subject: A Small Business Loan Expert Might Be Needed [print this page] The use of a small business financing expert is a prudent step for commercial borrowers to take in view of continuing business lending difficulties since such advanced help is usually a good idea when faced with complex problems. What appears to be the most challenging commercial banking climate in several decades is currently impacting many small business owners.
Most small business owners have a very independent perspective when it comes to running their own business. It is normal for most small businesses to postpone seeking outside consulting help even when facing a business loan rejection by their banker. For some small business owners, it might not yet be obvious that many previous business finance options are no longer available from most traditional banks. Realizing that they have a commercial finance problem requiring outside advanced consulting help will often be an appropriate starting point for a business borrower to seek a small business finance expert. For most this realization will occur after being turned down for a commercial loan by their current bank and not knowing what to do next. Some business owners might have already had this experience and then unsuccessfully tried to find new financing. The last straw that prompts a call for expert assistance in a growing number of cases will be the decision by many banks to permanently stop making commercial loans to small businesses.
Finding an experienced and qualified working capital expert will have some potential pitfalls that should be anticipated. An important practical reality is that there are very few individuals or companies that are qualified to act in the capacity of a small business loan expert. Problem-finding and problem-solving are both essential components of an individual being asked to provide advanced help which can be used to formulate effective business financing options. These are generally scarce commodities in any field, but commercial financing has not been distinguished by an adequate stock of these skills that are so critical to the success of a business financing expert.
A large number of former residential mortgage consultants have no meaningful experience involving complicated commercial real estate loans but have still attempted to add small business loans to their line of products. Many borrowers do not realize how complicated small business financing can be. It is appropriate to seek a qualified individual who is engaged in it as a full-time occupation and not a part-time venture because it usually takes at least several years to master the field. Based on this observation, a strong emphasis should be placed on finding a suitable full-time expert in an established commercial financing business with extensive experience. When seeking advice about who to contact as prospective business financing experts, it will also be prudent to avoid a current banking relationship. This will eliminate potential conflicts of interest and also properly reflect that a bank which has already been less than helpful in making needed loans will not necessarily have a trustworthy recommendation.
Business owners should not lose sight of their immediate objective when seeking small business loan expert help. The purpose in using a small business financing expert is to ensure that all effective and practical commercial finance options are fully reviewed. It is essential that commercial borrowers receive thorough and candid advice before finalizing any working capital and commercial loan agreements.
