Sbi Gets Permission To Lend In Yuan

Posted on September 6, 2010

Sbi Gets Permission To Lend In Yuan

The State bank of India, the country’s largest bank, has been given permission by the People’s Bank of China, China’s apex bank to lend in yuan, the local currency from March 15, 2010. The State Bank of India which set up operations in China about 10 years ago, has become the first Indian bank to gain the approval, a coveted achievement, considering the rigorous qualification process.

Signaling the strengthening economic ties between the two nations, Mr. Sasikumar, Chief Representative, State Bank of India in Shanghai told Inchin Closer “our being able to lend in Yuan will greatly benefit Indian companies as most of them have corporate relationships in India with State Bank of India”  Indian company’s borrow roughly 700 million yuan from Chinese banks for their operations in the mainland, State Bank of India is now hoping to capture a majority of this pie.  State Bank of India lending rates will be linked to the People’s Bank Of China lending rates  based on the risk assessment of the borrower, Sasikumar added.

The bank currently has a branch office in Shanghai and a representative office in Tianjin, north-east of Beijing. As part of their expansion plans, State Bank of India hopes to upgrade their Tianjin office to a branch and is looking at opening another branch in the Pearl River Delta, where a majority of Indian traders operate. According to People’s Bank Of China regulations, a foreign bank has to oprate as a representative office in China for more than three years before it can gain permission to open a branch office.

INCHIN CLOSER is a professional services consultancy that offers multinational clients support prior to and post incorporation in both India and China. Having lived and worked extensively in both nations, our experts believe there is a strong link between doing business in a foreign country and understanding their culture, as a result, we at INCHIN CLOSER aim to provide you with a 360 degree service enabling you to understand the business and cultural aspects of INCHIN better.

In order to know more about each service, please do visit the relevant page on our website or write to us directly at contact@inchincloser.com.

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Prepare Your Business For The New Lending Market

Posted on September 6, 2010

Prepare Your Business For The New Lending Market

Prior to the financial meltdown in 2008, business lending was pretty easy.  Walk down to your bank – meet very minimal criteria (did not matter to the bank as they would sell off your loan and collect fees) and you could walk out with enough capital to run your business for several years.  In fact, there were even low document or no document programs and even programs where you did not have to show any means what-so-ever of repaying the loan – simple.

Not so simple today.  Although banks would love to go back to those days (it was easy and cheap money for them via fees) it does not look like we will return to that type of lending market any time soon.

First, banks and bankers are now under intense scrutiny from their own customers and other shareholders.  No one who has a stake – either an investment or deposit relationship – wants their bank or financial institution to fail.

Second, the federal government (supposedly) has stepped up their overview of these institutions and with their current push for socialization, most bank’s management are fearful that one wrong step could lead to a quick and absolute government takeover.

Regardless of the reasons (justified or not) – the bottom line is those days of easy credit are gone.

Interestingly, SBA loans (government guaranteed loans – currently up to 90% of the loan amount with reduced borrower fees) have been making a come back – inline with the liquidity of some banks.  That is good news for small business owners.  However, the new rules (created out of the Recovery Act of 2009) are about to expire – but should be reinstated for another 6 or 7 months – again more good news for business owners.

But, what still remains is the fact that this economy has hurt most small and medium businesses – hurt them to the point that they still will not qualify for any bank financing – not in this current lending market.  Credit scores (business and personal) are in the toilet.  Income is down while expenses are up meaning that positive cash flow to service debt is nearly nonexistent. Both items that were over looked in years past but matter once again.

However, it is still not too late.  Prior to the meltdown, banks would either ignore or modify their policies to fit the borrower.  You have good credit but no income – we will put you in this program that does not require income verification.  Have good income but bad credit – we will just simply ignore your credit (they sold the loans off anyways).

With this new lending market – these scenarios just will not happen any more.  Banks have reverted back to their solid lending policies and will now follow them to the letter.  But, that does not mean that you, the business owner, cannot work NOW to improve your situation before applying for that need loan.

My suggestion:  Call around to banks and other financial lenders.  Ask them about their policies or guidelines or their minimums regarding credit, cash flow and collateral.  Then, evaluate your situation – determine where you are lacking and work now to fix it.

Example, if your credit (and all financial lenders will pull your personal credit) is bad – find ways to improve it.  Look into consolidation.  Bring past due accounts current.  Pay down some of that outstanding debt.  Work with the three major bureaus to remove information or items that may not belong to you.

