A recent survey by the Federal Reserve found that banks may be loosening their requirements to secure a business loan and may be more willing to work with customers seeking a new loan thanks to a more competitive first quarter market.
The April 2012 Senior Loan Officer Opinion Survey polled loan officers from 58 domestic and 23 foreign banks with U.S. operations and found demand from businesses of all sizes was up, while lending policies were eased to accommodate the influx. More banks also said they were seeing strong increases in demand for commercial loans, a steady trend for the last six months. This sentiment was much more widely-shared among U.S.-only banks than and those participating in the overseas markets, including Europe.
Where commercial loan terms were slackened, banks sited more competition in the lending market. Credit unions are the strongest competition banks have to deal with for these kinds of loans, with representatives from credit unions currently pushing to loosen lending caps to businesses. They want to be able to expend more than the current 12.25 percent of their liquid assets on over-all commercial loans according to a legislation currently before the House and Senate. If you’re looking to benefit from the competitive loan market right now, an online marketplace like Boefly can help you get in touch with a number of lenders quickly.
“We want to get more loans out to businesses that will put people back to work,” said CEO Patrick Pierce of Minnesota’s City and Community Credit Union in regard to the law currently before Congress.