Jack R. Brewer

Why Banks Treat Small Business That Way

 

Having been a bank officer, I can confirm Ronald B. Cohen's remarks in June's Speaking Out. Only the most senior bank officials are given the kind of latitude and flexibility necessary to service the credit needs of smaller companies.

Unfortunately, senior bank executives prefer to deal only with larger accounts. The small business borrower is stuck with a junior officer whom bank management has given little more than a copy of the credit policy and an admonition to make "good" loans. The high turnover in junior lending positions forces the smaller borrower to educate a steady stream of young bankers about his business and its financial requirements.