The concept of "commercial financing without banks" has recently assumed a critically important role for small businesses unable to obtain bank financing. The process of replacing a bank is rarely an option which is openly pursued by a small business. However, an astute business owner will quickly realize that they have little recourse but to pursue such a path when their bank says "no" to routine requests for small business financing. Even though this search for new commercial finance choices is undertaken under protest by most commercial borrowers, improvements to the overall financial health of a business will be achieved in a pleasantly surprising number of cases.
There are two financing situations that businesses should especially be prepared for banks saying "no". One of these involves commercial real estate financing and the other working capital (including commercial lines of credit). While a small number of banks are still proving to be reliable sources for some small business financing options, recent nationwide commercial banking reports clearly show a drastic reduction in business loans for commercial mortgage loans and working capital loans.
A prudent starting point for commercial borrowers is likely to be an extended discussion with a business loans expert for helping to adequately evaluate how to get working capital loans and other business financing when their bank says "no". Finding and selecting such an expert will not be a quick or easy task for business owners, but this step is likely to be critical to eventual success in formulating a strategy for obtaining new sources of small business funding. One aspect that should not be overlooked in locating a viable expert to help is to ensure that the selected business finance expert is totally independent and not affiliated in any way whatsoever with the bank which has already said "no".
Even for businesses which are both long-term and profitable customers, banks are routinely saying "no". It has become common to hear phrases such as "commercial financing without banks" and "thinking outside the bank" when talking about strategies small business owners need to consider because this has become such a widespread commercial lending problem. Banks are currently saying "no" more frequently than they have in decades. Small business owners are increasingly hearing their bank say "no" to requests for needed commercial financing and working capital. Most commercial borrowers are unsure what to do next because this represents uncharted waters for them. While a bank saying "no" is not a result that any business owner would seek, in many circumstances it can eventually lead to an overall improvement in small business finance choices. When small business owners have literally been forced to find new commercial finance alternatives, they are often pleased to discover that they can not only replace existing bank financing satisfactorily but also improve their bottom line in the transition.Stephen Bush is a reliable source of working capital loans and is CEO of AEX Commercial Financing Group ( http://aexllc.com ). He furnishes commercial real estate loans and business financing services throughout the U.S. Steve has offered candid advice to business borrowers for 30 years.
There are two financing situations that businesses should especially be prepared for banks saying "no". One of these involves commercial real estate financing and the other working capital (including commercial lines of credit). While a small number of banks are still proving to be reliable sources for some small business financing options, recent nationwide commercial banking reports clearly show a drastic reduction in business loans for commercial mortgage loans and working capital loans.
A prudent starting point for commercial borrowers is likely to be an extended discussion with a business loans expert for helping to adequately evaluate how to get working capital loans and other business financing when their bank says "no". Finding and selecting such an expert will not be a quick or easy task for business owners, but this step is likely to be critical to eventual success in formulating a strategy for obtaining new sources of small business funding. One aspect that should not be overlooked in locating a viable expert to help is to ensure that the selected business finance expert is totally independent and not affiliated in any way whatsoever with the bank which has already said "no".
Even for businesses which are both long-term and profitable customers, banks are routinely saying "no". It has become common to hear phrases such as "commercial financing without banks" and "thinking outside the bank" when talking about strategies small business owners need to consider because this has become such a widespread commercial lending problem. Banks are currently saying "no" more frequently than they have in decades. Small business owners are increasingly hearing their bank say "no" to requests for needed commercial financing and working capital. Most commercial borrowers are unsure what to do next because this represents uncharted waters for them. While a bank saying "no" is not a result that any business owner would seek, in many circumstances it can eventually lead to an overall improvement in small business finance choices. When small business owners have literally been forced to find new commercial finance alternatives, they are often pleased to discover that they can not only replace existing bank financing satisfactorily but also improve their bottom line in the transition.Stephen Bush is a reliable source of working capital loans and is CEO of AEX Commercial Financing Group ( http://aexllc.com ). He furnishes commercial real estate loans and business financing services throughout the U.S. Steve has offered candid advice to business borrowers for 30 years.
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