ArticlesBase.com - Free Articles Directory
Free Online Articles Directory
08.10.2008 Sign In Register Hello Guest
Email:
Password:
Remember Me 
forgot your password?


Small Business Financing and Commercial Loans - What to Avoid

Author: Stephen Bush Author Ranking Blue | Posted: 25-05-2008 | Comments: 0 | Views: 8 | Rating:  (52) Article Popularity - Blue (?) Got a Question? Ask.
Sign Up Now!

It is always advisable to have a detailed understanding of what can go wrong with commercial loans and working capital financing. The five factors described can have negative and long-lasting financial results for small business loans and commercial real estate loans. Business owners should be prepared for these real possibilities.

Most commercial borrowers do not want to experience a worst case for commercial real estate loans and small business loans. There are several elements that we believe will almost always produce this serious but avoidable result when they are all present simultaneously. Understanding each of the issues should enable borrowers to avoid a potentially devastating working capital financing outcome.

Here are the issues which we believe will usually result in a worst case scenario for commercial loans if all five are present: (1) Dealing with an inexperienced commercial finance advisor; (2) Using a lender which historically has an unacceptable track record for successfully completing commercial loans; (3) Obtaining business financing that includes a recall option for the lender; (4) Inappropriate and non-competitive business loan terms; and (5) Short-term financing in which a borrower is not also offered the opportunity to lengthen to a longer-term period.

Our primary advice is to totally avoid circumstances where all five factors exist at the same time. A secondary recommendation is to also seek alternative financing for commercial loans when either of the first two elements are present. There are likely to be many working capital management scenarios where it will be impractical to avoid all of the issues described in the preceding paragraph.

Business owners should make every possible effort to obtain commercial financing in which the worst case situation is not present. Business owners will subject themselves to inappropriate business financing terms for a very long time if they do not take appropriate action before they finalize commercial loans. There are two points which should be emphasized.

First, small business loans are more complex than most borrowers realize. There are a number of additional serious commercial funding obstacles beyond those noted in this brief article. Because of this, it is important for commercial borrowers not to narrowly focus on the factors included in the worst case scenario discussed here and simply avoid these specific issues.

A comprehensive approach to working capital management should incorporate a balanced analysis of both the worst case aspects and other critical business finance terms. The importance of this overall perspective is why we emphasized the critical nature of avoiding both inexperienced brokers and lenders.

Second, the worst case scenario for business loans described above is totally avoidable. But to avoid an obstacle, it is critical that you have a working understanding of what you are avoiding, what it looks like and any special techniques required to evade it. For example, if you are driving a car, it is common sense that you will not intentionally drive your vehicle over sharp pointed objects that are likely to puncture your tires.

With commercial loans and commercial real estate loans, the combination of the five factors noted previously in this article will typically produce an impact for small business funding that is equivalent to much worse than simply puncturing a tire. Unfortunately, without proper advice and knowledge, most business owners will not be prepared to recognize the appropriate warning signs for avoiding business financing hazards.

In this article we focused on problems with small business financing that will almost always have long-lasting and immediate negative results for business owners. Commercial borrowers should not overlook the multitude of other serious problems with commercial loans beyond those described. As with the circumstances noted above, most of the other potential difficulties with business loans can also be avoided.

Rate this Article: Current: 0 / 5 stars - 0 vote(s).

Article Source: http://www.articlesbase.com/finance-articles/small-business-financing-and-commercial-loans-what-to-avoid-426030.html

Print this Article Print article   Email to a Friend Send to friend   Publish this Article on your Website Publish this Article   Send Author Feedback Author feedback  
Stephen BushAbout the Author:

Obtain business cash advance strategies and learn how to avoid problems with small business loans at AEX Commercial Financing Group. Steve Bush is a commercial finance expert =>
http://aexcfg.com

Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free!

Article Comments

Comment on this article Comment on this article
Your Name
Your Email:
Comment Body
Enter Validation Code: Captcha


Related Articles

The Potential for Malpractice With Commercial Loans
By: Stephen Bush | 22/03/2008 | Finance
Free Finance articles for use on your Finance related website. Find articles of the subject of Finance

Small Business Loans and Plan B Contingency Finance Strategies
By: Steve Bush | 16/09/2008 | Finance
Free Finance articles for use on your Finance related website. Find articles of the subject of Finance

Stated Income Commercial Loans Have Changed
By: Steve Bush | 01/10/2008 | Finance
Free Finance articles for use on your Finance related website. Find articles of the subject of Finance

Avoid Online Business Loan and Business Cash Advance Applications
By: Stephen Bush | 01/02/2008 | Finance
Free Finance articles for use on your Finance related website. Find articles of the subject of Finance

Business Loans And Business Cash Advances - Avoid Online Forms
By: Steve Bush | 17/05/2008 | Business
Business Articles, learn about busines - An organization created with the objective of making a profit from the sale of goods or services.

