AEX Commercial Financing Group
SBA Loan Problems
Most commercial borrowers who have attempted to use SBA financing have later expressed significant frustration with the entire process. With the recent shakeout in commercial lending, small business owners in most cases have even more reasons to be disappointed with SBA business loans.
Some of the regular frustrations are related to the extensive paperwork required by the Small Business Administration. We are not here to suggest that we can reduce the documentation required for SBA loans. In fact, we go out of our way to make sure that our clients understand in advance that the SBA finance process is almost always longer than anyone would hope for and that the paperwork is unfortunately a normal part of any business lending program that involves multiple parties that include a government entity like the SBA.
A much bigger problem (than the paperwork) for most SBA loans is finding an SBA lender that both understands the entire lending process AND can fund the SBA loan in a prudent manner for the borrower at the end of the process. We talk to business owners on a daily basis who have been taken advantage of by unscrupulous lenders during the SBA lending process. This is truly a problem that is getting worse instead of getting better.
Small business loans have always been more complicated than realized by most business owners. A prudent approach to working capital financing and commercial loans is becoming more difficult for most commercial borrowers. Recent commercial financing uncertainties involving commercial mortgages and SBA loans have added significantly to the complexity of the entire commercial lending process. Although commercial borrowers should be able to find extensive written information about commercial finance difficulties from internet sources, there are two suggested precautions to observe in this approach to researching business finance issues —
(1) Because of the complicated nature of small business loan underwriting, there is really no substitute for an individualized discussion between a commercial borrower and a knowledgeable SBA business loans advisor. Prudent business owners should insist on detailed and personalized interactions with a working capital funding expert before finalizing their commercial loan decisions.
(2) Most SBA loan strategies are highly likely to be more complex than expected by commercial borrowers. Although written sources can identify general commercial loan problems for business owners to anticipate, there will usually be specific complexities that require more detail than can be provided in a generic article.
If you are a business owner considering an SBA loan or refinancing an SBA loan, please contact us to determine if AEX Commercial Financing Group can help.
SBA Loan Refinancing
One of the major drawbacks of an SBA loan has historically been the difficulty of refinancing the SBA business financing later. Recent developments have changed this business loan situation so that it is now more practical to refinance an SBA loan. It is still accurate to say that refinancing is not routinely available, but more importantly it is much easier to obtain than it was in prior years.
As with other AEX Commercial Financing Group services, SBA loan refinancing programs (as well as our time and advice) are designed to assist commercial borrowers and NOT commercial mortgage brokers or residential mortgage brokers. In keeping with this policy, SBA Loan services through AEX are available ONLY to a business borrower and their accounting - legal - business advisors and are NOT available to residential mortgage loan brokers or commercial mortgage loan brokers.
Because AEX specializes in difficult SBA loan - SBA loan refinancing and other complex commercial loan situations, it is important that we have direct communication with the commercial borrower from the earliest possible point of the business financing process. Borrowers who need help with difficult business loan and SBA loan situations should contact AEX Commercial Financing Group for working capital management advice and assistance.
Online Commercial Loan Applications
We want to provide a precautionary statement about the increasing use of online commercial mortgage and business financing applications. AEX Commercial Financing Group and Stephen Bush STRONGLY advise business borrowers NOT
to complete an online business finance funding application.
Online business financing applications are designed to encourage commercial borrowers to provide personal and business data to a lender before it is appropriate to do so. We are
referring to business finance sites that urge borrowers to "Fill out
our easy application!" before a borrower has even spoken to the lender. For many reasons, AEX does not make such an application available on our
websites. Our perspective is that a commercial borrower should never submit any application (online or otherwise) until after the borrower has a lengthy working capital management discussion with an experienced
business finance advisor to determine that a business loan is feasible for their specific business situation.
Small Business Loan Articles
Seven Words to Describe Working Capital Advances — Our use of concise business finance explanations has also been employed in a number of other reports such as "six more words about business financing". This report provides a series of seven-word descriptions about working capital advances. This specialized commercial finance approach is probably not well understood by most business borrowers. Business cash advance programs are emerging as one of the few effective working capital options for small business owners, and this article will offer a straightforward overview of some important factors that should be considered when evaluating this strategy.
Describing Commercial Real Estate Loans in Seven Words — This report was intentionally structured to produce a concise overview of pertinent commercial mortgage financing issues by describing difficulties likely to be encountered with commercial real estate loans in seven words. A review of commercial financing reports such as "six more words about working capital" and "seven words describing merchant cash advance options" should also contribute to a more complete understanding of the practical small business finance options necessary to cope with one of the most chaotic commercial banking climates seen in decades.