If your cash flow is limited, work to improve.  If you cannot find cheap (low cost) ways to improve revenue then work the other side and reduce costs.  A dollar decrease in over all costs is just a valuable as a dollar increase in revenue.

There must be hundreds of ways to improve yourself and your business – you just have to be willing to put in the time and make the hard choices – now.  If you can’t show that you are committed to the growth and prosperity of your business today, then why would a bank believe that you will be later – when they expect repayment?

The idea is to do it now when you are not in the market for capital instead of waiting until you actually need a loan and finding out you don’t qualify.

Joseph Lizio holds a MBA in Finance and Entrepreneurship, is the founder of Business Money Today, has a strong commercial lending background and is regarded as an expert in business and finance.

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Sba Doubled Its Lending Programs For Small Businesses

Posted on September 6, 2010

Sba Doubled Its Lending Programs For Small Businesses

In this recession period the lending market was almost on its back foot, at least it was so for many small businesses. The banks and the other financial institutes were very much reluctant to extend credit lines to small businesses. As a result the angel and other private investors have gained more control over the market by extending credit lines to those businesses which were declined by the banks and other financial institutes at a higher interest rate. In fact, it has been noticed that a large number small sized companies, be it an online service provider or a manufacturing company, have opt for private financial even at a higher interest rate to meet their business requirements in this bad economic time.

Considering the situation, the Small Business Administration (SBA) has doubled their lending program in the past three months so that the small business owners can meet their need without paying more interests to the private investors. During the second fiscal quarter of Small Business Administration the 7(a) lending program of the governments processed around 16,558 loans. This figure is more than double the number of loans that it processed during the first three months of the year 2009, when this body lent out .6 billion. This time the total loans provided under the SBA 7(a) program amounted to .7 billion.

This lending programs, as the SBA and the federal government claimed, will help the small businesses not only to survive in such a cutthroat competitive market but will also help in creating new job opportunities. The latter, as President Obama promised, is the prime focus of the government. Moreover, the government estimated that it is the small business owners and their firms who have created around 65% of the new job opportunities over the 15 years in America. Thereby, it is now the responsibility of the government to support the small businesses during this bad economy so that they can continue creating new job opportunities all across the country.

Better yet, the government also provide a 5 million funding pool, as a part of the Recovery Act which was passed in February 2009, to eliminate fees for the SBA loans temporarily. Moreover, the portion of the loan guaranteed by the government is increased to 90%. This signifies that the federal government will provide major portion of the loan in case the small business owner fails to pay back the amount. This further reduces the risks for the lenders and simultaneously will roar up the lending market.

The terms of SBA 7(a) program is favorable for both the lenders and the borrowers. And the President has sanctioned an additional million for extending the program for the month of April as the SBA ran out of funding at the end of March.

Thereby the small businesses that require funds to continue with their day to day operations must consider the SBA 7(a) program as their first option. Those who have been declined by banks and other financial institutes must also think about this option. However, the only problem is that there is a huge demand for such loans and you need to be very quick in your action. The good news is that this Recovery Act loan have already provided over billion to small businesses and are willing to provide more funds to support the program.

Emily Ralph is an independent small business consultant who advises and counsels small business owners and helps them. To access more information about small business manufacturer, Free Tenders and b2b buying leads visit http://www.hellotrade.com.

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April sees fall in mortgage lending

Posted on September 5, 2010

April sees fall in mortgage lending

The total amount of money borrowed in new mortgages dropped back in April.

The Council of Mortgage Lenders (CML) revealed that £10.2bn was lent to both home buyers and other borrowers, 12% less than in the previous month, marking the lowest figure recorded in any April in the last decade.

Figures from HM Revenue & Customs also highlighted the subdued nature of the property market, showing a slight fall in completed sales in April, down 2,000 from March to 71,000.

In the first four months of 2010, Home sales in the UK were up 26% compared with the same period last year, although this is still almost half the level recorded before the banking crisis years between 2005 and 2007.

The CML pointed out that Easter falling in April this year had led to a seasonal dip in lending, but did recognise that borrowing in the mortgage market was still slow compared with previous years.

Gross mortgage lending was 6% lower in the first four months of the year compared with the same four months last year.

“There have been signs of increased mortgage availability in recent months, with higher loan-to-value mortgages becoming available and rates falling slightly,” said the CML.

“But it remains a difficult market, particularly for first-time buyers without large deposits, and lenders continue to face funding challenges.”