Commercial Real Estate Loans - Overcoming Rejections
By: Stephen Bush | 13/02/2008 | Finance
Free Finance articles for use on your Finance related website. Find articles of the subject of Finance

Commercial Loan Help for Avoiding Problem Working Capital Lenders
By: Stephen Bush | 30/06/2008 | Finance
Free Finance articles for use on your Finance related website. Find articles of the subject of Finance

Avoid Business Opportunity Investment Financing Mistakes
By: Stephen Bush | 18/12/2007 | Finance
Free Finance articles for use on your Finance related website. Find articles of the subject of Finance

Got a Question? Ask.

Ask the community a question about this article:

Q&A Powered by:
Powered by Yedda 

Latest Finance Articles

Stock Market Advice - Be Careful Who You Listen To
By: Bruce Lipski | 08/10/2008
You can get stock pics almost everywhere including magazines, TV shows, radio shows, The Internet and probably many other places as well. One thing is for sure, there is no shortage of opinions.

Learning Proper Money Management For College Students
By: Jamie B. McIntyre | 08/10/2008
It is tempting for college students to just throw caution to the wind and enjoy life as it comes. I mean, you are only young once and there are so many things to enjoy while you at that age when you are totally energetic and feeling full of excitement and...

Off Shore Incorporation In Ras Al Khaimah Is The Quickest In The Middle East
By: Ramapati Singhania | 08/10/2008
Off shore incorporation in Ras Al Khaimah [RAK], one of the fastest growing emirates in one of the fastest growing economies of the world - the United Arab Emirates [UAE] is the easiest to do in the Middle East.

BVI Offshore Registration: All That You Need To Know To Get Started
By: Ramapati Singhania | 08/10/2008
BVI offshore registration is certainly cheaper than Lichtenstein or Luxembourg and extremely popular. More than 6,500 companies are incorporated in this jusrisdiction every month!

The History of the Global Forex Market
By: Orlando Thompson | 07/10/2008
In this article we explain what the global forex market is and how it came to be this is very insightful information that will help you in your forex trading system choices.

How To Go About Improving Your Credit Score
By: MIKE SELVON | 07/10/2008
While it'd be nice to live a "credit-free existence," it can be difficult to do so in today's world.

Self Directed IRA Possibilities With A Small Business
By: Jerry Glynn | 07/10/2008
It is normally not possible to set up a self directed IRA with a small business. This article describes a little known strategy that can be used in conjunction with a small business.

Understanding Debt Consolidation Loans
By: Richard Greenwood | 07/10/2008
It can be all too easy to end up in debt and especially during the current times of financial uncertainty you may find yourself unable to make repayments. Consolidating your debt can make your debts easier to manage and lower your interest charges meaning you become debt free faster.

More from Stephen Bush

Plan B Contingency Financing for Commercial Loans
By: Stephen Bush | 24/07/2008 | Finance
It is prudent to have a contingency plan when attempting to obtain commercial loans and business cash advances. Having a Plan B for commercial financing and working capital funding will avoid many serious problems.

Working Capital Financing and Short-term Commercial Loans
By: Stephen Bush | 11/07/2008 | Finance
There are two short-term working capital financing options which are often overlooked by business owners. These involve business cash advances and short-term commercial mortgages.

Commercial Loan Help for Avoiding Problem Working Capital Lenders
By: Stephen Bush | 30/06/2008 | Finance
One of the most serious working capital financing scenarios is a lender that causes difficulties for their small business commercial borrowers on a regular basis. It is specifically this kind of commercial lender which informed commercial borrowers should be prepared to avoid unless realistic alternative options for commercial loans and commercial mortgages are totally impractical.

Avoiding Problems With Working Capital Business Cash Advances
By: Stephen Bush | 19/06/2008 | Finance
Working capital solutions and credit card processing are more connected than most business owners realize, and changes to either are likely to have measurable impacts on business profitability. The business finance benefits will be especially noticeable if several typical small business cash advance difficulties can be avoided.

Commercial Mortgage Business Loans - Think Outside the Bank
By: Stephen Bush | 05/06/2008 | Finance
Business borrowers have more commercial mortgage and business loan alternatives than they realize. We can refer to these commercial loan alternatives as "Thinking Outside the Bank" because a typical commercial borrower probably believes that a bank is the best source for a commercial real estate loan and business financing.

How to Avoid Small Business Financing Mistakes
By: Stephen Bush | 10/05/2008 | Finance
Avoiding key business financing mistakes is not an easy task. However, by avoiding such mistakes, commercial borrowers will eliminate critical business finance problems and obtain better commercial loan terms.

How to Improve Business Financing and Credit Card Processing
By: Stephen Bush | 24/04/2008 | Finance
Obtaining a business cash advance by using credit card processing is often overlooked by business owners. This important business financing and working capital management strategy is applicable to most retail and service businesses.

Business Loans and Business Finance - What You Need to Know
By: Stephen Bush | 09/04/2008 | Finance
This commercial loans report is designed to help educate new commercial investors about important business finance loan issues. Since more investors are exploring opportunities involving business loans, it is vital that they have an early introduction to the many critical differences between residential real estate investing and commercial property and business opportunity investing.

Article Categories






Give Feedback

Sign up for our email newsletter

Receive updates, enter your email below