Recently, St. Louis Small Business Monthly reached out to us to provide advice for business owners seeking financing in 2024. Jeff Camilleri, President of Commercial and Mortgage Banking, took a moment to jot down his advice for business owners, how banks can help, and the outlook for 2024.
Here is what Jeff submitted as his answers to their questions about finding business capital.
Advice for Business Owners Seeking Financing in 2024:
As we brace for an intriguing 2024 marked by record interest rate hikes and economic uncertainties, adaptability is the linchpin for business success. Robust demand has enabled most businesses to absorb increased costs in supplies, labor, and other essentials. The question looms: how long can this resilience endure amidst evolving conditions?
In the unknown environment, business owners can consider a few potential cost-saving strategies, including:
- Leverage variable rate loans with the expectation of rate moderation in 2024
- Weigh the option of personal capital for expansions, reducing the reliance on conventional commercial borrowing
- Bolster supply chain resilience by diversifying vendors and suppliers
- Stay attuned to credit risks including slower receivables and supply interruptions – acknowledging industry-wide challenges with margins and cash flow
- Enhance flexibility by outsourcing non-FTE jobs to local contractors and specialized service providers
How Banks Can Assist Businesses Amid High Interest Rates:
Banks can play a crucial role in supporting businesses in 2024. To address the impact of changing interest rates, our bankers work to proactively assess the capital needs of our clients over an 18-month horizon, identifying potential operational challenges. With the economy slowing down, it's essential to pinpoint credit risks arising from extended receivable collection times.
Outlook for Gaining Financing in 2024:
As a well-capitalized community bank, CNB’s outlook for commercial financing in 2024 remains robust. We have seen some larger, national banks pull back on their willingness to lend catching some of their customers by surprise. This tightening opens opportunities for a community bank like ours to support local businesses, which is what we do best. Business owners who maintain a comprehensive understanding of their financial numbers, engage in open dialogue with their bankers, and remain vigilant to credit risks will be a step ahead when it comes to weathering any kind of economic storm.
Complete the information below to contact one of our experienced commercial lenders to plan for your capital needs in 2024 and beyond.
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