Here's some bad news: a recent survey of 450 companies with sales of less than $15 million found that one company in five expects to outgrow its bank within the next couple of years. The management at those companies believed they needed more services than their current bankers (often community or regional banks) could provide.

Do you expect to outgrow your bank within the next two years?

No: 79% Yes: 20% Not sure: 1%

What are the reasons you expect to outgrow your bank?*

Range of services is too narrow 66%

Bank lacks innovative services 62%

Terms and covenants are too restrictive 53%

Bank is unwilling to lend more 41%

Bank has reached legal lending limit 31%

* Multiple answers were permitted.

Source: "IBM Survey of Small Business Attitudes Toward Banks and Banking," the IBM Finance Industry, Chicago, 1995.

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