Commercial Lenders

Specialized Commercial Lending Programs

Commercial lending and commercial banking have turned into a nightmare scenario for many small business owners. One of the most perplexing situations for commercial borrowers is the realization that there are now "good banks" and "bad banks". Because of this, business owners should be prepared to act quickly and aggressively for protection of their own financial interests.

While lenders have indicated that business lending is proceeding at a normal pace, commercial credit lines have been increasingly reduced or revoked entirely and fewer commercial mortgages are being completed in most locations. A direct result of this is confusion among business owners about the true availability of working capital, business cash advance programs, commercial loan refinancing and commercial real estate financing. Among the difficult issues to be weighed in the decision-making process is likely to be whether it is feasible to find a new small business financing source.

Many commercial borrowers are reluctantly realizing that banks are just not what they once were. In a manner similar to many automobile manufacturers that are now a tarnished and shriveled version of what they once were, it seems like almost overnight most banks have lost the confidence of their borrowers. With such changes, small business owners are facing a new commercial loan environment and must adapt quickly. Even if their commercial banker is their best friend, small business owners are increasingly realizing that they must look out for their own best interests because their business banker might not be up to the task anymore.

Identifying and avoiding dead banks walking and zombie banks in business finance funding is increasingly important for all commercial borrowers. These terms are used to describe banks which have effectively already gone broke. By dealing with a so-called zombie bank, business owners might be wasting their time as well as endangering the future financial health of their business investment.

Although recent discussions using the colorful terms "Dead Banks Walking" and "Zombie Banks" contain some humor and have entertainment value, there is also a more serious and practical aspect. For most business finance funding situations, it is not likely to be in the best interest of prudent business owners to be involved with a bank which can be accurately described as a zombie bank or dead bank walking. The impact for commercial financing can be extensive because the descriptions increasingly appear to apply to a significant number of banks. If they are dealing with a dead bank walking, it should be helpful for commercial borrowers to discover their practical options for eliminating zombie banks from their working capital loan review process.

Can business owners really afford to wait for the government to solve this problem? Although waiting a few weeks or even several months might be viable for a practical solution which results in needed commercial loans, the current logjam impacting business finance funding shows little evidence of subsiding that quickly. Prudent commercial borrowers should seek alternative sources for essential working capital financing such as business cash advances. In case it is not obvious from the discussion above, dead banks walking and zombie banks can be avoided when seeking new commercial financing.

 Commercial Lending Options