Brian Murphy, of the Mortgage Advice Bureau mortgage brokers, highlighted the fact that the recent general election also caused the property market to remain sluggish for the past month.

“In April, many potential buyers held off to see what colour the new government would be and what potential impact there may be on housing and interest rate policy,” he said.

The Bank of England also underlined the subdued outlook for mortgage lenders in the latest edition of its monthly Trends In Lending publication, commenting that it was unclear whether lending would show any signs of recovery this year.

“Most major UK lenders continued to expect the stock of lending to pick up moderately in the remainder of the year, though some lenders noted the downside risks to their projections,” it said.

“Data from the major UK lenders indicate that their approvals for house purchase edged lower in April,” it added.

UK Price Comparison website http://www.which4u.co.uk Compares Credit Cards, Savings Accounts, Fixed Rate Bonds, Bank Accounts, ISAs, Loans, Mortgages, Insurance, TV & Broadband and Gas/Electric bills to find the best UK deals

Maxed Out: Hard Times, Easy Credit and the Era of Predatory Lenders (2006) is an independent feature-length documentary film and (2007) book that chronicles abusive practices in the credit card industry. Written and directed by James Scurlock, the film and book use interviews with creditors, debtors, academics, and others to illustrate its story. The film premiered at the South by Southwest Film Festival in Austin, Texas, USA, in 2006 where it claimed the Special Jury Prize. It went on to several film fests including Seattle, Full Frame Documentary, Maui, New Zealand, Milwaukee International, Woodstock, Bergen, Leeds International, Oxford and IDFA (Amsterdam) film festivals. It was released in movie theaters in select cities in the United States in March 2007 through Magnolia Pictures. The DVD was released nationally in June 7, 2007, in the joint effort Magnolia Pictures and Red Envelope Entertainment (a division of Netflix). The book Maxed Out is published by Scribner, a division of Simon and Schuster. It was published in March 2007 in hardcover and in December 2007 in paperback. Scurlock’s purpose for the film and book was to raise awareness of how credit and lending issues are affecting society. The main premises of the documentary and book are that banks and other creditors deliberately market to people who are more likely to have problems paying predatory lending and that the creditors benefit from connections to government, the debt collection industry, and from …
Video Rating: 4 / 5

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Private Mortgage Lending

Posted on September 5, 2010

Private Mortgage Lending

The good news: your home has equity. The bad news: you need a loan now, not in 5 weeks. Who comes to your aid in times of trouble? Family? Friends? Or could it be that you need the services of a private mortgage lending company?

When we get in to owning a home, we are taken through the steps of the home-buying process. The lender we deal with is conventional, representing a bank or financial firm that does this type of lending many times each business day.

Once we have the home loan in place, we are good to go. Later in life, sometimes things happen that we don’t plan for or could not have planned for but happened. Often, such happenings involve money we don’t have. We can choose to look at our options by again tapping the conventional lending well. That may be fine for most of us. But it is time consuming and exposes us to the review of our life from an economic standpoint. We might be out 6 weeks before we get the loan. Maybe that is too long. By contrast, private mortgage lending is a fast process. It is unregulated for the most part and it considers only equity in your property as the basis by which you can get a loan or not. Your credit standing and income are not considered. With sufficient equity, there should be no issue and you will be approved for the loan amount needed.

From a practical standpoint, you need to consider if having a loan fast is fundamental. The pros of that are obvious; faster money in your hands. The cons though include the rather high interest rate of near 18 percent in many cases and the short, high repayment schedule of only two years or less in most cases. If your need of the funds from private mortgage lending proves to be the best course of action, be prepared to have your property further encumbered for the time you have the loan and do not fail to repay the funds per the outlined repayment schedule.

Sometimes Private Motgage Lending can be a better solution for overcoming the frustrations of finding the right loan for your personal and business needs. The application process is long and detailed. Only after weeks of waiting might you find that your loan has been denied. Private Motgage Loans can provide faster access to loan approval and funds.

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Private Lending Secrets – The Top 3 Reasons Why Private Lending Is The Key To Real Estate Investing

Posted on September 5, 2010

Private Lending Secrets – The Top 3 Reasons Why Private Lending Is The Key To Real Estate Investing

When I first got into real estate investing I was always using my own money to pay for everything including the 20% down payment of the purchase price, rehab costs, closing costs and all the other cost that came up unexpectly. It did not take long to drain my bank accounts with this plan.

