Three months ago, a client of GeeGoals, a seasoned entrepreneur with a history of successfully securing SBA loans, received a pre-approval email for $3 million from an online lender. His excitement was palpable—he had already started planning his next revenue milestone and visualizing how to spend the money.
However, as his Strategic Banking Ally, our role is to guide him through the process and make it as easy as possible. We explained to him that is impossible to be pre-approved for a business loan of $3M with no financial documentation unless he was related to the president of the lending company, which it was not the case.
On this occasion particularly, our company decided to step back from communicating with the lender directly due to the established relationship between our client and this lender but, we were asked to handle the documentation process from day one.
This particular lender which we won't mention in this post but happens to be a publicly traded company, though successful in securing his previous loans, operates entirely online with satellite locations across the country or zero local representatives to interact with. In order words; Transactional to the core.
Their goal is simple: to close deals. Unfortunately, this often leads to what I consider misleading financial marketing tactics. Despite his enthusiasm, the application process quickly became a nightmare—more than 100 emails exchanged, redundant document submissions, and countless explanations about how his business operates. The lack of understanding of his simple small business model, which involves selling goods on platforms like Amazon Marketplace and Shopify, coming from the Credit Risk department only added to the frustration.
One of the most frustrating parts of dealing with online lenders is what we call the "DRIP request" tactic. Rather than asking for all necessary documents upfront, they trickle requests over time, dragging out the process and leaving you wondering if the effort is worth it. Our client faced delays, lost in the process sometimes, repeated explanations to multiple representatives, and an overall lack of professionalism that was shocking, to say the least.
After three grueling months, we finally secured the funds. But it was a hard-won victory that left my client questioning whether the process was worth the time and energy. His experience left him believing that if this online bank struggled to understand his business, local banks would have been even worse. However, this is far from reality.
Local banks, particularly those with SBA officers, provide a more personalized approach. Before even applying, you can have in-depth conversations about your financial situation, including the use of funds, financial statements, and debt obligations. In the event that we are hired as a Strategic Banking Ally, we often run a Debt Service Coverage Ratio (DSCR) analysis to ensure we aren’t wasting time and that the loan is viable for the Small business owner and our banking partners.
A local banker part of the GeeGoals network would have provided a clear timeline, a comprehensive list of initial documentation, and—most importantly—consistent communication from start to finish. This could have saved our client from unnecessary frustration and potentially reduced closing costs and interest rates.
Speed is often marketed as a key advantage of online lenders, but it doesn't always translate into reality.
Local banks offer not just better rates, but also an enhanced lending experience and opportunities for additional revenue streams. If you add on top of it the possibility of working with one that understands your Industry you have found a real Partner in your financial journey.
For small business owners who rely solely on their grit and determination without connections or financial backing establishing strong relationships with local bankers is key to improving your banking and lending experience.
If you don’t have these connections yet, our soon-to-launch platform will allow you to connect with the best bankers in your area, tailored to your industry and location. It is designed for entrepreneurs who came from 0 or have built their business from the ground up. Or, you can hire a Strategic Banking Ally to help you become “bankable”—so financially attractive that banks compete to do business with you.
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