One of the fallouts of the Great Recession was that the demand for – and the availability of – commercial lending drastically and quickly diminished.
As the economic recovery takes root, the demand for – and the supply of – commercial lending is returning.
An example of that supply and demand in action is The Custom Shoppe, a furniture manufacturer that employs about 50 people in Watertown.
During the fall of 2008, The Custom Shoppe needed to refinance an existing industrial revenue bond and establish a new line of credit with a bank.
The company’s existing bank indicated that it was not interested in refinancing the bond or extending new credit, said Frank Krejci, majority owner of The Custom Shoppe. Krejci also is president and chief operating officer of Strattec Security Corp.
“The previous bank talked a good game and historically said they wanted to be our partner,” Krejci said. “Business started slowing down, and we sort of weren’t partners any more.”
The Custom Shoppe was able to refinance its industrial revenue bond and obtain a new line of credit at West Bend-based Commerce State Bank. The Custom Shoppe has continued to use its line of credit and was pleased that the bank did not change its terms when its sales hit some rough patches during the recession, Krejci said.
“What I really appreciated was the fact that when our performance wasn’t what we originally expected, they weren’t beating us up,” Krejci said. “They were understanding. It was more of us sitting down and talking about how we can work together and get through it. They created what I believe is a fair structure to begin with, and they have certainly been very open-minded and supportive.”
Krejci was so happy with the banking relationship he entered at Commerce State Bank that he moved his personal banking accounts there, as well.
“If they’re going to be a good partner for me, I want to be a good partner for them,” he said.
