- Zombie Banks that do not have enough capital to support routine small business financing
- Banks that are pursuing what they believe to be more profitable ventures (which are usually more risky)
In the face of bank obstacles like these, small business owners will increasingly need to fire their bank, some of which are Zombie Banks and others which are not really lending to small businesses. For example, it was reported today by the Washington Post that a number of major banks are actively providing "payday loans" which have an annualized rate of interest up to 300% (yes, you read that correctly: 300%). Isn't it interesting that these banks have enough capital to make loans like these while saying no to most small businesses?