Demystifying Lending: Unveiling Opportunities for Economic Growth (Sponsored Content)

Mick Nitsch, Missouri Regional President, Regent Bank

Small businesses are the backbone of our economy, driving job creation and innovation. However, securing funding remains one of the most significant challenges they face. The reasons for this are multifaceted, ranging from stringent credit requirements to the sheer complexity of the lending process. It’s essential for business owners to understand the various financing options available to them, including traditional loans, SBA loans, and alternative financing solutions.

 Missouri Regional President of Regent Bank, Mick Nitsch underscores the need for a cadre of loan offerings by acknowledging that a one-size-fits-all solution is just not possible nor is it advantageous for the business owner.

“The reason that there are different ways to go with all of these products is because the terms and the conditions for which these loans are granted vary depending on whether it’s a conventional commercial loan or whether it is a US small business administration backed loan,” Nitsch explains. “There are variances between the programs. Sometimes it benefits the small business owner simply to go one direction or the other depending on their financial capacity and the growth of the business that they’re involved in.”

Despite the vast and complex nature of available funding options out there, the process of matching the right business plan with the appropriate financing needn’t be overly complicated with the help of a seasoned banker.

“As an SBA Preferred Lender and a financial institution with a diverse portfolio of conventional loans, Regent Bank can streamline the loan approval process, making it more efficient and less daunting for business owners,” Nitsch explains.

The Value of SBA Loans
“SBA loans can be particularly valuable for small businesses because they offer longer repayment terms and lower down payments compared to conventional loans. This can be a game-changer for businesses that need to preserve cash flow for day-to-day operations.”

“SBA loans often provide longer repayment terms and lower down payments compared to conventional loans, easing the financial burden on businesses and facilitating sustainable growth,” Nitsch says. “Moreover, SBA loans come with the backing of the U.S. Small Business Administration, which can provide reassurance to both lenders and borrowers. This backing allows banks like ours to offer more favorable terms to businesses that might not qualify for traditional loans.”

Another pervasive myth surrounding SBA lending pertains to its perceived complexity and protracted approval process. However, Nitsch dispels this notion, asserting, “Partnering with an experienced lender can streamline the process and expedite approvals. As a preferred lender for SBA we’re able to make decisions internally without going to SBA for answers or approvals on loan application requests. Typically, a loan application takes about 30 days to complete, whether it’s a conventional commercial loan request or whether it’s an SBA request.”

Role of Conventional Lending
“In response to an extremely diverse marketplace in Springfield, Regent makes loans to all industries for all different types of commercial loan programs,” Nitsch says. “Everything from hospitality to medical to agricultural and all the various industries in between. We don’t have a specific heat lamp strategy that we turn off a particular industry because we don’t feel comfortable with it.”

Nitsch explained there continues to be great need for all types of conventional lending that include commercial real estate transactions and commercial and industrial loans for things like accounts receivable financing and equipment and inventory financing.

“My advice is leveraging the expertise of a seasoned lender familiar with all types of loan programs. This can prove instrumental in securing favorable financing terms and expediting the loan application process,” Nitsch says. “At Regent, we take pride in our commitment to guiding entrepreneurs and business owners through every step of the lending journey, demystifying the process and empowering them to thrive.”

This content is brought to you by Regent Bank.