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Small business lending increasing as economy improves

Small business lending increasing as economy improves

According to recent reports and the interview below, commercial finance is on the rise.  Small business owners seem to be a bit more optimistic about their companies and the economy in general and therefore willing to invest in upgrades and expansions that have been put off  for the last few years.  Every situation and every borrower is different and there are options, depending on each particular circumstance.  Often a loan will need to be secured with assets, asset based lending, if the company balance sheet is outside the bankable box.


Source:, May 18 2012, by Michelle Edmonds

LITTLE ROCK, Ark. (KTHV) — The business lending environment has had a lot of ups and downs over the past few years with the recession.

Carole Smith, senior vice president and loan officer at Delta Trust Investments, spoke to THV’s Ashley Blackstone on ‘Today’s THV This Morning’ about the commercial finance environment and what business owners should be looking out for.

What changes do you see in commercial lending today with the economy improving?

From what I’m seeing and hearing at Delta Trust, the commercial loan sector is steadily improving as our business customers come out of the recession. Business owners are slowly recovering and becoming more confident in today’s economy. We are happy to see some of our business owners do what they have put off doing for the past 2 or 3 years. They are ready to start expanding and investing in their business.

Give an example of how they are doing this – and an example of what type of customer you like to service?

We are happy to see business owners now willing to construct or build their own buildings – instead of renting space. Many times their monthly costs end up less than the rent payments. During the recession most were not willing to take that risk. We especially like to help small and family owned businesses that not only need commercial loans but also have estate planning needs, business succession planning, retirement planning, insurance – and we can provide all this under one roof

Are businesses only borrowing for new facilities?

No, I have also seen also a lot of business owners wanting to invest or upgrade their current equipment. The type of equipment obviously depends on your business, but it can be anything from vehicles or computers to heavy machinery.

Do you also make loans to individuals who don’t own their own business?

Yes – not only for typical consumer needs. We see more individuals coming back into the real estate market, for example, to invest in property to rent for additional income – and we often make those loans secured with the asset they are buying (asset based lending).

What should someone know if they are interested in a commercial or business loan?

Every situation and every borrower is different, but we will provide the potential borrower with a list of basic financial information we need – and then talk through the specifics of their particular deal.