Main Street vs. Wall Street by Kevin Kelly
…
Fees are only one part of the problem. Several owners I spoke to talked about how difficult it has been to get loans, or how restrictive loan covenants had become. “My bank won’t even talk to me,” confessed the owner of one local eatery who had received a Small Business Administration loan nearly two years ago that financed an upgrade and expansion of his kitchen.
…
As for my relationship with Wells Fargo, it endures. Our line of credit comes up in six months, and I’m expecting the bank to try to boost our interest rate, especially given how much it has complained about how it’s too low. Where we once bundled many of our services through Wells Fargo—including our corporate, commercial, and equipment lending and our 401(k) plan, a policy the bank encouraged to deepen our ties—we’re looking to back out of some pieces…
Good idea, big banks have shown over and over again they take pride in consistently raising fees, reducing service and treating customers as though they are a bother. It is annoying that the big banks are constantly buying out the little banks to eliminate competition (and that regulators allow this is a sad commentary on our disrespect for the principles of capitalism) but when that happens move your banking needs to a small bank and you will be much better off in the long run.
Choosing to deal with big banks is bad idea. They have provided lousy service for quite some time. Obviously they do not chose to provide value to customers.
Related: Small Business Profit and Cash Flow – Smaller Companies Grab Bigger Share of Surging USA Exports – Congress Eases Bank Laws – 1999 – FDIC Study of Bank Overdraft Fees
Leave a Reply