How Your Local Community Bank Can Be a Game Changer for Your Small Business
If you’re the owner of a small business in Utah, you have more options than ever when it comes to business banking. You could go with an online bank (digital-only bank), a large commercial bank, or one of the many credit unions that offer business banking. But there’s another option—a diamond in the rough—that is sometimes overlooked: your local, community bank.
It’s easy to think that “all banks are the same” or that the differences between national banks and local banks are nominal. But nothing could be further from the truth. Large commercial banks operate on a massive scale, influenced by national and global institutions, and with the mandate to generate revenue through higher fees and interest rates.
Community banks, by their very nature, exist to focus on businesses and individuals in the local area. So you’ll often find lower fees and better interest rates—as well as more personalized service and the ability to build a one-on-one relationship with your banker.
Five reasons to consider a local, community bank for your Utah business
1. Local banks understand Utah’s unique business environment
Locally-owned banks understand Utah’s economic subtleties, seasonal trends, and potential challenges and opportunities. This local knowledge can be crucial in helping to craft financing and lending options tailored to the unique needs of the community, rather than being locked into a one-size-fits-all approach found at most national banks. Also, since your local bank’s executives live and work right here in Utah, they have a vested interest in fueling the local economy and fostering innovative Utah businesses.
2. Quick decision-making
Things in business move fast, and time is of the essence. Local community banks are well known for their ability to make loan decisions quickly. Unlike larger institutions where there can be a lot of bureaucracy, local banks can get you answers faster. First Utah Bank’s Vice Chairman Brad Baldwin says, “Very early on in the loan application process, we run the application right up the pole here in Utah, so that there are no surprises later.” He adds, “We don’t need to call out of state to California, or Seattle, or Cleveland to get a credit decision made. When we issue a term sheet on a loan and we say, ‘Here’s what we can do’, we honor that. We don’t change that along the way, because it doesn’t go through different layers of management and decision-makers.”
3. Personalized service and one-on-one attention
Almost every financial institution touts “personalized service”, and many strive to deliver it. Unfortunately, consolidation in the banking industry—along with the sheer size of their operations—have increased the physical and interpersonal distance between these institutions and their customers. As a community bank, First Utah Bank is 100% focused on serving the people of Utah. So when you walk through the door of one of our branches or talk by phone with one of our bankers, you’re not just another account number to us, you’re our neighbor. Since locally-owned banks are also managed locally, our loan officers are empowered to be more agile and able to implement custom-tailored solutions for customers.
Chris Mantas, CEO of Tear-A-Part Auto Recycling says banking with First Utah Bank has been instrumental to the success of his business. “Where I saw the biggest upside with First Utah compared to a lot of the bigger banks, is actually at the bank level, they understood my problem that the other banks didn’t have any resolution to. First Utah came in and solved the problem.”
4. More than just a bank, a partner in helping you grow your business
Many growing businesses don’t have finance departments or the staffing to stay ahead of financial planning for crucial opportunities. Your community bank’s loan officer can be a valuable member of your company’s finance team. Baldwin says, “As a community bank, we often say we like to ‘bank businesses on their way up’. Larger companies might have large staffs in their finance department, but a lot of small businesses just don’t have that resource, so we can fill that role.” This often means being proactive in helping you obtain working capital and anticipating your financing and banking needs as your business grows.
5. Banking locally contributes to your community’s economic prosperity
When you choose to work with a local bank, your money doesn’t sit in a vault in some far-off place. It’s put to work right here in Utah, nurturing local businesses like yours and helping them grow. Community banks are usually deeply invested in the well-being of the local area, supporting community development projects, local charities, and initiatives that enhance the community’s quality of life.
A few more questions you may have…
“What about the technology that large banks offer?”
Nowadays, many local banks are using the same cutting-edge technology as national banks – often delivered by the same technology providers. First Utah Bank delivers a whole suite of business technology solutions for businesses, including electronic payments, credit card processing, online business banking, wire transfers, fraud protection, etc.
“Will I outgrow my local, community bank?”
This is a very valid question. The answer is: “We hope so.”
While many small and medium-sized businesses find that local, community banks such as First Utah Bank can serve all their needs for the life of their businesses, if you find that your business needs to borrow tens or hundreds of millions of dollars you might need the support of additional banking resources. Your local banker can guide you when your business reaches that stage.
“Why choose First Utah Bank?”
When you choose First Utah Bank, you get more than just a banker or lender. It’s the start of a robust banking relationship where we support your needs while you grow your business. When other financial institutions say “no,” we pride ourselves in saying “Let’s explore what’s possible!” Come get to know us at First Utah Bank and learn what it’s like to work with a bank that takes a personal interest in you and your business.