Free Articles  >>  Business And Finance >>  Page 2486  >> 

Solutions for the Commercial Loans Puzzle

The practical rationale for using a puzzle analogy in this article is to help describe an otherwise complex working capital and commercial financing situation in a more understandable way. The current commercial loan stakes for commercial borrowers could not be higher because their business survival might be hanging in the balance, and the comparison of small business financing to a puzzle is not meant to diminish the critical importance of success by business owners when they encounter difficulties with commercial lenders.

This analogy provides an invitation to evaluate the commercial loans puzzle represented by commercial lending challenges as something that tests the ingenuity of solutions by small businesses. When reviewing the current small business finance environment, an increasing number of commercial borrowers are comparing what they are finding to a puzzle with pieces scattered everywhere. A reasonable reflection of the underlying problems that cannot be ignored by a prudent business borrower is provided by the ongoing descriptions of commercial financing in terms of solving a puzzle. Such an analogy no doubt also reflects the growing confusion represented in small business owner interactions with their current bank concerning available business financing options.

Recent experiences by many commercial borrowers with their business banker probably resemble a constantly changing level of difficulty for an already confusing small business finance puzzle. Banks have recently been taking over two months for a working capital financing process that should realistically be completed in under one month, and even when taking this excessive period of time it has become a common experience for many banks to fail in providing the expected business capital without providing any warning that funding has been delayed or disapproved. Suggestions that commercial lenders have misrepresented what is required to finalize commercial loans are emerging in too many reports for borrowers to ignore.

Most business financing has been more complicated than borrowers realize for a number of years. Recent events have made these complexities more obvious primarily because the eventual results have changed so drastically. It is situations like those noted above that cause business borrowers to feel like some of the required puzzle pieces have been removed from the board. In effect that is exactly what has happened in many cases because fewer banks are now providing small business financing. When this happens with the bank that a business has previously relied upon for their small business finance needs, a business owner is indeed likely to feel as if the commercial finance puzzle pieces have disappeared.

There are at least two practical options for commercial borrowers to consider and analyze, and these can be described accurately by continuing the puzzle analogy. First, business owners should assess the potential for reducing their commercial debt requirements, an approach which can lead to a small business finance puzzle which will involve "fewer pieces" if executed successfully. Second, by looking for alternative commercial lending sources, small businesses should attempt to find the "missing pieces". As with any complex business financing situation, both of these (as well as any other realistic commercial loan choices) should be thoroughly reviewed with the help of an experienced expert.

About Author Stephen Bush :

Stephen Bush and AEX Commercial Financing Group provide help for small business finance programs and working capital loans: <a href="" target="_blank"></a>

Article Source:
Article Url:

Article Added on Wednesday, July 7, 2010
Other Articles by Stephen Bush

Commercial Hard Money Loans Three Business Scenarios
The primary rationale for a business considering a commercial hard money loan is that traditional commercial financing options are not viable. There are three financing options for most commercial real estate scenarios: traditional banks, intermediate lenders and hard money lenders. In those situations where traditional banks and intermediate lenders both say NO, it then makes good business sense to explore under what terms a hard money commercial loan might be available. Many viable business...

Business Loan Strategies Why Do Some Banks Say Yes When They Mean No
Many banks are so conscious of their reputation in the local community that they don't want to be known for refusing business loan requests by respected community residents. One alternative that many of these banks have adopted is the art of never saying no in such commercial financing situations. What they do instead is to attach onerous conditions when they say yes. In most cases the bank doesn't expect the commercial borrower to accept the conditions, and therefore the bank has avoided...

Commercial Real Estate Loans Might Need Intensive Care
While business financing patients (commercial borrowers) might be in serious condition when they find that their bank will not provide needed commercial real estate loans, experienced small business finance specialists can frequently help in restoring financial health that will facilitate a business getting out of an intensive care situation. In some cases this involves finding a healthy bank that is willing (and able) to provide normal commercial mortgages, but it will probably be necessary to...

Commercial Financing For Special Purpose Business Properties
Funeral homes, assisted living facilities, campgrounds and other special purpose properties represent one of the most difficult commercial loan situations which will be confronted by a business owner. Unique properties are not easily understood by traditional lenders, so the most common solution involves finding a non-traditional lender for funeral home financing as well as commercial financing for other special purpose properties. Such non-traditional lenders will be appropriate for purchase...

