Commercial Loan Strategies - Think Outside the Bank
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Commercial loan borrowers are likely to feel that a traditional bank is their best source for commercial financing. 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 commercial loan situations. Therefore the recommended commercial loan strategy is to "Think Outside the Bank".

There are several commercial loan situations that commercial borrowers will frequently find that non-traditional commercial lenders are better positioned to provide terms that are more advantageous to the commercial borrower:

(1) Business cash advance and credit card loan programs

(2) commercial mortgage loans

(3) credit card processing programs.

In some cases a traditional bank will offer to provide a commercial loan but will attach excessively stringent terms and covenants. In other cases a traditional bank will decline the commercial loan outright, perhaps because they do not even provide commercial financing to the commercial borrower's particular industry. In either case, the commercial borrower is likely to benefit by "Thinking Outside the Bank".

COMMERCIAL LOAN EXAMPLE ONE - THINK OUTSIDE THE BANK Business Cash Advance and Credit Card Loan Programs

Most businesses that accept credit cards in their business will qualify for a business cash advance with their credit card receivables. Traditional banks will typically be very poor candidates to consider if a business needs assistance with a credit card loan and business cash advances. Because even thriving businesses frequently need more cash than they can borrow from a bank, it can be of critical importance for a business to "Think Outside the Bank" and locate non-traditional lenders to assist with this business financing need.

COMMERCIAL LOAN EXAMPLE TWO - THINK OUTSIDE THE BANK Commercial Mortgage Loans
Two of the most common commercial loan difficulties experienced by commercial borrowers can be avoided if they "Think Outside the Bank". The first commercial loan situation is the practice of traditional banks to avoid most special purpose properties (such as funeral homes and churches). The second commercial loan situation is the common practice of most commercial banks to attach balloon and/or recall provisions to their commercial loans (which means that the bank can require early repayment of the commercial loan under various conditions). Both of these undesirable commercial loan situations can usually and easily be avoided by considering a non-traditional and non-bank lender.

COMMERCIAL LOAN EXAMPLE THREE - THINK OUTSIDE THE BANK Credit Card Processing Programs

The 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 loan process described above. In assessing a business cash advance program, it is frequently possible to simultaneously arrange for a substantial improvement in the merchant's credit card processing program. Because traditional banks are usually not competitive in providing assistance with credit card factoring, it is equally likely that a non-traditional lender will be the primary source of effective and competitive help with credit card processing.

A closing commercial loan thought: I have written an earlier commercial loan 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. So when commercial borrowers "Think Outside the Bank", it is still of critical importance that they are prepared to avoid a wide variety of problematic non-traditional commercial lenders in their search for viable commercial financing, especially when it involves business cash advance (credit card loan and credit card factoring) programs, credit card processing services and commercial mortgage loans.

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

Stephen Bush is the Founder and Chief Executive Officer of AEX Commercial Financing Group, LLC ( http://sabush.org ). Steve provides business financing assistance throughout the United States and is the publisher of The Credit Card Receivables Guide ( http://aexcfg.com ). Information about enrolling for a free online series of Special Business Financing Reports is available at all AEX Commercial Financing Group, LLC websites (including http://aexcommercialfinancing.com ).

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