Small Business Loan Improvements with Commercial Bank Consulting

(Stephen Bush). Submitted on Thu, 15 Jul 2010

Glaring differences such as those discussed below make a compelling case for efforts to improve business loan options with the strategic use of commercial bank consulting. Before completing any new financial agreements, borrowers should benefit by calling upon a business bank consultant to help them make a final call or to serve as a business financing expert providing them with a candid second opinion. This report encourages small business owners to take aggressive action when determining which commercial real estate loan and working capital options are realistic for their business circumstances.



This often leads to what can be an almost painful part of the process for a typical small business owner. If their bank ends up being in the bad bank category by whatever definition the business bank consulting evaluation uses, a commercial borrower will be faced with the unenviable task of firing their banker. However in most cases it will be quickly realized that if the current bank was performing as expected, the overall review of new and effective small business loans would not have been undertaken in the first place.

An acceptable business bank consultant must be capable of differentiating between good banks and bad banks. However in the current commercial lending climate it is essential to include non-bank sources for programs such as merchant cash advance services in the complete assessment of practical commercial loan options. As a result, although this report clearly makes direct reference to commercial bank consultants for this important role, in no way does this mean that the business finance options expert chosen should only be familiar with bank financing.

It is of course likely that any bank referred to as a bad bank will challenge the assertion. Fortunately most small business owners have sufficient memories to recall that very few banks were credible sources of accurate information during the recent banking chaos. As with many economic and financial activities, there are independent statistics available to help judge whether small business financing is experiencing a severe downward trend or not.

If it becomes necessary to replace a bank, it should be realized in advance that based upon specialized small business finance criteria, only a few banks can pass the stringent tests to be viewed as a good bank. If a small business is currently using what is deemed to be a bad bank but still needs an ongoing banking relationship, a vital part of commercial bank consulting will be the identification of at least one good bank candidate. Even though many financial experts will debate whether there are any good banks left standing, the search for them must realistically continue.

With widespread public reports showing business financing services at the lowest levels in many years, banks are simultaneously boasting about the supposedly robust level of their business loan activity. In one possible explanation for the disparity, banks might be offsetting a clear decrease in small business lending with an increase of commercial loans to large corporations.

The commercial lending process has grown more challenging for small business owners, and business bank consulting might prove to be the most successful strategy for achieving commercial loan and working capital financing improvements. Selecting a business loan expert is easily the most important step in hiring a qualified commercial bank consultant.

 

About the Author

Stephen Bush is a business finance expert and has developed practical solutions for small business financing problems. Business owners should contact Steve at AEX Commercial Financing Group to receive a candid review of commercial loan options and merchant cash advances.

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