The home heating oil industry has a long and proud history, and Fuel Oil News has been there supporting it since 1935. It is an industry that has faced many challenges during that time. In its 77th year, Fuel Oil News is doing more than just holding
Issue link: https://read.dmtmag.com/i/342353
U.S. CompanieS TUrning To non-Bank LenderS for CrediT A notable share of U.S. small businesses and middle-market companies are obtaining credit from non-bank providers. The most troubling news for banks—and possibly for regulators: nine out of 10 companies that borrowed from these alternative lenders say they'll look to tap non-bank providers for credit again in the future. Greenwich Associates surveyed ap- proximately 125 companies for its latest "Greenwich Market Pulse, U.S. Companies Turning to Non-Bank Lenders for Credit." Of the companies that obtained credit over the past 18 months, one-quarter reported securing funds from non-bank provid- ers. These borrowers seem very satisfied with their experiences. In addition to the fact that 90% of them said they would use non-bank providers for credit again, 60% said the process of obtaining credit is easier through non-banks than it is through tra- ditional banks. Roughly a third of companies that ob- tained credit from non-banks said they did so at least in part because their traditional banks refused to lend, a finding that sug- gests some of the companies being supplied with credit by non-banks are firms that were unable to qualify for loans through traditional banking channels. But the bulk of the companies using non-bank lenders were attracted to these providers by terms, conditions, rates and pricing that simply were more attractive than those offered by traditional banks. Once they engaged with these providers, the companies were im- pressed with the experience. "Companies are saying that non-banks have a simpler application process, require less documentation and deliver much faster credit decisions," said Greenwich Associates consultant Duncan Banfield. The implementation of stricter capital reserve requirements and regulations like "know your customer" rules have made the process of applying for and making commercial loans more complicated and cumbersome for both banks and compa- nies alike according to Greenwich Associ- ates. To date, companies say that increased documentation requirements have not had much effect on their relationships with their banks. However, Greenwich Associ- ates projects that the burdens associated with these new requirements will eventu- ally have a negative impact on relationships between small/mid-sized companies and their banks. "Although non-bank finance companies have long been staples of corporate finance, Business OPeRATiOns N e w s On Thursday, June 19, the Columbia County Chamber of Commerce presented a special award to Kim Keil of Valley Energy. Members of the Columbia County Chamber Commerce and the readers of the Register-Star and Chatham Courier Newspapers voted Valley Energy as the "Best Fuel Oil/Propane Provider" in Columbia County. Chamber President David Colby said, "Valley Energy is remarkable local company that has earned a stellar reputation through exceptional pricing and customer service for their loyal customers." Standard Oil of Connecticut draws attention to the fight against Alzheimer. "we had the breast cancer awareness truck running last year and this year we launched the Alzheimer program, said Roy Friedman (pictured), president of standard Oil of Connecticut. This was the first licensed truck for Alzheimer's awareness." Friedman noted that is a continuation of similar efforts that include a breast cancer awareness truck, muscular dystrophy sponsorships and supporting organizations for abused women. "Alzheimer's is an awful disease and the 40-year-olds and 50-year-olds are starting to fall into that bracket," Friedman said. He noted that one problem with this type of support is customer expectations. "with breast cancer and Alzheimer's they want that specific truck to deliver to their house," he said. "That can get tricky, so we run the truck for a week in each area. People actually stop the truck and ask questions and we've trained our drivers on how to respond to inquiries." www.fueloilnews.com | fUeL oiL neWS | JULY 2014 23