Take the better deal now. It does not mean that you cannot go to the small community bank later when other needs arise or it does not mean that PNC will not offer the same personal services down the road once you have a strong relatinship with them.
I personally am shocked that you got such a great deal from PNC - just surprising!
---Business Money Today - Small Business Loans
We've been offered two lines of credit at $50,000, both with an interest rate of about 5.5%.
One line is from a national bank (PNC): unsecured, no closing costs or processing fees, and $175 annual fee that is waiveable if we maintain a minimum deposit in our business checking account (which I think we'll be able to do)
The second line is from a small community bank here in the mid-Atlantic: secured (using our inventory), $500 closing fee, ~$100 UCC lien filing fee, $250 loan processing fee, and a $500 annual fee.
As for costs, clearly the PNC would save at least $1350 out of our pocket, and cash flow is important obviously. Also, since the PNC loan is unsecured, there is much less paperwork involved. But...the community bank is more personal, and they make decisions in-house. This may be beneficial down the line.
Does anyone have an opinion and/or experience on the pros and cons of loans and service a large national bank vs. community banks. Would it be worth it to pony up the extra money to go local? Also, are there benefits to a secured line that you don't get from an unsecured line? We're strongly leaning toward PNC, because of the cost savings, but are open to your sagacious advice.