Either because banks do not want to publicly admit that they are not making small business loans or perhaps due to their changing guidelines for making such loans, it has not been unusual for commercial borrowers to wait for one to two months before their bank finally declines to make a commercial loan that had appeared to be a mere formality when the lending process began. As we stated, it is wise and prudent for small businesses to anticipate the long and winding road that lies ahead for even the most ordinary business financing request.

• Seek help to find the “missing pieces” in the form of alternative lending sources
• Reduce business financing requirements (comparable to now needing fewer pieces to complete the puzzle)

As with any complex working capital financing situation, all realistic business financing options should be thoroughly evaluated with the help of an experienced commercial finance expert.

In the current dysfunctional commercial lending climate, business borrowers should not hesitate to do whatever it takes for their business to survive. A link to the AEX "Survival Guide" is provided in the right-hand column of The Working Capital Journal.

In a manner similar to many automobile manufacturers that are now a tarnished and shriveled version of what they once were, it seems like almost overnight most commercial banks and small business lenders have lost our confidence. In this shifting reality, business owners are now forced to adapt quickly to a changing environment for small business loans. Candidly speaking, even if a business lender is their best friend, small business owners are increasingly realizing that they must look out for their own best interests because it is unlikely that their commercial lender is up to the task anymore.

As if we needed to be reminded that business lending is on life support (lenders and politicians are not likely to ever admit this publicly), the largest small business lender in the country has recently sought bankruptcy as the solution to their own serious problems (CIT Group). Firing your commercial lender has become both a necessary and more acceptable solution when your business is not able to obtain adequate business financing from existing commercial lending sources.

We have published a report to help highlight some of the issues for this critical problem. Please see the right-hand column of The Working Capital Journal for a link to this candid assessment about "Firing Your Banker" or other ineffective business lenders.

However, in the current rugged commercial lending climate, many lenders are taking advantage of the situation and grossly overcharging for their business finance services. Such a greedy mentality by commercial lenders should not be acceptable to any commercial borrowers regardless of their situation.

Here is what we are doing to resolve the situation to the best of our ability: (1) AEX Commercial Financing Group is currently providing free business financing analysis (which is usually more candid, practical and effective than most other sources). (2) AEX is not charging any upfront fees for working capital financing. (3) In addition to eliminating fees for all working capital management services, AEX has also reduced fees for commercial loans and business consulting.

The three AEX actions for reducing or eliminating commercial finance fees are intended to be in the spirit of “We’re all in this together” because AEX Commercial Financing Group recognizes that most businesses are experiencing unusual working capital problems.

While AEX will not always be able to provide the specific business financing help that a business owner is looking for, we will usually know if we can be helpful after a brief candid conversation. Our business finance services are available to small business owners located throughout the United States.

Because commercial lending is extremely competitive, new lenders have emerged to replace the old ones. As business financing moves in a new direction, the banking industry is beginning to resemble other aging industries such as automobile manufacturers. While the similarities are probably not welcomed by many bankers, small business owners will now find that their business finance and working capital financing choices might have improved as a result.