When faced with business Finance funding decisions, it is essential for business owners to determine their practical and effective alternatives. In the face of recent volatile conditions impacting financial markets, this will not be an easy task. For example, there has been much misinformation and confusion about the true availability of commercial financing throughout the United States. Getting more accurate information about what is realistically possible can be one of the most difficult challenges for commercial borrowers.
Even for business owners who are satisfied with their current commercial finance funding arrangements, it is advisable to explore business financing options that might be necessary if economic conditions change further. The use of Plan B contingency financing is an important tool to assist commercial borrowers in this process.
There are a number of harsh realities which must be confronted by all commercial borrowers when assessing their realistic options in the current challenging commercial finance funding climate. There are several factors which will have an immediate impact on which financing alternatives can be considered. First, unsecured lines of credit are rapidly disappearing for many businesses because commercial lenders are eliminating or reducing this kind of working capital financing. Second, many regional banks have decided to stop or reduce their lending activities involving commercial mortgages and other commercial loans. Third, commercial construction financing is available on a very limited basis. Fourth, businesses which are not currently profitable or not current in their debt payments will encounter particular difficulties in seeking new funding. Fifth, many lenders are requiring more collateral for any new commercial loans.
The primary message of this article is to emphasize the importance for commercial borrowers of being more realistic when seeking new financing or refinancing. As noted above, there are some stark changes which now impact almost all new commercial loans. Despite these new and difficult challenges, most business owners will still be able to obtain new financing, although it is very likely that either the terms or kind of financing will be different from previous business financing arrangements.
For example, even though working capital loans are not as widely available as they were just a few months ago, this kind of commercial financing is still in fact obtainable. The main change for business borrowers is the likelihood that they will be dealing with a different commercial lender, since some of the largest providers have stopped making these loans. Furthermore, the lenders which are currently most willing to consider working capital funding are not aggressively promoting these particular financing activities.
Business cash advance programs which are based on credit card processing activity are another example of an increasingly practical commercial financing option in the midst of an uncertain economy. Although this business funding option has been available for several years, it has not been utilized by most small business owners. For most businesses which accept credit cards, business cash advances should be evaluated as an important tool for improving business cash flow. Commercial borrowers wanting to consider this financing alternative should consult with a commercial finance funding expert who is knowledgeable about both this specialized kind of working capital financing as well as commercial real estate loans and other commercial loans.
Steve Bush
http://www.articlesbase.com/finance-articles/practical-alternatives-for-commercial-finance-funding-741217.html
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#1 by bluenaketat on June 22, 2010 - 11:26 pm
Whose fault is the economic crisis anyway?
So let’s look at how we got here:
ILLUSIONS
Big part of what makes the American Dream is hope. However unrealistic, uneducated, and misinformed choices replace hope with illusions.
Buyers had the illusion that homes would always keep increasing rapidly in value. However, they failed to understand that the real estate market has cycles. Some of the factors that create a change in the market are increased amounts of supply or demand, deregulation of the financial industry, easy and available credit, low interest rates and much more.
People who bought homes they could not afford did it because they saw an opportunity to “invest” their life savings and achieve the American dream. They viewed this opportunity as attainable because banks made it possible, unscrupulous agents/brokers made them believe it was possible, and because they lacked the knowledge necessary to understand the responsibilities, risks and benefits of owning a home.
Other illusions buyers had was their wages. The had the illusion that their wages would go up enough year after year to cover their ever increasing debt due to a lavish life style. This illusion, the lack of financial education and self-control allowed for people to live well beyond their means.
Today people, banks, and our government are drowning in debt.
CREDIT
Competition in the market forces business to improve on their products and allows the consumer to purchase those products at affordable prices. However, competition between banks in a booming economy and low interest rates created a credit bonanza.
Instead of banks improving on their products and services, they began utilizing creative financial tools to attract more borrowers. They also lend money to risky borrowers with little regard of their qualifications. Anybody that had a pulse could literally get a loan.
Banks can’t accommodate the demand for credit only with their money reserves. So if they want to lend more money, they sell these mortgages to commercial banks and Wall Street lenders.
Financial Crisis: Who’s Fault Is It, Anyway?
Doesn’t matter.
Because just about everyone is to blame.
Republicans opened the door through debt-based credit derivatives and deregulation. Democrats further contributed by turning a blind eye to Fannie and Freddie and insisting that even those who couldn’t really afford mortgages be allowed to get them. The Bush Administration touted consumer spending as a means to boost the economy, and encouraged reckless consumer behaviors with billions in "stimulus"money, all while fueling the national debt through a disastrous war and tax cuts for people who don’t really need them.
