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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="http://aexcfgllc.com" target="_blank">http://aexcfgllc.com</a>


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Article Added on Wednesday, July 7, 2010
LD
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