Posts Tagged ‘Business Owners’
Motel And Hotel Commercial Loans – Great Options
Karen Benjamin asked:
rking 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. Two major problems are becoming more obvious for business borrowers as a result: (1) Even though the funds have supposedly been provided to do just, banks receiving bailout funds have failed to resume a normal lending pattern for commercial finance funding. These same banks also seem to be unable to report to anyone how they are in fact spending billions of dollars. (2) Many banks are decreasing their commercial loans and commercial real estate loans by recalling outstanding loans or cancelling business lines of credit. There has already been much public backlash in reaction to inappropriate banking bonuses and spending. So far that has primarily taken the form of criticism and questions about how banks are allocating the financial resources largely subsidized by the taxpayers providing bailout funding. As it becomes more obvious that the action of many banks is impeding the recovery from economic chaos, it is likely that most business owners will choose to obtain their business finance funding from a lending source that has helped rather than hindered financial recovery efforts. As always, business owners cannot typically afford to wait for government and external action to resolve problems like those described above. Given the facts that many banks have exited or reduced commercial lending activities, business owners should attempt to find alternative sources for working capital loans and commercial loans. With appropriate help from a commercial financing expert, commercial borrowers will be able to identify which commercial lenders have been acting like responsible corporate citizens and business neighbors. It is unfortunately common to find that most bigger banks have eliminated new working capital financing and commercial mortgage loans. Although they are proving to somewhat difficult to identify and locate, there are commercial lenders actively making new commercial loans. In addition to the larger banks reducing most lending programs, another difficult commercial financing situation is that very few of the smaller local banks have resumed prior business loan activities. A previously familiar and reliable source for working capital loans might not continue to be a viable business funding choice. For the most part, local and regional banks simply do not have sufficient capital for new commercial loans. In addition to business owners seeking alternative commercial funding sources, many commercial borrowers will now discover new financing choices such as business cash advance programs. Under most circumstances, business cash advances are provided by business lenders other than commercial banks. Such a working capital funding source might increasingly prove to be more reliable than traditional banks of any size in providing commercial financing effectively. By looking for lenders displaying an appropriate attitude of “We`re all in this together”, business owners should hopefully find that their business financing circumstances will improve.
rking 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. Two major problems are becoming more obvious for business borrowers as a result: (1) Even though the funds have supposedly been provided to do just, banks receiving bailout funds have failed to resume a normal lending pattern for commercial finance funding. These same banks also seem to be unable to report to anyone how they are in fact spending billions of dollars. (2) Many banks are decreasing their commercial loans and commercial real estate loans by recalling outstanding loans or cancelling business lines of credit. There has already been much public backlash in reaction to inappropriate banking bonuses and spending. So far that has primarily taken the form of criticism and questions about how banks are allocating the financial resources largely subsidized by the taxpayers providing bailout funding. As it becomes more obvious that the action of many banks is impeding the recovery from economic chaos, it is likely that most business owners will choose to obtain their business finance funding from a lending source that has helped rather than hindered financial recovery efforts. As always, business owners cannot typically afford to wait for government and external action to resolve problems like those described above. Given the facts that many banks have exited or reduced commercial lending activities, business owners should attempt to find alternative sources for working capital loans and commercial loans. With appropriate help from a commercial financing expert, commercial borrowers will be able to identify which commercial lenders have been acting like responsible corporate citizens and business neighbors. It is unfortunately common to find that most bigger banks have eliminated new working capital financing and commercial mortgage loans. Although they are proving to somewhat difficult to identify and locate, there are commercial lenders actively making new commercial loans. In addition to the larger banks reducing most lending programs, another difficult commercial financing situation is that very few of the smaller local banks have resumed prior business loan activities. A previously familiar and reliable source for working capital loans might not continue to be a viable business funding choice. For the most part, local and regional banks simply do not have sufficient capital for new commercial loans. In addition to business owners seeking alternative commercial funding sources, many commercial borrowers will now discover new financing choices such as business cash advance programs. Under most circumstances, business cash advances are provided by business lenders other than commercial banks. Such a working capital funding source might increasingly prove to be more reliable than traditional banks of any size in providing commercial financing effectively. By looking for lenders displaying an appropriate attitude of “We`re all in this together”, business owners should hopefully find that their business financing circumstances will improve.
Commercial Loans – How Long Should They Take?
