With interest rates heading up, demand for small business loans is leveling off. To attract small business clients, banks are increasing the number of specialty products they offer, including everything from e-commerce consulting and Internet account access to concierge services (Connecticut-based Liberty Bank Offers to make travel arrangements for clients). At the same time, loans are being bundled with other financial services, such as payroll and health, life, and auto insurance - offered free or at a reduced cost, providing a de facto discount on the loan. Some banks even throw in free personal checking accounts for the business owner.
(Business Week, "Pricey Loans - with Perks," February 28, 2000)
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