Business Finance Help

Business Bank Consulting Help

Stephen Bush — Thu, 17 Jun 2010 18:08:58 +0000

The use of business bank consulting services is likely to be increasingly helpful (and essential in some cases) for small business owners faced with the failure of their current bank to provide needed working capital financing and commercial loans for their routine business operations. In any case, most commercial borrowers have probably noticed that the business lending process has become more challenging and are likely to welcome any help they can get.

For small businesses needing assistance to solve this potentially critical business finance problem (or at least having a serious interest in talking about it), Stephen Bush, Chief Executive Officer and Founder of AEX Commercial Financing Group, actively serves as a commercial bank consultant providing business bank consulting services to help small business owners in evaluating current and prospective banking relationships.

Working Capital Described in Six Words

Stephen Bush — Tue, 06 Apr 2010 16:56:27 +0000

This special report describes working capital management issues in six words as part of our ongoing efforts to provide more understandable insights about some of the most critical small business finance circumstances effecting commercial borrowers. A review of related reports such as “Seven Words to Describe Business Cash Advances” and “Commercial Mortgage Options Described in Seven Words” should also contribute to a better understanding of practical business financing options for small businesses.

“Banks are not an effective solution” is one of the six-word explanations used an an example of current working capital funding difficulties. The severity of this problem will not always be apparent to small business owners until it directly impacts their own business. Very few banks are consistently providing working capital loans. This situation is especially serious if a business cannot replace bank financing when it suddenly disappears because even the most successful businesses need a reliable source of working capital financing. On a widespread basis banks are reducing and eliminating business credit lines with almost no advance notice, and this must be realized even if a business still has an adequate line of credit.

A Long and Winding Road for Commercial Loans

Stephen Bush — Fri, 05 Mar 2010 17:49:16 +0000

It is almost always helpful to have realistic expectations of what lies ahead. Our purpose in describing current efforts by small business owners to obtain commercial loans as potentially being a long and winding road is to emphasize the recent confusing and unpredictable state of commercial banking. While there are new (and effective) commercial lending options that will satisfactorily fill the business funding gap for many small business owners negatively impacted by their current ineffective commercial bankers, the eventual success of these alternatives will depend on the unique financial circumstances for a specific business.

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.

The Working Capital Management Puzzle

Stephen Bush — Mon, 25 Jan 2010 16:51:57 +0000

A continuing theme in The Working Capital Journal during the past two years has been an analysis of the increasing challenges which now impact working capital financing for small businesses. For some commercial borrowers this situation probably resembles a confusing working capital management puzzle in which the level of difficulty keeps changing.

The puzzle comparisons have become even more relevant when evaluating the impact of fewer banks to provide small business financing. To most business owners seeking working capital in a more hostile commercial banking environment, it must seem like some of the required puzzle pieces are missing in action. In actuality this perspective is fairly accurate because many banks which were previous sources of commercial financing for small businesses have indeed left the playing field. To continue the working capital management puzzle analogy, here are two practical options for business borrowers:

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.

Refinancing Working Capital and Business Loans

Stephen Bush — Mon, 04 Jan 2010 15:03:08 +0000

Complications in refinancing working capital and business loans are occurring frequently in the current irregular bank lending environment. Because of these ongoing difficulties, commercial loan refinancing is a prime example of the need for small business owners to explore new working capital and commercial mortgage financing solutions.

While business loan refinancing is still possible, there is a growing consensus that it has not been so difficult for several decades. Some commercial finance situations lend themselves better to refinancing than others. SBA financing, business opportunity loans and replacing an existing business line of credit are three scenarios that are especially difficult to refinance.

Whatever the specific financing situation for a small business, commercial borrowers should be better prepared if they approach the process with a realization that there might not be the usual obvious solutions to refinancing business loans. Before the end of their current efforts to refinance business debt, it seems likely that most businesses will need to consider both new business financing programs and new commercial lending sources.

What Went Wrong with Small Business Financing?

Stephen Bush — Fri, 18 Dec 2009 17:19:47 +0000

Small business owners will be more likely to avoid serious future business finance problems with working capital management and commercial real estate loans by exploring what went wrong with business financing and commercial lending. Especially if they need help finding realistic small business finance options, this is a critical issue for most commercial borrowers.

Business owners should be prepared for the banks who caused the recent financial chaos to say that nothing has gone wrong with commercial lending. Nothing could be further from the truth — and if small business owners and commercial lenders choose to ignore the many mistakes recently made by business lenders, as noted in a popular phrase we may be doomed to repeat these mistakes. Despite contrary views from bankers and politicians, most objective observers would agree that the multiple mistakes made by banks and other commercial lenders were serious and are likely to have long-lasting effects for commercial borrowers.

A link to a longer discussion of "What Went Wrong?" is provided in the right-hand column of The Working Capital Journal. Please contact AEX Commercial Financing Group directly for assistance in avoiding circumstances such as those described in the overview.

To close on a positive note, there are practical small business financing solutions available to business owners in spite of inappropriate commercial lending practices currently seen almost everywhere.

Working Capital Financing

Stephen Bush — Sat, 05 Dec 2009 15:03:46 +0000

It is not an exaggeration to say that obtaining working capital loans has routinely become a tug-of-war process for most small businesses. Working capital financing is simply not available from many banks.

In a promising development, the dysfunctional banks are being rapidly replaced by more effective commercial lenders. We are seeing new and practical small business finance options emerge to fill the void left by banks which have abandoned commercial lending (especially working capital financing). Many small businesses are qualifying for these new working capital management programs because inappropriate bank underwriting criteria have been replaced by a more relevant business cash flow analysis. There is usually a short turnaround time for obtaining working capital if a business qualifies for this straightforward and practical small business financing program.

The primary challenge for many small business owners will be to quickly conclude that their prior banking relationship is no longer what it was just a few months ago. By moving forward promptly and choosing new commercial lending sources that are capable of operating in this new small business finance environment, business owners will find the new working capital loan options to be a substantial improvement over previous bank financing in a surprising number of cases (this is the silver lining in the working capital financing cloud hanging over most commercial borrowers).

Small Business Loan Success With Guerrilla Financing Options

Stephen Bush — Mon, 16 Nov 2009 14:04:18 +0000

The necessity of resorting to guerrilla loan tactics has been accelerated by the decreased performance of commercial lenders in providing effective and realistic small business finance programs.

To help commercial borrowers achieve small business loan success in an increasingly hostile commercial banking environment, AEX has published a report that is designed to serve as a short survival guide for business owners when they are seeking business financing. These suggestions should be considered by most commercial borrowers in the early stages of their commercial financing search due to the growing failure of banks and other lenders to provide a normal level of business funding — so while the actions described in this AEX report might be seen as a last resort to be undertaken only when all else fails, we view them as a prudent starting point.

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.

When to Fire Your Commercial Lender

Stephen Bush — Wed, 04 Nov 2009 14:27:30 +0000

Since the banking meltdown, most of us are now reluctantly admitting that banks and other commercial lenders are just not the same.

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.

How to Reduce Small Business Finance Fees

Stephen Bush — Fri, 23 Oct 2009 16:09:28 +0000

The ability to keep small business financing fees at an appropriate level is the key to financial success for most businesses.

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.