Reported by Patricia C. Amend

Capital;

 

If your need for capital is growing, you may be tempted to move your business to a larger bank. Before you do, however, be sure that it's set up to give you the service you want. Few of the major regional and national banks are.

True, they may tell you otherwise. These days, major banks are beating the bushes for new commercial customers. But the fact is that small companies have a lot more clout at a smaller bank. "That doesn't necessarily mean you can get a lower borrowing rate," notes Alex Sheshunoff, president of Sheshunoff & Co., a leading bank-consulting firm. "But you can usually get quicker answers to your requests, and you can often deal directly with senior people."

In general, he says, you're probably best off doing business with the smallest bank that is capable of handling your capital needs -- which may mean staying right where you are.