The concept of "business loans without banks" has recently assumed a critically important role for business owners unable to obtain bank financing. The process of replacing a bank is rarely an option which is openly pursued by a small business. Pursuing such a path when their bank says "no" to routine requests for business financing is realistically the primary option to be reviewed by any astute business owner. Improvements to the overall financial health of a business will be achieved in a pleasantly surprising number of cases even though this search for new small business finance options is undertaken under protest by most commercial borrowers.
There are two financing situations that businesses should especially be prepared for banks saying "no". One of these involves commercial real estate financing and the other working capital loans (including business lines of credit). While a small number of banks are still proving to be reliable sources for some small business financing options, recent nationwide commercial banking reports clearly show a drastic reduction in business loans for commercial real estate loans and working capital loans.
A prudent starting point for commercial borrowers is likely to be an extended discussion with a small business loans expert for helping to adequately evaluate how to get working capital financing and other business finance help when their bank says "no". This step is likely to be critical to eventual success in formulating a strategy for obtaining new sources of small business funding, but finding and selecting such an expert will not be a quick or easy task for business owners. Ensuring that any business finance expert chosen is totally independent and not affiliated in any way whatsoever with the bank which has already said "no" is an aspect that should be emphasized in locating a viable expert to help.
Even for businesses which are both long-term and profitable customers, banks are routinely saying "no". It has become common to hear phrases such as "business loans without banks" and "thinking outside the bank" when talking about alternatives small business owners need to consider because this has become such a widespread commercial banking problem. Banks are currently saying "no" more frequently than they have in decades. Small businesses are increasingly hearing their bank say "no" to requests for the working capital financing and commercial financing which they require. Most commercial borrowers are unsure what to do next because this represents uncharted waters for them. While a bank saying "no" is not a result that any business owner would seek, in many circumstances it can eventually lead to an overall improvement in small business finance options. Small business owners are usually pleased to discover that they can not only replace existing bank financing satisfactorily but also improve their bottom line in the transition when they have literally been forced to find new small business finance choices.
Steve Bush is a reliable source of small business financing and is CEO of AEX Commercial Financing Group ( aexcfg.com ). He delivers commercial loans and business financing programs throughout the U.S. Steve has offered candid advice to business owners for 30 years.
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