Business Loan And Commercial Mortgage Loan Alternate Strategies
By Stephen A. Bush
Commercial borrowers need to realize that they have more commercial options than they think. These business financing options are referred to here as "Thinking Outside the Bank" because most commercial borrowers believe that a bank is the best source for a commercial loan. Non-traditional business lenders are commonly considered to have the competitive edge for a variety of business financing situations.

A bank might offer to provide business financing but require overly stringent terms. In other cases a traditional bank will decline the commercial because they do not provide commercial mortgage loans to the commercial borrower's business category. For both examples, a commercial borrower will benefit by "Thinking Outside the Bank".

Some business borrowers are likely to feel that a traditional bank is their best source for a commercial mortgage. However, because most traditional banks focus on a small number of established industries, non-traditional (non-bank) and non-local commercial lenders should be considered for most business financing situations. Therefore the recommended commercial strategy (as discussed in this article) is to "Think Outside the Bank".

As I noted in an earlier commercial mortgage article, in many non-competitive business situations it is not unusual for a local traditional bank to impose harsher business financing terms than would commonly be seen in a more competitive commercial market. Such traditional banks routinely take advantage of a relative lack of other commercial lenders in their local market.

A prudent response by business borrowers is to consider non-traditional commercial mortgage options. It is not necessary for borrowers to depend upon traditional banks for business strategies. For typical commercial scenarios, a non-bank lender can often provide better business financing terms because of the competitive market situation.

There are three business scenarios in which borrowers will commonly discover that non-traditional lenders will offer terms that are better for the business owner: (1) commercial real estate financing programs; (2) working capital business programs; and (3) business management programs for credit card processing.

Business Financing Programs - Commercial Mortgage Alternatives

Two of the most common commercial mortgage difficulties experienced by commercial borrowers can be avoided if they "Think Outside the Bank". The first business financing situation is the prevailing practice of traditional banks to avoid most special purpose properties (such as funeral homes and churches).

The second business financing situation is the typical practice of most commercial banks to attach balloon and/or recall provisions to their commercial mortgage loans (which means that the bank can require early repayment of the commercial under various conditions). Both of these undesirable business situations can usually and easily be avoided by considering a non-traditional and non-bank lender.

Commercial Choices - Merchant Cash Advance and Working Capital Programs

Business owners that accept credit cards will frequently qualify for a working capital business via credit card financing. Traditional lenders will often be very poor candidates to consider if a business needs help with a business cash advance.

Because even the most successful merchants usually need more financial resources than they can get from a conventional commercial business loan, it is essential for a business to "Think Outside the Bank" and find non-traditional lenders to coordinate this commercial financing requirement.

Commercial Alternatives - Programs for Credit Card Processing Management

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choice of an appropriate credit card processing service can be instrumental in improving the profitability of businesses with a high volume of credit card activity. The analysis of credit card processing providers can be effectively combined with the credit card factoring and credit card receivables process described above.

In coordinating a business cash advance and working capital business program, it is usually possible to achieve improvements in the business owner's credit card processing services. Traditional banks are usually not competitive in providing assistance with a business cash advance using credit card receivables. So it is likely that a non-traditional lender will be the major source of competitive help with credit card processing improvements.

A closing business financing thought: I have written an earlier business article about commercial lenders to avoid. It should be noted that there are in fact both traditional and non-traditional (non-bank) lenders which should be avoided.

Because of this, when commercial borrowers "Think Outside the Bank", they must be prepared to anticipate some ineffective non-traditional commercial lenders in their attempt to find better commercial financing involving credit card processing management, commercial mortgage loans and business cash advance programs.

Copyright 2005-2007 AEX Commercial Financing Group, LLC. All Rights Reserved.

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Contact S.A. Bush at AEX Stated Income Business and Commercial Mortgage Solutions for commercial financing - commercial mortgage strategies
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