This business financing strategy article will describe the importance of avoiding “problem commercial lenders”. The article will NOT name specific lenders to avoid, but key examples will be provided to illustrate why prudent commercial borrowers should be prepared to avoid a wide variety of existing commercial lenders in their search for viable business financing strategies.

I have been advising business owners for over 25 years, and I have encountered many business financing situations which have involved commercial lenders that I would not recommend as a result. These problematic situations have especially involved commercial mortgage loans, business cash advance situations and unsecured working capital loans. As a direct result of these experiences and daily conversations with other commercial loan professionals, I do in fact believe that there are a number of commercial lenders that should be avoided. This conclusion is typically based on more than one negative experience or an obvious pattern of lending abuses.

I have published many commercial loan articles which are designed to assist commercial borrowers in avoiding business loan problems. One of the most serious business financing situations is a commercial lender that causes business loan problems for their commercial borrowers on a recurring basis. It is particularly this type of commercial lender which prudent commercial borrowers should be prepared to avoid unless viable alternative business financing options do not realistically exist.

Here are a few examples of why certain commercial lenders should be avoided.

BUSINESS FINANCING STRATEGIES AND COMMERCIAL LENDERS TO AVOID EXAMPLE NUMBER 1 – Yes or No?

I have published an article which discusses the tendency of many banks to say “YES” when they mean “NO”. Such banks will typically attach onerous business financing conditions to commercial loans instead of simply declining the loan. Business owners should explore other commercial loan alternatives before accepting business financing terms that put them at a competitive disadvantage.

BUSINESS FINANCING STRATEGIES AND COMMERCIAL LENDERS TO AVOID EXAMPLE NUMBER 2 – The Commercial Appraisal Process

For commercial real estate loans, commercial appraisals are an unavoidable part of the commercial loan underwriting process. The commercial appraisal process is lengthy and expensive, so avoiding commercial lenders which have displayed a pattern of problems and abuses in this area will benefit the commercial borrower by saving them both time and money.

BUSINESS FINANCING STRATEGIES AND COMMERCIAL LENDERS TO AVOID EXAMPLE NUMBER 3 – Think Outside the Bank

In smaller metropolitan markets, it is not unusual for a dominant commercial lender to impose harsher commercial loan terms than would typically be seen in a more competitive commercial financing market. Such commercial lenders routinely take advantage of a relative lack of other commercial lenders in their local market. An appropriate response by commercial borrowers is to seek out non-bank business financing options. It is neither necessary nor wise for commercial borrowers to depend only upon local traditional banks for working capital and business cash advance solutions. For most business financing situations, a non-local and non-bank commercial lender is likely to provide improved commercial financing terms because they are accustomed to competing aggressively with other commercial lenders.

BUSINESS FINANCING STRATEGIES AND COMMERCIAL LENDERS TO AVOID EXAMPLE NUMBER 4 – Meaningless Pre-approvals

Commercial borrowers frequently want a commercial lender to approve their commercial loan at the earliest possible point. The assumed benefit to this early business loan approval is that it will enable the commercial borrower to make other business plans which depend on the business financing being finalized.

Because an ethical commercial lender will treat any form of an approval very seriously, commercial borrowers should expect that a meaningful version of such an approval will not be realistically possible in just two or three days. Nevertheless there are commercial lenders who provide their own special version of a pre-approval within just a few days of receiving preliminary application information. Because this abbreviated approach to pre-approvals almost always produces unexpected surprises for the commercial borrower as the business financing process goes forward, commercial borrowers need to be extremely wary of any commercial lenders that take this approach.

Why do some commercial lenders provide such meaningless pre-approvals? There are two likely reasons. (1) To motivate the commercial borrower to stop considering other potential commercial lenders. (2) To provide a pre-approval that is similar to a structure prevalent with residential mortgage loans. Since many business loans are arranged by residential mortgage brokers who are frequently unfamiliar with common business financing procedures, this reason will be especially applicable when dealing with commercial lenders that specialize in dealing with residential mortgage brokers.

Copyright 2005-2007 AEX Commercial Financing Group, LLC. All Rights Reserved.

So many people wants to start investing in property but dont know where to start. Experienced buyers will tell you that you should contact financial institutions and let them handle your property finance for you. That is very true. You should use other peoples money to finance your property.

Investors also advise new comers not to put all their money in one single property. The ideal is to have a number of properties so that the risk youre taking is reduced. Obviously not everyone can start investing in more than one property. Therefore you have to take that first step and buy your first piece of real estate. Remember that you must do your homework on which property to buy. Buying something that everyone else has is a bad decision.

These days mortgage houses and other financial institutions offer property finance of up to 90% of the total value. Property financing has become a dynamic business where investors and lenders have to keep up with laws and credit bureaus. While you are able to get finance of up to 90% you still need to convince the lender that you will be able to cover the monthly payments.

The benefits of property finance are by far better than financing it yourself. This fact can be easily illustrated with an example. Lets say the value of the property is R1000 000. You can either use your pension money or money you saved to pay the property in cash which will cost you R1000 000 out of your pocket. Or you can put down a deposit of lets say R100 000 and get property finance of R900 000. After one year you sell your property for R1400 000 which is market related because you did your homework when you bought the property. You paid R9000 per month on your mortgage. After the one year your total cost will be R208 000 (R100 000 + R108 000). R400 000 minus R208 000 = R192 000 profit. Without property financing your return on investment would have been 40% but because you financed your property your return on investment is 200%. That is how investors get rich.

