From Dublicore.org
http://www.dublicore.org/Commercial-Finance-Funding-Misinformation/
Recent uncertainties in financial and credit markets have produced misleading information about the availability of business financing. For most small business owners, it is probably not clear if commercial finance funding is realistically available to them or not. It seems apparent that there have been many reports suggesting that normal commercial loan channels are either frozen or extremely sluggish. In reality there are more opportunities for commercial finance needs than suggested by such reports.
One harsh reality that is unfortunately true for commercial financing: many banks have discontinued all or most of their business lending activities, often with very little advance notice. However, in spite of this admittedly bad news, there continue to be to reliable funding sources for commercial real estate financing, business cash advances and working capital loans. At the same time, the current negative economic conditions will prove to be difficult for most businesses and commercial borrowers should expect that extra efforts will be required to successfully arrange business financing.
One common example of commercial finance misinformation distorting what is actually feasible: several publications have suggested that most new business financing requests are on hold or have simply been rejected due to recent credit market uncertainties. While the sources for this information might have been truthfully told by one or more lending institutions that they are in fact deferring new commercial loan funding, this does not mean that is the case throughout the United States. If we were discussing automobile sales, it would be comparable to concluding that nobody is selling any cars anywhere after learning that two manufacturers and five major dealers announced that they were going out of business due to lack of adequate sales.
Another example of how business finance funding reports might confuse small business owners: some kinds of commercial financing have been more disrupted than others by recent events. It is possible that commercial borrowers will be unnecessarily confused by a report that primarily applies to a very specialized form of business financing rather than to all variations of commercial loans.
For example, by most accounts commercial construction loans are in short supply currently. A more accurate version would reflect that the number of commercial lenders currently active in construction financing has shrunk dramatically, which means that such specialized business loans are available but not as easily available as they were just a few months ago. At the same time, most commercial real estate loans without new construction have not been as severely impacted as funding requests which do involve construction financing.
In the current commercial funding crisis, small business owners should actively seek a commercial loans expert for a candid discussion and realistic assessment about small business loans and working capital financing. Despite the many reports about limited availability of business financing, some commercial lending activities such as business cash advance programs are as active as they have ever been.
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