growth. King Henry II used Templars, wealthy land owners, as his bankers in the Holy Land. These landowners had castles all over Europe, so they set up a system of accepting local currency and then giving a bank note that was redeemable at any of their other castles.

Fortunately for us though, banking has come a long way since the Crusades. Instead of castles, people today can rely on local banks, ATMs, and stores that allow “cash back” to meet their banking needs.

Enhanced by Zemanta
Filed Under: Banks Tagged With: , , , , , , ,
Newer Posts »