Stephen Bush asked:
One of the most misunderstood aspects about commercial loans is how long they take to arrange. There are some types of commercial loans which can be obtained in just a few days while other business loans are likely to take up to 60 days or more.
The primary example of commercial loans that are likely to take the longest to arrange is a commercial real estate loan. Even with the quickest variation of a commercial mortgage, business owners should expect this to take 45 to 60 days (up to nine months is a possibility with some traditional banks for certain commercial mortgages). One aspect that causes this type of commercial loan to take so long is the requirement for a real estate appraisal. This requirement alone is responsible for 30-40 days of the commercial mortgage process. The example requiring up to nine months is likely to involve an environmental review and/or business plan, both of which add substantial costs as well as time to the commercial financing process. However, not all lenders will require either an environmental review or business plan, so business owners should inquire in advance about these extra requirements.
One of the quickest examples of business financing involves a business cash advance based on future credit card receipts (credit card receivables). This commercial financing can be arranged in just a few days and requires very little documentation except for credit card receipt information and is called credit card factoring. Like the example above, some lenders will require more documentation such as tax returns and financial statements. As a result for such lenders the timeline is likely to be several weeks instead of several days.
In both examples above, timing issues will be extended if the initial commercial loan attempt does not result in a successful outcome. Business owners need to realize that with relatively quick-funding possibilities as well as more time-consuming examples such as commercial mortgages, there might still be insurmountable obstacles which result in a declined commercial loan. Although there will frequently be other commercial financing options available even after a lender declines a commercial loan, such “false starts” will result in a more time-consuming process for the small business borrower.
In the end the commercial financing process will be as short as possible if a business borrower does the following before starting their commercial loan search:
(1) Determine whether they need long-term or short-term financing
(2) Perform a preliminary assessment of their cash needs, credit scores and borrowing power based on assets like credit card receivables and equity in commercial property
(3) Review potential lender requirements such as those mentioned above involving environmental reviews and business plans as well as other common lender requirements such as tax returns and financial statements
(4) Commercial borrowers should visit http://www.aexcommercialfinancing.com for an overview of strategies for avoiding problems commonly associated with commercial loans.
Copyright 2005-2007 AEX Commercial Financing Group, LLC. All Rights Reserved.
3 Day Approvals for Business Loans
One of the most misunderstood aspects about commercial loans is how long they take to arrange. There are some types of commercial loans which can be obtained in just a few days while other business loans are likely to take up to 60 days or more.
The primary example of commercial loans that are likely to take the longest to arrange is a commercial real estate loan. Even with the quickest variation of a commercial mortgage, business owners should expect this to take 45 to 60 days (up to nine months is a possibility with some traditional banks for certain commercial mortgages). One aspect that causes this type of commercial loan to take so long is the requirement for a real estate appraisal. This requirement alone is responsible for 30-40 days of the commercial mortgage process. The example requiring up to nine months is likely to involve an environmental review and/or business plan, both of which add substantial costs as well as time to the commercial financing process. However, not all lenders will require either an environmental review or business plan, so business owners should inquire in advance about these extra requirements.
One of the quickest examples of business financing involves a business cash advance based on future credit card receipts (credit card receivables). This commercial financing can be arranged in just a few days and requires very little documentation except for credit card receipt information and is called credit card factoring. Like the example above, some lenders will require more documentation such as tax returns and financial statements. As a result for such lenders the timeline is likely to be several weeks instead of several days.
In both examples above, timing issues will be extended if the initial commercial loan attempt does not result in a successful outcome. Business owners need to realize that with relatively quick-funding possibilities as well as more time-consuming examples such as commercial mortgages, there might still be insurmountable obstacles which result in a declined commercial loan. Although there will frequently be other commercial financing options available even after a lender declines a commercial loan, such “false starts” will result in a more time-consuming process for the small business borrower.
In the end the commercial financing process will be as short as possible if a business borrower does the following before starting their commercial loan search:
(1) Determine whether they need long-term or short-term financing
(2) Perform a preliminary assessment of their cash needs, credit scores and borrowing power based on assets like credit card receivables and equity in commercial property
(3) Review potential lender requirements such as those mentioned above involving environmental reviews and business plans as well as other common lender requirements such as tax returns and financial statements
(4) Commercial borrowers should visit http://www.aexcommercialfinancing.com for an overview of strategies for avoiding problems commonly associated with commercial loans.
Copyright 2005-2007 AEX Commercial Financing Group, LLC. All Rights Reserved.
3 Day Approvals for Business Loans