Six Solutions For Church Financing Difficulties
Churches require a very specialized type of commercial real estate financing. Churches are certainly not a “typical” business or small business, but churches nevertheless have very real and substantial financing needs. Before addressing possible solutions for the most common church financing needs, it is important to discuss the typical barriers to obtaining church loans. Historically church financing has been difficult to arrange for several reasons: (1) Church properties are unique....

Commercial Loans Are We All in This Together
? In the Working Capital Journal and elsewhere, there have been many reports so far indicating that only a small number of financial companies appear to be acting as if they truly understand that We're all in this together. A special concern by many observers is that the largest banks (essentially those receiving federal funds recently to assist with their troubled financial operations) are not acting in this manner at all. This has resulted in two major problems for commercial borrowers: (1)...

Misinformation and Confusion about Business Cash Advances
The actual availability of commercial financing for business finance programs such as business cash advances and commercial mortgages is unclear to most commercial borrowers throughout the United States. The confusion about working capital financing and commercial loans seems to be increasing despite efforts by the federal government and commercial lenders to suggest that there is ample commercial funding. It seems apparent that there have been many reports suggesting that normal commercial...

Construction Loans and Commercial Loans
Many business financing experts continue to project that the rapidly-changing environment for commercial financing and working capital loans will involve a series of new but avoidable problems for business owners. These new challenges are increasingly evident with commercial mortgage loans, particularly those involving commercial construction financing. There have always been complex problems for business owners to avoid when seeking commercial loans. By most accounts, these difficulties are...

Commercial Loans and Small Business Financing What to Avoid
The combination of factors noted below can have dire financial results for commercial real estate loans and small business loans. Business owners should be prepared for these real possibilities. It is always advisable to have an advance understanding of what can go wrong with working capital financing and commercial loans. The worst case scenario for small business loans and commercial real estate loans is not a situation that most people should want to experience. There are several elements...

A Bumpy Ride for Working Capital Financing
In spite of the frustrating and confusing business financing environment, a prudent commercial loans strategy is likely to produce the most effective results that can be hoped for by small business owners. With business loans and working capital financing, commercial borrowers need to be prepared for a long and bumpy ride. Based on how chaotic the commercial banking climate is currently, this situation is expected to prevail for a long (but unpredictable) period of time. Finding appropriate...

Click here to see More Articles by Stephen Bush
Publishers / Webmasters
Article ID: 244547
DELINK URL from Authors Bio
REMOVE Article
Tell A Friend
Leave A Comment!
Download this article in PDF
Report Article!
Search through all the articles:

111 Users Online !
Related Articles:
Latest Articles:
Business And Finance >> Top 50 Articles on Business And Finance
Category - >
Advertising Advice Affiliate Programs Automobiles
Be Your Own Mentor Careers Communication Consumers
CopyWriting Crime Domain Names DoT com Entrepreneur Corner
Ebooks Ecommerce Education Email
Entertainment Environment Family Finance And Business
Food & Drink Gardening Health & Fitness Hobbies
Home Business Home Improvement Humour House Holds
Internet And Computers Kiddos and Teens Legal Matters Mail Order
Management Marketing Marriage MetaPhysical
Motivational MultiMedia Multi Level Marketing NewsLetters
Pets Psychology Religion Parenting
Politics Sales Science Search Engine Optimization
Site Promotion Sports Technology Travel
Web Development Web Hosting WeightLoss Women's Corner
Writing Miscellaneous Articles Real Estate Arts And Crafts

Disclaimer: The information presented and opinions expressed in the articles are those of the authors
and do not necessarily represent the views of and/or its owners.

Copyright © AwareINDIA. All rights reserved || Privacy Policy || Terms Of Use || Author Guidelines || Free Articles
FAQs Link To Us || Submit An Article || Free Downloads|| Contact Us || Site Map  || Advertise with Us ||
Click here for Special webhosting packages for visitors of this website only!
Vastu Shastra

Multi Domain Hosting Provided By AwareIndia

Company IDS