Commercial Lending Officer and Small Business Client Relationships Available to Purchase

This article presents the results of an April 1986 mail survey of small business firms in Cuyahoga County, Ohio, concerning the relationship with their commercial bank lending officer. The survey examined loan types and rates, types of collateral,and bank and officer characteristics. Results indicate that 1) secured lines of credit were the most common loan type, 2) the reputation of the bank was the most important characteristic, 3) personal guarantees were the most common collateral type, and forty small businesses rely heavily upon the expertise and support of their commercial lending officers the businesses would seldom change banks for a half percent rate advantage.