And, of course, greedy banks and mortgage lenders went along, doing their best to bilk whoever came through door for whatever they could get — before passing the risk on to equally greedy investment banks and hedge fund managers. Consumers came along for the ride, abandoning reasonable financial practices and using credit to fuel materialism — as well as making poor decisions by buying homes they couldn’t afford with "creative" mortgage financing.
Nearly everyone shares some of the blame. This is not the time to bicker over who is most at fault. It doesn’t matter. The past is past. It’s time to move forward and fix the problem. REALLY fix the problem. With practical solutions (that’s right, follow the link for just one alternative — and better IMO — solution) that don’t involve throwing a large, arbitrary amount of money at the problem.
This is something that requires measured thought. And a change in how our society now views debt, money and the economy. There’s no reason to rush into a bailout plan right now. Instead, a little more analysis is needed.
#2 by Rev-'em-up Wright on June 23, 2010 - 4:28 am
This is the real answer simply put:
Inserting socialist programs into a capitalist system.
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#3 by RomeyM on June 23, 2010 - 4:30 am
I believe you forgot to give credit where credit is due to the Democrats you have sitting in congress, they have a great deal to do with the financial crisis as well.
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#4 by Bert R on June 23, 2010 - 4:32 am
the CRA, inflation, and a fiat money system
while people took credit they couldn’t afford (poor behavior no doubt), the credit was artificial and would not have existed if it wasn’t created by the Fed.
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#5 by Thomasina Paine on June 23, 2010 - 4:34 am
The globalists who are destroying western civilization.
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#6 by black leopard on June 23, 2010 - 4:36 am
financial institutions
speculators
special interest groups with political influence
politicians with ties to influential special interest group
we are part of the problem, we are addicted to credit cards
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#7 by iamct01 on June 23, 2010 - 4:38 am
It started with Reagan lifting tariffs that use to protect our industrial might. Clinton signing the Republican NAFTA agreement did not help. But the real mistake was listening to GreenSpan. He had this great idea to give everybody credit even if they cannot afford it which is good for interest business but now the outsourcing is catching up to us and we don`t have the wages to pay off anything so we stop buying.
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#8 by Cup-o-STFU on June 23, 2010 - 4:40 am
Pelosi has targeted you for death….
You have figured it out, she has sent a squad after you. You are hereby sentenced to death by styfling suffocation under barney franks enormous A$$.
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heh
#9 by tribeca_belle on June 23, 2010 - 4:42 am
Right, blame everyone. One thing is clear — we have been lacking decent, responsible leadership for years and we are about to get a much better president in January. I hope Obama and Congress will be able to address the mess that has been made by the previous administration because we need to have various problems addressed sooner rather than later.
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#10 by Bruce L on June 23, 2010 - 4:44 am
It’s very complex and many mistakes have been made by government as well as the mortgage industry but the one factor that stands out above all is the desire of people to "keep up with the Jones". Without this factor none of this would have happened but how can you expect people to live within their means when you dangle enticing offers and gee whiz electronics in front of them and give them lines of credit that they should never really have had? It’s like the story of the Garden of Eden, Eve and the forbidden fruit that Satan made so enticing.
Here is an extremely good article that puts a good handle on what has happened over the years. It’s pretty long, but a definite must read.
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http://seekingalpha.com/article/90892-the-great-consumer-crash-of-2009
#11 by Lana Lang on June 23, 2010 - 4:46 am
Barney Frank for pushing Freddie Mac and Fannie Mae to hand out subprime loans. Chris Dodd, Obama, and others for taking tens of millions (Obama placed second at 90 Million dollars) of dollars from Freddie. The dems milked Fannie and Freddie. They also ran congress.
When people couldn’t pay off their loans, the money dried up. Banks didn’t want to lend other banks money. Without the flow of money between banks, our economy ground almost to a halt.
Then you have Obama, who flippantly says he will tax the bejesus out of us. So investors are withdrawing from the stockmarket in hordes, shocking the economy.
Obama is very involved with screwing up our economy already. He’s not even the president yet.
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#12 by Brokeback Brady on June 23, 2010 - 4:48 am
The greedy american who bit off more then they can chew!
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#13 by Keith on June 23, 2010 - 4:50 am
http://www.factcheck.org/elections-2008/who_caused_the_economic_crisis.html
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