Small and mid-sized businesses (SMBs) are the backbone of the U.S. economy, contributing nearly 44% of GDP. Yet, traditional business banking often fails to address their needs effectively. For facilitators—organizations enabling growth and success in their niche communities—this gap presents a significant opportunity to enhance services, strengthen relationships, and unlock new revenue streams by stepping into the role of trusted advisors and solution providers.
Who Are the Facilitators?
Facilitators are organizations that provide critical support to SMBs by connecting them with the tools, resources, and financial solutions they need to grow. These include various “one to many” organizations like member associations, franchisors, banks and credit unions, advisory firms, manufacturers, distributors, and media and publishing groups. Their deep industry knowledge enables them to address SMB challenges with impactful solutions.
Key Challenges in Business Banking Today
Lack of Personalized Engagement
Many SMBs experience transactional relationships with their banks rather than the advisory partnerships they need. Facilitators, who are already deeply embedded in their markets, can step up where traditional banks fall short, offering tailored insights and strategic financial guidance. Research shows that 62% of SMB owners believe their bankers lack a deep understanding of their operations, creating a critical opportunity for facilitators to deliver personalized solutions.
Rigid, One-Size-Fits-All Products
Traditional banking products often do not align with the unique and diverse needs of SMBs. Facilitators can differentiate themselves by offering flexible, customized financial solutions that address the specific challenges faced by SMBs.
Case in Point: A Michigan medical practice sought financing to expand its facility but was met with inflexible, high-rate loan options from traditional banks. A facilitator in the healthcare sector could have offered a creative solution—such as deferred payments or equipment leases—allowing the practice to grow without unnecessary financial strain.
Unlock tailored finance solutions with Vastly.
Focus on Deposits Over Lending
Many banks prioritize deposit gathering over lending, perceiving SMBs as high-risk borrowers. Facilitators, such as community banks and credit unions, have the advantage of understanding the risk profiles and growth potential within their markets and can step in with innovative third-party finance products to fill this gap and solidify their role as indispensable partners.
The $1 Trillion Opportunity
Supporting Business Transitions
Nearly 10 million businesses are expected to change ownership over the next decade as Baby Boomers retire. Facilitators can position themselves as critical advisors during these transitions, offering solutions such as acquisition financing, working capital, and operational support.
Example: A small construction company in Ohio faced challenges securing funding for a generational transfer. A facilitator offering construction financing could structure a hybrid package—including seller financing and working capital—enabling the business to thrive under new ownership.
Unlock tailored finance solutions with Vastly.
Customized Solutions for Diverse Needs
Facilitators who transition from offering standard services to providing financial products will not only enhance loyalty but also expand their influence within their markets. Examples include:
- Revenue-based financing for seasonal businesses.
- Deferred payment options for equipment purchases.
- Creative real estate financing for owner-occupied properties.
These solutions directly address the pain points SMBs face, making Facilitators indispensable partners in their growth journeys.
Proactive Use of Data
Facilitators can leverage data within their ecosystems to anticipate client needs, such as cash flow challenges or growth opportunities. By offering timely solutions, they build trust and strengthen long-term relationships.
The Rise of Embedded Finance Solutions
The dissatisfaction with traditional banks has created a surge in demand for alternative financing options. Facilitators, with their deep reach into their SMB communities, are uniquely positioned to offer finance solutions, delivering fast, flexible, and tailored financing options.
Case Study: A Pennsylvania trucking company was denied a working capital line by its traditional bank. A Facilitator in the logistics sector could have offered a quick-turnaround financing solution, enabling the company to purchase new trucks and meet growing demand.
Unlock tailored finance solutions with Vastly.
Seizing the Opportunity Ahead
Facilitators serving SMBs have a unique opportunity to capture a share of the $1 trillion SMB banking gap by:
- Provide Tailored Solutions: Offer financial products that align with the unique needs of SMBs in your ecosystem.
- Investing in Expertise: Engage partners like Vastly to bring financial products to your community.
- Leveraging Data: Use insights to anticipate client needs and deliver proactive solutions.
With entrepreneurship at a 15-year high, facilitators who prioritize tailored engagement, flexible solutions, and proactive relationship management will position themselves as indispensable allies in SMB success.
Vastly empowers facilitators with tailored finance solutions designed to meet the diverse needs of their niche markets. Schedule a call to explore how we can help you drive growth in your market.
Source: “Why Business Banking Misses the Mark”, Small Business Finance Insights (Jan 01, 2025)
