Small Business Loans

Practical Solutions for Obtaining Working Capital and Commercial Loans

Business Consulting for Small Businesses

by Stephen A. Bush

The process of obtaining commercial loans and working capital financing has become much more complex during the past several years. To further complicate matters, vast changes recently impacting financial and credit markets have made most business finance programs even harder to understand.

To deal with the growing number of real and substantial obstacles now imposed by virtually all commercial lenders, small business owners should be prepared to take aggressive action which will protect their own business interests. To swiftly and effectively address this situation, AEX Commercial Financing Group recommends that small businesses consider the use of a professional business finance consultant.

Business finance consultants that can provide comprehensive advice about current lending difficulties will be helpful for most business owners, but such commercial financing experts are not always easy to find. Without adequate information about what should be done to obtain small business loans in these extreme circumstances, business borrowers are rightfully frustrated and confused. Because of this difficult business financing climate, effective commercial finance and working capital finance advice has become a rare and valuable commodity.

Some very helpful and effective business finance advice is available at no cost, and business owners should usually start any search for help by reviewing such free advice first. Two notable examples of free resources which AEX Commercial Financing Group publishes online are The Working Capital Journal and The Commercial Mortgages Guide. However, the normal complexity of small business loans combined with a chaotic commercial lending climate is likely to increase the necessity of individualized commercial finance consulting assistance from a commercial financing expert such as AEX.

As mentioned above, such personalized business finance consulting help will not be as easy to find as might be expected. In many cases, commercial financing advisors are not willing to charge a fixed commercial finance consulting fee that requires them to spend more time and frequently offers them much less compensation than provided by lucrative loan fees that often vary from $5000 to over $10,000. If small business owners can find a commercial loan expert willing to provide these professional consulting services for a reasonable fixed fee, a likely cost range will be $1500 to $3000 for a basic but thorough consulting effort.

This is an appropriate point to mention that AEX Commercial Financing Group is one of a very small number of professional business finance consultants throughout the United States that has both REDUCED commercial loan fees as well as demonstrated their willingness to provide commercial finance consulting using a fixed fee arrangement that is affordable for most small business owners.

It is also important to note that AEX Commercial Financing Group does not charge ANY fees for several specific kinds of small business loans and working capital financing. In these situations, our compensation will be funded from the financing costs if and when we are successful in arranging satisfactory business financing.

One of the most important efforts that commercial borrowers should undertake with a qualified business finance consultant is to explore contingency financing options which might be necessary due to the current upheaval in financial markets. For many years I have advocated the importance of "always having a Plan B" for working capital financing and other business financing.

Now that many banks have routinely reduced or eliminated business lines of credit or recalled commercial loans, the true value of formulating contingency plans for small business loans and commercial real estate financing has become very apparent. When they are unprepared to do so, business owners will find it much more difficult to find alternative sources for financing. With a practical contingency financing plan, business owners will not be caught by surprise and will be ready to take quick action if their current commercial lender suddenly changes course and revokes existing commercial finance agreements.

Most small business owners are also likely to have their own areas of special interest in addition to a "Plan B" scenario to investigate with the help of a candid business finance consulting effort. Regardless of the specific topic, it will usually be beneficial for a business borrower to have a straightforward discussion with a small business loan expert.

These discussions should be considered as tantamount to "getting a second opinion" for refinancing of existing debt or acquiring new commercial financing. Until recently, surprisingly few business owners would have seen the point in paying even a modest consulting fee to get such a second opinion. Now that many banks have made it so painfully clear that they can make really big mistakes when the right questions are not asked beforehand, more and more commercial borrowers readily understand that they might need someone else looking out for their best interests.

We want to again emphasize that AEX does not charge ANY fees for most short-term working capital loans. So unless there are unusual circumstances requiring additional time, we will receive sufficient compensation when we successfully arrange suitable short-term commercial loans for small business owners. While we want to be paid for our efforts, we do not want to be over-paid or paid twice. Please call Stephen Bush to discuss whether we can help with your specific situation.

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