This working capital management report provides advice about how and why to avoid the online application trap involving business loans. Commercial borrowers should avoid submittals of any application forms until after individualized lender discussions and under most normal circumstances, commercial borrowers should avoid online applications for commercial loans and business cash advances.
Business owners and commercial borrowers will consistently find an almost limitless supply of internet sites for commercial loans. Most business cash advance websites will include some version of an online application. Here is a four-step process for avoiding the unwise use of applications for business loans.
The first step is to avoid the initial temptation to submit a commercial loan application online. It does appear to be convenient for a business borrower to apply for business financing online. Perhaps some business owners are attracted to the anonymous nature of the online business finance application because they have been previously annoyed by sales tactics and evasive answers in loan discussions.
Many commercial lenders have contributed to the pervasiveness of online business finance applications in large part because they are fearful of losing some competitive advantage by not having this capability. However in attempting to match their competition, business lenders and brokers are sacrificing the best interests of their commercial borrower clients by facilitating the online application approach for commercial loans.
The second step is to understand why it is essential to avoid an online business finance application. Submitting a commercial loan application via a website is equivalent to blindly sending a resume to a company seeking employment without any prior discussions or research. What makes an online business loan application even more risky and inadvisable than the anonymous resume example is the usual inclusion of tax identification numbers and other sensitive business data on a commercial funding application document.
There are several key problems associated with an online business finance application. First, there are always potential security breaches during transmission (as well as before and after transmission). Second, there is a significant loss of control by the commercial borrower in the use of their social security number or business tax identification number for checking credit (since many online business finance application processes will result in checking credit before any personal conversations occur). Third, most commercial loans are simply too complex to initiate by an oversimplified automated process. If we can use a brief sports analogy, starting the commercial mortgage loan or business cash advance process with an automated application is tantamount to the kickoff of a football game occurring without any pre-game warmups, coaching pep talks or the traditional coin toss. The easiest approach overlooks too many essential preliminary steps.
A suggested third step is using an alternative and improved approach to the online business loan process. The simple and pragmatic solution to the business finance application dilemma is to insist on preliminary personal discussions with an experienced advisor before submitting any form of commercial finance application. A suitable and ethical commercial lender will not ask a commercial borrower to submit any application until the borrower has completed a thorough discussion with the lender confirming that business financing is appropriate for a specific business situation.
Commercial borrowers should anticipate that many lenders and brokers will deny any potential problems in using their online applications. In such situations, business borrowers should search for a commercial loan advisor who routinely emphasizes an individualized and conversational approach to commercial funding.
The fourth step is to explore additional resources that will facilitate a better understanding of complex business finance issues. The Working Capital Financing Guide and The Commercial Real Estate Loans Guide are examples of resources for business financing strategies addressing small business cash management and business financing problems.
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By: jen walker | 10-07-2008
HelloI dont know if any one out there can help me or not, but i would like to know, i am trying to buy a hotel/motel start property but my credit score is 500 and no bank is willing to loan me the money to but a property, the size of the preproty that i am looking for is from 30 to 60 room with NO resturant. where i would like to have it is in AK,WA,ID.MT,ND,PA BUT If SOME ONE WOULD LIke me to be some where els thats fine. At this time i am a manager for a wearhouse with a B.S in hospitality and i would be glad if i can get my first starter property. yes i will do what i have to, get down to give you your money back. Please if you can help me let me know.
Compensation or Trickery via Claims Inflation
By: Dee | 09-07-2008
Help.....I recently submitted a small claim to my homeowners insurance via a public adjustor at the reccommendation of a trusted friend....I recieved my payout amounts from the adjustor which incl. a 20% charrge to him,a 756.00 depreciation value for carpet replacement, and a 500.00 ded./ Does the ins. company award the tot. claim amt. minus the deductible or vice versa.....Basically when i questioned this, I informed the adjustor i felt as if I was paying my 500 ded. 2x's. Am I being paranoid or shafted.....What can I do.....Should I request the Exp. of Benefits for my claim from the ins. co...I need to know......The numbers do not add up....regardless of where they are strategically placed.....(Things that make you go hmmm).
need to be informed
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If I retire from the postal service and I am working 4 hours a day, will I still recieve the other 4 hrs pay from dept.of labor? I have a occupational disease which is ganglion cyst. I have worked 4 hours a day for the past 17 years.
Robertsons Spices (Unilever)
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I would like to know what the annual sales volume is for Robertsons Spices (part of the Unilever group) in South Africa?
Securing $140,000,000 loan
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i want to ask how can I raise $140,000,000 for a project. we have all details including business plans etc... ?? pls provide leads to legimate financial organisations who can finance this project . this project is in dubai,UAE
Builder inventory
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What are Banks going to do with unfinished builder homes after foreclosuer. If not sold at auction, will they hire other builders to complete them?
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