Where Credit Is Due: Perception may not match reality of capital availability

Business leaders responding to Springfield Business Journal’s Economic Growth Series annual survey report that credit is harder to access now compared to a year ago.

That’s the perception of 51.5% of 2025 respondents, up from 23% last year.

The response was marked departure from five years ago, with only 3% of those surveyed in 2020 believing credit was harder to access than the year before.

Their belief may not reflect the lending industry reality, according to Missouri Bankers Association President and CEO Jackson Hataway.

Hataway says there hasn’t been any significant tightening of credit standards in Missouri.

“Businesses have plenty of access to banks, and banks have capital to deploy,” he says.

He acknowledged that liquidity is tight for some banks, meaning they need to get more capital before lending.

Additionally, some financial institutions have been in a wait-and-see mode for the last year as they see how federal interest rates play out. Hataway anticipates one or two more rate cuts from the Federal Reserve this year.

Some business leaders may be waiting for the sorts of low rates they experienced in previous years, and those may not be coming back. It would be remarkable, Hataway says, for the rate environment to drop to the level people enjoyed four or five years ago.

“Businesses may be expecting something different than the rate environment can support right now,” he says.

Further, there is a sense of uncertainty nationally, with an ever-changing tariff landscape and the implications, yet to be seen, from the recently passed federal spending bill.

“It’s hard to put your finger on one particular reason people feel a certain way,” Hataway says. “A lot of this boils down to everyone feeling some sense of uncertainty about how the economy is going to evolve over the next six months.”

Casey Pyle, market executive and senior vice president of Phelps County Bank, agrees with Hataway that there is credit to be had.

“There is still a lot of credit out there,” he says. “It may require more shopping, and maybe you don’t get your first bank choice, but if you look long enough, there’s still an appetite for credit. You just have to find the bank that fits the niche of what you’re requesting.”

Pyle figures the reason for the perception that credit is harder to access is psychological. Like Hataway, he feels borrowers aren’t comfortable with higher rates that are persisting.

“They became comfortable with rates in the 4% range, and now rates above 7% are more common,” he says. “That makes it harder to pencil out an expansion or make a real estate purchase.”

Banks may require more equity or downpayment than they once did, Pyle notes, and the terms may not be as desirable to borrowers as they remember from the past. Higher interest rates may be the new normal, Pyle said.

But locally, banks are not seeing a gloom-and-doom scenario, even though tariff and inflation talk dominates national attention.

“We’re insulated in the Midwest from the highs and lows of the coasts,” he says. “Office space, for example, is still pretty much a big no-no nationally, but office is OK here.”

Pyle says Phelps County Bank, based in Rolla, is focused on local deposits and lending.

“All of our lending happens within 70 miles of our office,” he says.

He suggests businesses pay close attention when their banker gives them a roadmap to qualify for a loan.

“Have the perseverance and patience to follow that roadmap to qualify, whether that’s restructuring your debt or essentially budgeting what you can afford,” he says. “Take the time. Be patient.”

Sometimes a loan request is a no today but could be a yes tomorrow, he says.

“If you think you can get to yes, come back again,” he says.

Predicting the future
John Maupin, OMB Bank’s chief lending officer, says there are a lot of things borrowers can’t control. The COVID-19 pandemic was one example.

“What borrowers need to focus on is what they can control to make the decisions that a banker is going to make about your business and your future easier,” he says.

Banks are always working off old information – lagging indicators, Maupin says. Borrowers can help them to feel confident by having all of their ducks in a row, with an up-to-date business plan and financial statements at the ready.

“What a bank is doing is looking at past information and trying to predict the future,” he says. “They’re making a bet on you – they’re becoming a business partner with you – and you need to take as many variables out of the equation as possible.”

Maupin also suggests finding the right-sized lender. He noted Johnny Morris, owner of Bass Pro Shops, probably will not come to OMB Bank to do business.

“If he did, we’d be flattered,” he says, but notes a business like Bass Pro or O’Reilly Automotive will probably opt for a large institution.

But a business should try to match its own size with the size and culture of the lending institution.

“Every bank has a different culture,” Maupin says. “Different banks like different kinds of loans. It could be that particular customer isn’t the best fit.”

Maupin says some banks tend to pull back the reins during uncertain times, but some don’t.

“It doesn’t hurt to explore your options,” he says.

Maupin suggests businesses build a relationship with their banker while focusing on the factors they can control.

“There’s not a lot we can do in Springfield, Missouri, to control what happens in Washington, D.C.,” he says

Approaches to accessing capital
Some business owners make do without accessing credit, even when they don’t bring a lot of wealth to the table. They do this by scaling back business plans and using resources at hand.

Madeline McKinley opened a bridal shop – her first-ever business venture – in Marshfield in December 2024.

McKinley’s shop, Elizabeth Elwood Bridal LLC, offers a private bridal boutique experience in a setting where they can try on designer gowns while surrounded only by friends and family.

It’s a special time for brides-to-be, McKinley says, and some travel several hours for the personal experience.

McKinley’s original business plan was different, she says. While now she focuses on having designer gowns for brides on any budget, her starting model included bridesmaid and mother-of-the-bride dresses, as well as prom and homecoming.

“We had trouble locating brick-and-mortar that we felt went hand-in-hand with our business model,” she says. “When we found our current location in Marshfield, we realized we couldn’t carry all of those things right out front.”

McKinley used her personal savings for most of her startup costs, which she declined to disclose. It was a route made easier by a scaled-down facility in a location with low overhead. She also used her personal line of credit.

“Was that a smart thing to do? I don’t know. I’m a first-time business owner, and I did what I thought was right,” she says.

In the future, the business may expand to match that original model. Then, McKinley says, it may be time to consult a banker.

Andrew Gammill, owner of Hollister flight school Yell Aviation LLC, faced startup costs of $150,000 for his business, which opened in the Branson Jet Center in October 2024.

Gammill said he and his silent partner found the credit process fairly easy.

“We both have already been established in the business world, which made it a little easier when we went to the bank,” he says.

Gammill says the biggest hoops he went through weren’t with credit; they were with the Federal Aviation Administration and the Department of Transportation. But those processes, too, went smoothly, he says.

Yell Aviation used Table Rock Community Bank, and Gammill says bankers were kind and helpful.

“What I would encourage people to do is be bold enough just to try,” he says. “I think for a long time I told myself that I wasn’t able to do it until I actually did it, and I was well surprised.”

He adds that the local bank was eager to invest in the community, and that’s important for communities to thrive. Understanding that makes it easier to seek credit, he says.

He adds that people with a passion should take the leap, regardless of a perception that doing so will be hard.

“You have to be bold enough to trust yourself and the vision and dreams that you’ve wanted to do,” he says. “Take a step of faith.”