Small Business Looks to Local Bank

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Published: September 29, 2008

Opening any small business can be a risk, but it’s becoming tougher to do with the country’s turbulent economy.

“We took a chance, rolled the dice and here we are.”

Kris and Margaret Furniss opened the specialty shop Caviar and Bananas in downtown Charleston four months ago.  They remortgaged their home in New York City to fund half of the business and hoped a larger commercial bank would loan them the second half, but they didn’t find any support.

“Because we were a first time business owners it was hard to find that financial backing.  So we went a local bank in town, South Carolina Bank and Trust and they really believed in our idea,” Kris told News Two.

“If you start a business, it may not be a bad time to do it, but it will have to be a self-funding business,” said economic advisor Paul Meeks.

He says loans will be even harder to come by for small business owners after the failure of so many financial institutions and that local banks may be a better option.

“The smaller banks may not be publicly traded and they also have a vested interest in their reputation in the community,” he continued.

The only downside, they may not have as much money to throw behind your business as larger banks.  However, these owners say they’re receiving the service and support they need to be successful.

“You are able to meet with the decision makers who are the ones deciding those things rather than at a bigger bank where you’re going in to talk to a guy who has to go talk to his boss’s, boss’s boss about it,” Margaret explained.

They admit it’s a financial roller coaster, but the risk is worth pursuing their dream.

Meeks also added that lenders are going to be very weary about who the loan money to, even if you have good credit.  He says if you are approved, you’ll probably have an extremely high interest rate.