Glendale Federal Bank is using an unusual tactic to get entrepreneurs' attention-it's offering free use of a temporary worker to businesses that open credit lines.
"Our goal is to distinguish ourselves from our peers and convey that we care about the whole picture of building a business," said Robert Phillipps, Glendale's senior vice president of community business banking.
Glendale Federal's promotion is another sign of the ultra-competitive small-business banking market in California, where the thrift competes with Wells Fargo & Co. and BankAmerica Corp.
Mr. Phillipps said a gift certificate for the use of a free temporary employee is available to businesses that open credit lines from $10,000 to $100,000 before Nov. 26.
As part of the promotion, Glendale Federal will waive its typical $125 application fee on the lines, which have an interest rate of prime plus 2%.
The temporary employees are provided through an arrangement with AppleOne, an employment agency that wants to expand by working with small- business owners.
"Business owners need money to build their business, and everyone could use someone to assist them," Mr. Phillipps said.
He said he is pleased by the initial response, but neither Glendale Federal nor AppleOne would say how many new customers they expect.
David Bartram, senior vice president at Bank of Commerce in San Diego, said he thought the promotion was unique but he didn't expect it to sway many customers.
"I'm not sure how many clients would see that as a reason to use Glenfed," Mr. Bartram said."Our clients would rather have reduced fees, reduced rates, or a faster response."
Glendale's offer is hardly the first creative small-business marketing campaign in California. Earlier this year, BankAmerica offered $25,000 to the small-business owner who wrote the best essay about why he needed the money.
BankAmerica received 150 entries in the essay contest, which was open to California entrepreneurs with a new or existing business loan from the bank.
But Ronald D. Reinartz, Bank of Santa Clara's vice chairman, president, and chief executive officer, said his customers prefer personal service to creative marketing campaigns.
"Our customers can talk to a real person each time they call us, and we can handle all their needs-that's a whole lot more important," Mr. Reinartz said.