This is where I knew I had to have another plan or my real estate investing business was going to come to quick halt. I finally started utilizing private lenders. these lenders would help me fund my down payments, some or all of my rehab costs and even some of the loans costs. I finally had a way to buy real estate without using much or even any of my personal funds.

What is the importance of private lending? The answer is using private lenders to fund your real estate deals. Private lending is a consistent source of funds to purchase real estate deals that you can go back to again and again and again. In fact, the more you use, the more will become available as you develop relationships with more private lenders.

Having the ability to fund all of your projects with private lending is critical to a real estate investors success in this business.

There are three great reasons for using private investors to fund your real estate deals and allow you to grow your investment business.

First, utilizing private lenders will free up your cash to be used for new deals and for making offers versus such things as down payments, rehab costs, and all the costs associated with acquiring a piece of investment real estate. Now you can focus on new deals with your money and use your private lenders to fund the deals you have under contract.

Secondly, private lending is really the only game in town at this time. It very hard, if not impossible for the average real estate investor to get traditional loans from bank or saving and loans with great credit and at least 40% down payment. Hard money lenders are a thing of past as the credit crisis has wipe most of them out. So you are left with private lenders as the only real dependable source of loans to buy investment real estate.

Third, the benefits of private lenders is that the money is relatively cheap at 9% to 15% versus hard money at 25% or more. The documentation and forms are very simple and only require 4 documents to close a private lending deals versus a bank loan with over 4 inches of paper. Lastly, and most important there are no personal guarantees w

I invite you to learn more about Private Money Lending and get my new FREE 20-page ebook titled “Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!” by clicking here http://realestatewealthtoday.com/FREE-eBook.html .
Mike Lautensack is a full-time real estate entrepreneur and creator of the Private Lending Presentation Kit. To learn more about this kit go to Private Lending Presentation Kit.

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Private Lending Secrets – The Top 3 Reasons Why Private Lending is the Key to Real Estate Investing

Posted on September 5, 2010

Private Lending Secrets – The Top 3 Reasons Why Private Lending is the Key to Real Estate Investing

When I first got into real estate investing I was always using my own money to pay for everything including the 20% down payment of the purchase price, rehab costs, closing costs and all the other cost that came up unexpectly. It did not take long to drain my bank accounts with this plan.

This is where I knew I had to have another plan or my real estate investing business was going to come to quick halt. I finally started utilizing private lenders. these lenders would help me fund my down payments, some or all of my rehab costs and even some of the loans costs. I finally had a way to buy real estate without using much or even any of my personal funds.

What is the importance of private lending? The answer is using private lenders to fund your real estate deals. Private lending is a consistent source of funds to purchase real estate deals that you can go back to again and again and again. In fact, the more you use, the more will become available as you develop relationships with more private lenders.

Having the ability to fund all of your projects with private lending is critical to a real estate investors success in this business.

There are three great reasons for using private investors to fund your real estate deals and allow you to grow your investment business.

First, utilizing private lenders will free up your cash to be used for new deals and for making offers versus such things as down payments, rehab costs, and all the costs associated with acquiring a piece of investment real estate. Now you can focus on new deals with your money and use your private lenders to fund the deals you have under contract.

Secondly, private lending is really the only game in town at this time. It very hard, if not impossible for the average real estate investor to get traditional loans from bank or saving and loans with great credit and at least 40% down payment. Hard money lenders are a thing of past as the credit crisis has wipe most of them out. So you are left with private lenders as the only real dependable source of loans to buy investment real estate.

Third, the benefits of private lenders is that the money is relatively cheap at 9% to 15% versus hard money at 25% or more. The documentation and forms are very simple and only require 4 documents to close a private lending deals versus a bank loan with over 4 inches of paper. Lastly, and most important there are no personal guarantees with private lenders like bank money or hard money lenders.

I invite you to learn more about Private Money Lending and get my new FREE 20-page ebook titled “Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!” by clicking here http://realestatewealthtoday.com/FREE-eBook.html .
Mike Lautensack is a full-time real estate entrepreneur and creator of the Private Lending Presentation Kit. To learn more about this kit go to Private Lending Presentation Kit.

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Recent Changes in Truth in Lending Acts-What to Expect in the Revisions

Posted on September 4, 2010

Recent Changes in Truth in Lending Acts-What to Expect in the Revisions

There are certain modifications applied in the Truth in Lending Acts or TILA in the real estate industry, particularly in mortgage loans. Effective July 30, 2009, loan applications by eligible borrowers are subject to compliance with the new regulations implemented in the TILA requirements.

