In our previous survey conducted in April 2012, we found that firms applying for credit at large national banks had notably less success than firms that applied to small banks...
A difference between small
businesses' success at large and small banks has also been documented by
the online credit facilitator Biz2Credit.
Biz2Credit works a bit like an online dating service—after answering a
series of questions (and providing the typical financial documents
required by lenders), small businesses are presented with five potential
"matches." To determine the best five matches, Biz2Credit identifies
what lenders are looking for—usually a certain credit score, a minimum
number of years in business, an established banking relationship, and
targeted industries.
The resulting credit applications
are the basis for the Biz2Credit Small Business Lending Index.
Biz2Credit also reports approval rates from the matching process for
large banks, small banks, credit unions, and alternative lenders. These
approval rates are plotted on the chart below.
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