Lenders that finance property up to 90% will either give you a fixed-rate or adjustable-rate loan. These financial institutions have to make sure youre able to make your monthly obligations and that is why they verify your personal information such as your source of income, asset value, savings, market value of the property youre financing etc. The interest rate which you will get depends on all of these factors.

When you choose a financial institution that will finance your investment property or personal property make sure that you are familiar with the terms of the agreement. You need to know exactly how much youll me paying each much and if there are clauses such as prepayment penalties etc.

The point is this. You should let other people finance your property. Property financing will be the key to financial freedom in your investing career. Do your homework when deciding which property to buy even if it takes you a year to find the perfect one. Its not like youre going to buy a house every month anyway. Well, at least not when youre starting out.

Purchasing a brand-new, 2008 vehicle may seem like an attractive holiday buy, but many new car owners are unaware of the various kinds of auto loans available right on the Web. Some auto loan providers give you direct access to loans and offer instant approvals, so you can buy your dream car without too many worries. However, before choosing an auto loan online, keep these tips in mind:

• Know your credit score: If it isn’t the best, opt for an auto loan service that isn’t too choosy. For example, Funding Way’s Auto Credit Express has more lenient credit requirements than other auto loan providers.

• Consider timing-the end of the year is a great time to purchase vehicles from the previous year: they’re still new, but dealers want to focus solely on those ’08-tagged cars, leaving you with possible savings!

• If you’re not happy with a current auto loan rates, consider auto loan refinance. It’s similar to home mortgage refinance, but on your vehicle.

• If your auto loan interest rates are high, don’t get discouraged! If you faithfully make your payments on time and monitor your credit score, you’ll be able to lower your rates with time.

• If you have your heart set on a pricey ride, consider a more cost-effective option. This will not only save you on auto loan rates, you’ll be in a better position of auto loan approval.

• Shop around: consider filling out an auto loan application on several provider’s websites. That way, you’ll get a complete feel for what you can afford.

Buying a new car is a growing trend, with numbers last year indicating a great leap in six-year loans, according to the Consumer Bankers Association. If you don’t like the idea of leasing and don’t have a blank check to pay a new car balance in full, 6Star Reviews reports that some auto loan providers such as Capital One offer instant approval, as well as versatile loan periods.

Cars Direct gives customers access to manufacturer deals and rebates, as well as loan calculators and car-buying resources. Obtaining an auto loan has never been easier, especially with the help of auto loan services.

There have been some disappointing and unexpected actions taken by commercial lenders in response to recent financial events. This changing environment for business finance funding is likely to produce several new problems for commercial borrowers. To assist small business owners in their efforts to keep up with these imposing challenges, The Working Capital Journal is one of several commercial financing information resources which should be reviewed regularly. The working capital finance industry has primarily been operating on a regional and local basis for many years. In response to cost-cutting that has permeated many industries, there has been a consolidation that has resulted in fewer effective commercial lenders throughout the United States. Most business owners have been understandably confused about what this might mean for the future of their commercial financing efforts, especially because this has happened in a relatively short period of time. Of course, for some time there have been ongoing complex problems for commercial borrowers to avoid when seeking commercial loans. But what has produced a new set of business finance funding problems is that we appear to be entering a period which will be characterized by even more uncertainties in the economy. Previous rules and standards for commercial financing and working capital finance are likely to increasingly change quickly, with little advance notice by business lenders. Business owners should make an extended effort to understand what is happening and what to do about it due to this realization that substantial changes are likely throughout the United States in the near future for commercial finance funding. At the forefront of these efforts should be a review of what actions commercial lenders have already taken in recent months. The Working Capital Journal is one prominent example of a free public resource that will facilitate a better understanding of the responses by business lenders to recent economic circumstances. By publicizing actions taken by commercial lenders, this will contribute to these two goals, both of which are likely to be helpful to typical business owners: (1) To highlight controversial bank-lender tactics with a view toward reducing or eliminating questionable lending practices. (2) To help business owners prepare for commercial finance funding changes. Sources that currently include The Working Capital Journal are actively encouraging business owners to describe and report their financing experiences so that they can be shared with a broader audience to assist in this effort. Some of the most significant commercial financing changes reported so far by commercial borrowers involve working capital loans, commercial construction financing and credit card financing. A notable situation of concern is that predatory lending practices by credit card issuers have been reported by many business owners. Some specific businesses such as restaurants are having an especially difficult time in surviving recently because they have been excluded from obtaining any new business financing by many banks. One of the few recent bright spots in business finance funding, as noted in The Working Capital Journal, has been the continuing ability of business owners to obtain working capital quickly by business cash advance programs. For most businesses accepting credit cards, this commercial financing approach should be actively considered. Business cash advances are literally saving the day for many small business owners because most banks appear to be doing a terrible job of providing commercial loans and other working capital finance help in the midst of recent financial and economic uncertainties. For example, as noted above, restaurants are virtually unable to currently obtain commercial finance funding from most banks. However, if a restaurant accepts credit cards in their business operations, they are likely to be able to obtain needed cash from merchant cash advances and credit card factoring.