What is Truth in Lending Acts?

Basically, Truth in Lending Acts is a federal law that is quite related with the good faith estimate, only having slight differences in the comprehensive and detailed information it provides. Some of the salient information included in TILA are the monthly payment, loan tenure, the annual percentage rate or APR and the loan amount. These information are comprehensively provided by the lender in order to include in the credit contract that is duly signed by the buyer and lender at the culmination of their transaction.

What are the modifications?

The changes in the Truth in Lending Acts are mainly on the new disclosure requirements for the applied mortgage loan of the consumer. The Federal Reserve Truth in Lending Regulation applies its revised laws for loans filed and submitted on or after July 30th 2009. Most lenders find the revised version of the TILA quite complicated and challenging, oftentimes causing delays for the supposedly swift transaction between buyers and sellers.

Here are some of the highlighted changes included in the Truth in Lending Acts revisions.

Good faith estimates including the costs of the mortgage loans must be provided by the lenders within three working days after the borrower applied or filed the loan. This is for the primary purpose of an early disclosure. In line with this proposal, there should not be any fee collections aside from the reasonable charge on the acquisition of the credit report. Furthermore, the closing of the mortgage loan needs to stand for a seven day waiting period, which is after the receipt of the early disclosure. For the annual percentage rate or the APR, any changes that may result to more than 1/8 or 0.125 percent of the loan must be provided by the lender in the corrected disclosure given to the borrower. To make sure that there are no other need for the corrected disclosure, the lender must accurately include not just the interest rate but other fees incurred for the settlement of the loan. Borrowers can shorten or waive the said allotted waiting periods of three and seven days depending on the authenticity of their reason. The waiver for this intent is provided for those considered bona fide cases of personal financial emergency. However, the federal government is quite firm on its stance in imposing that only those classified genuine reasons are qualified to waive. Waivers are likewise not intended for any other purpose especially for mere convenience.

Various commentaries and views are aired out by real estate agents, lenders and home buyers towards these changes. Whether positive or negative, the bottom line for such modifications in the federal law is to give more system in loan application to boost the industry.

If you want to learn more about Truth in Lending Acts, you may check MLS Real Estate in Desert Hills for comprehensive details. Other real estate information are accessed through See Desert Hills Homes for Sale.

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Excellent Tips for Lending Money

Posted on September 4, 2010

Excellent Tips for Lending Money

Indeed, you’ll become more efficient with each experience with a client. You’ll soon recognize which proposals to concentrate your attention on, and of course, which ones to scan briefly and hand back to a loan seeker. The more you deal with money professionals, too, the sharper you’ll become – and consequently, the more money you will make.


Money professionals know what types of loans are possible or likely from each of their different funding sources; thus, they’ll present only those having the best chances of success. You will quickly become well versed in the current lending and investment trends, and acquainted with the lending rates and requirements of your loan sources. As you review, assist and put together each of the request-for-money proposals, your knowledge will improve your ability to package specific requests, and to ‘sell’ a loan proposal. Just keep in mind that every time a loan is approved, or when one of your sources decides to invest in a client’s business, you’ll be taking a financial cut right off the top.


Right here I’d like to assure that you don’t have to be either a financial genius or a super sales person. All you really have to know is how to put together a proposal properly, and acquire a list of sources interested in lending money or investing in a venture to obtain a profit.


You’ll find that most of the borrowers you sign to assist in finding money for are unaware that they will have very little if anything to say about the terms of the loan that may be finally granted. You’ll find that most of them are already convinced that they have the ultimate idea for a business that will make everyone involved rich. Almost all of them are trying to get started with little or no money of their own, and they’ll think that whatever the prevailing interest rate, it’s too much.


Your first chore will be to screen these people. Explain the facts of life to them, and don’t waste your time with them if you have the feeling they’ll reject or refuse to accept a loan you line up for them because of interest rates. If they’ve been to most of the regular loan sources in your area, they’ll know that when they want or need money, it’s the lender who dictates the terms of the loan. A prospective borrower soon learns the prime rate that is published is almost never used. Actually, the prevailing prime rate plus two percent is generally a good rate of interest for most small businesses. In most cases, such loans have to be well secured with collateral not associated with the business.


Most of your would-be borrowers will not qualify for the prime plus two percent rate. Business experience, coupled with the type of business involved, will almost always put them in the “high risk” loan category. After you have your retainer fee, you have to educate your would-be borrowers in this regard. For those who cannot face the facts of life about interest rates, you have to just forget.


