What is the difference between a local bank and a national bank? Who better to ask than local bank co-president, Jeff Sumpter of Lewis and Clark Bank.
Jeff Sumpter and Trey Maust are founders and co-presidents Lewis and Clark Bank in Oregon. Jeff was listed as a member of the 40 under 40 by Portland Business Journal in 2009 and mentioned in Simon Sinek’s best seller, “Start with Why”.
If you invest in smaller properties with less than four units, you most likely deal with residential lending. Have you borrowed money from a bank for a smaller property recently?
In the name of consumer protection, Dodd-Frank Wall Street Reform and Consumer Protection Act, has made the borrowing process an unrecognizable blur of online electronic signatures compared to pre 2008.
Commercial lending is different.
What makes a local bank different?
Compared to consumer lending, working to get a commercial loan from a local bank feels like getting a cup of coffee with a friend. Local banks are members of the community they are located in. They specialize in local. Their niche is based on the need of the community the are in. This gives smaller banks the opportunity to deal with customers one on one.
You can meet in person and spend the time it takes to gain mutual understanding, build trust and answer questions the bank has. If everything makes sense, the loan application is presented to the loan committee and the approval or denial is made!
Jeff and Trey started with a plan for how they wanted to treat customers and their employees, recognizing the value of the relationship.
Community banks know the asset they lend against and typically keep and service their loans.
For more go to: Lewisandclarkbank.com