Whatever It Takes – Obtaining Small Business Loans

by

Allan Michael Taylor

This report is meant to be a short survival guide for those business owners who are interested in obtaining small business loans. The need for adopting guerrilla loan methods has been made worse by the diminished performance of commercial banks in offering worthwhile financial programs for businesses. While the actions suggested herein may normally be considered only when there are no other options available, they actually should probably be considered by most commercial borrowers early on in the search for commercial financing since banks are increasingly unable to offer a normal level of business funding.

Business Consulting as a First Line of Defense Simply put, the present commercial lending climate is not suited for newcomers who will have to cope with difficult finance programs targeted to small businesses as well as banks that are currently functioning irregularly. Employing an expert who can serve as a business consultant with an expertise in commercial finance should be thought of as an option for those business owners looking to increase their knowledge base substantially. A business consultant experienced in the ways of overcoming small business loan problems is a pragmatic solution to a situation that most commercial borrowers would admittedly prefer did not exist in the first place. Although you may pay a fee for a consultant’s specialized help, that cost will usually be reasonable compared to potential financial losses you might otherwise incur. Determining Your Bank’s Usefulness The most practical gauge for defining whether a bank is good from a small business owner perspective will often be guided by whether the needed commercial financing can be provided or not. Even though banks worldwide have been proclaiming that they are functioning financially at a normal level, there actually are various reports that tell a different story. A consultant with experience in business finance will know in advance which lenders are actively making commercial mortgage loans and working capital loans. If a particular bank is in fact not providing commercial loans as usual, it certainly might be because they do not have sufficient resources to do so. While this bank might not feel they deserve the bad bank label, our perspective is that results count. However small in number, good banks are legitimized by commercial borrowers when they practice healthy lending habits. Business owners should use the services of professionals to determine which banks are in good, secure standing. Get Ready to Fire Your Bank and Your Banker For owners of small businesses, the concept of firing their banker is probably still in the dark. It may feel comforting to assume the bank actually cares how one’s business is doing. Even when there is a close relationship with a commercial banker, in the current banking climate a guerrilla business loan perspective may be appropriate for small business owners who must look out for their best interests. One of the most predictive signs that a commercial borrower might need to fire their banker is an escalating number of times when their commercial banker is unable to achieve the results which were originally offered or discussed. Business Cash Advance Programs for Working Capital In order for small businesses to be successful in an unstable economy, guerrilla loan tactics which may have been overlooked due to their complexity or expense should be investigated. A merchant cash advance program (also referred to as credit card receivables factoring) is a key example of a commercial financing strategy which has frequently been a Plan B for many merchants but often not utilized in their final choice for acquiring more working capital. With a sudden reduction in business lines of credit and an increased requirement for collateral by many commercial lenders, the use of credit card processing to obtain working capital financing now has more practical appeal for the typical small business owner who needs more cash for their daily operations. More Guerrilla Tactics for the Small Business Survival Guide The purpose of this abbreviated discussion was to emphasize the need for small business owners employing a variety of methods to ensure that they can be successful in a challenging environment. In addition to the guerrilla financing tactics described above, there are several other important small business loan options which should be considered by commercial borrowers before finalizing their commercial loans, SBA financing or commercial mortgages.

Stephen Bush and AEX Commercial Financing Group provide

commercial financing

help and

business loans

for business owners. Steve specializes in commercial mortgages and

business cash advances

.

Article Source:

ArticleRich.com

Submitted by: Chris Mcguire

Fixed mortgage rates are decided by the price of government bonds and the bond yield. Investing in bonds are in general considered safer than stocks, and as soon as there is financial turmoil, investors normally will unload equities in preference to bonds, particularly Government bonds, and at the same time as the stock market is thriving, investors in all probability would make a higher return on investment in equities. This way there is a lower demand for bonds; as a result, their valuation decreases that add to their yield. On the other hand, as soon as the economy turns out to be less stable and stocks do not look as attractive, the demand for bonds rises that reduces their yields.

As soon as the governments long-term bond prices, for instance the 5 year, increases, this results in a lower returns, in general plummeting the five year borrowing costs for mortgage lenders who can then pass on these savings to customers in the shape of lower 5 year fixed mortgage rates. On the other hand, during these exceptionally odd times, caused by inadequate liquidity in the markets, across the world banks are timid to lend to each other and are flush with cash, soaring borrowing costs this results in lenders having to pass on this increase on to customers in the shape of high fixed mortgage rates.

When it comes to variable mortgage rates, Bank of Canada plays a huge role in influencing variable mortgage rates for the reason that overnight target rates are set by the bank and is described as, Intraday average interest rates between financial institutions/banks. On this, banks base their Prime Lending Rates and the Bank of Canada does not interfere on lender’s Prime Rates and are independently determined by each financial institution/banks, further these are based on the cost of short-term money.

Variable mortgage rates that are advertised by banks are directly depended on Prime lending rate, which means that the interest rate you will be paying is directly associated to the Prime rate, and will change each time this changes. As a result, if the Bank of Canada cuts rates by 1% or 100 basis points, lenders mostly follow the bank and reduce their Prime rate too, given that their cost of borrowing falls, this means that your payments on a variable rate mortgage will reduce. This is an excellent choice if interest rates are plummeting. However, at present due to economic crisis banks have stopped lending to each other in the short-term, for the reason that they are fearful they might not get their money back thanks to the volatility in the system. Accordingly, inter-bank lending rates have risen and this increased cost is now being passed on customers by increasing interest rates.

Now it all comes down to which is a better option, fixed rate mortgage or a variable rate mortgage. This in fact relies on, each person s condition and whether he or she can handle the varying mortgage rate payments both monetarily and psychologically for the reason that the last thing you would like to do is being concerned given that interest rates could rise. Otherwise if you would feel more relaxed knowing the stable fixed rate you would be paying, over the next few years. As a final point, it is up to you to choose which will be best for you fixed rate mortgage or variable rate mortgage.

About the Author: Chris is an expert in the field. For more information on

buisness mortgage

and on

best mortgage rates

Please visit: http://www.ratesupermarket.ca

Source:

isnare.com

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