Karen Benjamin asked:
rking Capital Journal and elsewhere, there have been many reports so far indicating that only a small number of financial companies appear to be acting as if they truly understand that “We`re all in this together”. A special concern by many observers is that the largest banks (essentially those receiving federal funds recently to assist with their troubled financial operations) are not acting in this manner at all. Two major problems are becoming more obvious for business borrowers as a result: (1) Even though the funds have supposedly been provided to do just, banks receiving bailout funds have failed to resume a normal lending pattern for commercial finance funding. These same banks also seem to be unable to report to anyone how they are in fact spending billions of dollars. (2) Many banks are decreasing their commercial loans and commercial real estate loans by recalling outstanding loans or cancelling business lines of credit. There has already been much public backlash in reaction to inappropriate banking bonuses and spending. So far that has primarily taken the form of criticism and questions about how banks are allocating the financial resources largely subsidized by the taxpayers providing bailout funding. As it becomes more obvious that the action of many banks is impeding the recovery from economic chaos, it is likely that most business owners will choose to obtain their business finance funding from a lending source that has helped rather than hindered financial recovery efforts. As always, business owners cannot typically afford to wait for government and external action to resolve problems like those described above. Given the facts that many banks have exited or reduced commercial lending activities, business owners should attempt to find alternative sources for working capital loans and commercial loans. With appropriate help from a commercial financing expert, commercial borrowers will be able to identify which commercial lenders have been acting like responsible corporate citizens and business neighbors. It is unfortunately common to find that most bigger banks have eliminated new working capital financing and commercial mortgage loans. Although they are proving to somewhat difficult to identify and locate, there are commercial lenders actively making new commercial loans. In addition to the larger banks reducing most lending programs, another difficult commercial financing situation is that very few of the smaller local banks have resumed prior business loan activities. A previously familiar and reliable source for working capital loans might not continue to be a viable business funding choice. For the most part, local and regional banks simply do not have sufficient capital for new commercial loans. In addition to business owners seeking alternative commercial funding sources, many commercial borrowers will now discover new financing choices such as business cash advance programs. Under most circumstances, business cash advances are provided by business lenders other than commercial banks. Such a working capital funding source might increasingly prove to be more reliable than traditional banks of any size in providing commercial financing effectively. By looking for lenders displaying an appropriate attitude of “We`re all in this together”, business owners should hopefully find that their business financing circumstances will improve.
Small businesses seeking information on how Hudson Commercial Capital can help during this financial crisis can call 1.212.564-0031 or can visit
rking Capital Journal and elsewhere, there have been many reports so far indicating that only a small number of financial companies appear to be acting as if they truly understand that “We`re all in this together”. A special concern by many observers is that the largest banks (essentially those receiving federal funds recently to assist with their troubled financial operations) are not acting in this manner at all. Two major problems are becoming more obvious for business borrowers as a result: (1) Even though the funds have supposedly been provided to do just, banks receiving bailout funds have failed to resume a normal lending pattern for commercial finance funding. These same banks also seem to be unable to report to anyone how they are in fact spending billions of dollars. (2) Many banks are decreasing their commercial loans and commercial real estate loans by recalling outstanding loans or cancelling business lines of credit. There has already been much public backlash in reaction to inappropriate banking bonuses and spending. So far that has primarily taken the form of criticism and questions about how banks are allocating the financial resources largely subsidized by the taxpayers providing bailout funding. As it becomes more obvious that the action of many banks is impeding the recovery from economic chaos, it is likely that most business owners will choose to obtain their business finance funding from a lending source that has helped rather than hindered financial recovery efforts. As always, business owners cannot typically afford to wait for government and external action to resolve problems like those described above. Given the facts that many banks have exited or reduced commercial lending activities, business owners should attempt to find alternative sources for working capital loans and commercial loans. With appropriate help from a commercial financing expert, commercial borrowers will be able to identify which commercial lenders have been acting like responsible corporate citizens and business neighbors. It is unfortunately common to find that most bigger banks have eliminated new working capital financing and commercial mortgage loans. Although they are proving to somewhat difficult to identify and locate, there are commercial lenders actively making new commercial loans. In addition to the larger banks reducing most lending programs, another difficult commercial financing situation is that very few of the smaller local banks have resumed prior business loan activities. A previously familiar and reliable source for working capital loans might not continue to be a viable business funding choice. For the most part, local and regional banks simply do not have sufficient capital for new commercial loans. In addition to business owners seeking alternative commercial funding sources, many commercial borrowers will now discover new financing choices such as business cash advance programs. Under most circumstances, business cash advances are provided by business lenders other than commercial banks. Such a working capital funding source might increasingly prove to be more reliable than traditional banks of any size in providing commercial financing effectively. By looking for lenders displaying an appropriate attitude of “We`re all in this together”, business owners should hopefully find that their business financing circumstances will improve.
Small businesses seeking information on how Hudson Commercial Capital can help during this financial crisis can call 1.212.564-0031 or can visit