Something else you’ll have to convince your clients of: If he says he’ll give up a share of his business in exchange for the use of your investor’s money, he’ll have to give up a very large share. Most small business investment corporations or private investors will want at least 25 percent, and more often than not, up to 49 percent. In some cases, where a half million dollars or more is provided by the investor, he may (reasonably) ask for as much as 70 to 80 percent. Thus it’s absolutely essential that you learn to qualify your would-be borrower before you get too deeply involved or waste too much of your time.


For those who can’t or don’t want to pay your retainer fee – I say skip them. And those who can’t or don’t want to pay the high risk interest rates when you let them in on the real facts of life – forget them too. And those that have been turned down by practically every lending institution in the country, I would advise you – let some beginner gain practice on them. And these are the ones you need to learn to spot while you are a beginner.

Uchenna Ani-Okoye is an internet marketing advisor.

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What Went Wrong with Commercial Lending and Business Financing?

Posted on September 4, 2010

What Went Wrong with Commercial Lending and Business Financing?

By exploring what went wrong with commercial lenders and small business financing, business owners will be better prepared to avoid serious future problems with their working capital financing and commercial real estate financing. This is not a hypothetical issue for most commercial borrowers, particularly if they need help with determining practical small business finance choices that are available to them. Business owners should be prepared for the banks and bankers who caused the recent financial chaos to say that nothing has gone wrong with commercial lending and even if it did everything is back to normal. It is hard to imagine how anything could be further from the truth. Commercial lenders made serious mistakes, and according to a popular phrase, if business lenders and business owners forget these mistakes, they are doomed to repeat them in the future.

Greed seems to be a common theme for several of the most serious business finance mistakes made by many lending institutions. Unsurprising negative results were produced by the attempt to produce quick profits and higher-than-normal returns. The bankers themselves seem to be the only ones surprised by the devastating losses that they produced. After two years of trying unsuccessfully to get someone else to pay for their errors, the largest small business lender in the United States (CIT Group) recently declared bankruptcy. We are already seeing a record level of bank failures, and by most accounts many of the largest banks should have been allowed to fail but were instead supported by artificial government funding.

When making loans or buying securities such as those now referred to as toxic assets, there were many instances in which banks failed to look at cash flow. For some small business finance programs, a stated income commercial loan underwriting process was used in which commercial borrower tax returns were not even requested or reviewed. One of the most prominent business lenders aggressively using this approach was Lehman Brothers (which filed for bankruptcy due to a number of questionable financial dealings).

Bankers obsessed with generating quick profits frequently lost sight of a basic investment principle that asset valuations can decrease quickly and do not always increase. Many business loans were finalized in which the commercial borrower had little or no equity at risk. When buying the future toxic assets, banks themselves invested as little as three cents on the dollar. The apparent assumption was that if any downward fluctuation in value occurred, it would be a token three to five percent. In fact we have now seen many commercial real estate values decrease by 40 to 50 percent during the past two years. For banks which made the original commercial mortgage loans on such business properties, commercial real estate is proving to be the next toxic asset on their balance sheets. In contrast to the government bailouts to banks having toxic assets based on non-performing residential loans, it is unlikely that banks will receive similar financial assistance to cover commercial mortgage problems. As a result, a realistic expectation is that such commercial finance losses could produce serious problems for many banks and other lenders over the next several years. Much to the dismay of all business owners and as mentioned in the next paragraph, many commercial lending programs have already been dramatically reduced.

An ongoing problem is illustrated by misleading lender statements about their small business financing activities. While many banks have routinely indicated that they are providing business financing on a normal basis, the actual results by almost any standard indicate otherwise. It is obvious that lenders would rather not admit publicly that they are not lending normally because of the negative public relations impact this would cause. Business owners will need to be skeptical and cautious in their efforts to secure small business financing because of this particular issue alone.

There are practical and realistic small business finance solutions available to business owners in spite of the inappropriate commercial lending practices just described. Due to the lingering impression by some that there are not significant commercial lending difficulties currently, the intentional emphasis here has been a focus on the problems rather than the solutions . Despite contrary views from bankers and politicians, collectively most observers would agree that the multiple mistakes made by banks and other commercial lenders were serious and are likely to have long-lasting effects for commercial borrowers.

Stephen Bush and AEX Commercial Financing Group provide small business financing options for working capital loans, merchant cash advances and commercial real estate loans throughout the United States.

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