The Working Capital Guide

Business Finance Funding

Survival Guide for Small Business Finance

Small Business Loans and Guerrilla Financing Tactics

This report is designed to serve as a short survival guide for small business owners when they are seeking business loans. The necessity of resorting to guerrilla loan tactics has been accelerated by the decreased performance of commercial banks in providing effective small business finance programs. Although the suggested actions in this article might be seen as a last resort to be undertaken only when all else fails, in reality these suggestions should probably be considered by most commercial borrowers in the early stages of their commercial financing search due to the growing failure of banks to provide a normal level of business funding.

Business Consulting as a First Line of Defense

To put it succinctly and candidly, the current commercial lending climate is no place for amateurs when dealing with more complicated small business finance programs and banks which predominantly are not functioning in a normal manner. The use of business consulting and a commercial finance expert should be considered as one way for business owners to overcome a substantial information gap. A business consultant experienced in the ways of overcoming small business loan problems is a pragmatic solution to a situation that most commercial borrowers would admittedly prefer did not exist in the first place. A business consultant with an appropriate level of expertise will normally require a business owner to pay a reasonable fee for their specialized services. This professional cost will typically be justified when compared to the potential financial damages if specialized help is not acquired.

Determine Whether Your Bank is a Good Bank or a Bad Bank

We have published a separate report about the growing need to determine if a commercial bank is a good bank or a bad bank. The most practical gauge for defining whether a bank is good from a small business owner perspective will often be guided by whether the needed commercial financing can be provided or not. Although banks have been broadly proclaiming that they are providing a normal level of commercial funding, in reality there are multiple reports indicating otherwise. An experienced business finance consultant can serve as a valuable resource based on their advanced knowledge of which lenders are truly active in making working capital loans and commercial mortgage loans. If a particular bank is in fact not providing commercial loans as usual, it certainly might be because they do not have sufficient resources to do so. While this bank might not feel they deserve the bad bank label, our perspective is that results count. On the only scorecard that matters to most commercial borrowers, the small number of good banks will gradually become obvious based on their healthy business lending habits. In the meantime, business owners should expect to need some professional help in finding these few remaining good banks.

Be Prepared to Fire Your Bank and Your Banker

For small business owners, the idea of firing their banker has perhaps not occurred to them yet. Most businesses would probably like to think of their banker as one of the family. Small business owners must increasingly look out for their own best interests because it is unlikely that their banker is up to the task anymore even if their commercial banker is their best friend. This guerrilla business loan perspective is appropriate in the midst of banking chaos currently seen almost everywhere. One of the most predictive signs that a commercial borrower might need to fire their banker is an escalating number of times when their commercial banker is unable to achieve the results which were originally offered or discussed.

Business Cash Advances and Other Options for Working Capital Management

For small businesses to survive in an erratic economy, the use of guerrilla loan tactics means that some small business finance options which borrowers previously ruled out because they were considered too complicated (or too expensive) might deserve a second look. A key example of a commercial financing strategy which has frequently been a Plan B for many merchants but often not utilized in their final choice for acquiring more working capital is a business cash advance program (often referred to as credit card factoring). The use of credit card processing to obtain working capital cash now has more practical appeal for the typical small business owner who needs more cash for their daily operations, particularly if they have been subjected to an increased requirement for collateral and a sudden reduction in business lines of credit by their commercial lenders.

More Guerrilla Tactics for the Small Business Survival Guide

This brief discussion was intended to illustrate the importance for small business owners doing whatever it takes to survive in a tough business climate. In addition to the guerrilla financing tactics described above, there are several other important small business loan options which should be considered by commercial borrowers before finalizing their commercial loans, SBA financing or commercial mortgages.

The Working Capital Guide

Here is a summary of some recent commercial finance funding articles published by Stephen Bush and AEX Commercial Financing Group. These are designed to provide an introduction to the most important working capital loan and commercial loan issues throughout the United States. Please contact us for detailed help — our individualized business financing services include a business cash advance program (coordinated with credit card processing activity) and commercial real estate loans.

• How to Get Business Financing When the Bank Says No - High on the list of problems that small businesses wish they did not have is what to do if their bank says no to a request for business loans and working capital. This article provides some realistic business financing options for commercial borrowers to consider if their bank cannot help.
  
• Bank Rage and Small Business Loans - Small business loans are proving to be harder to obtain, and small business owners are increasingly vocal in expressing their displeasure toward banks. The resulting bank rage by commercial property owners has demonstrated that banks are likely to be evaluated by more critical standards in the future.
  
• Commercial Loans and SBA Loans - Firing Your Banker - Firing their commercial banker is increasingly necessary to help small business owners move forward with a sound plan for their SBA loans and working capital financing. Failure to fire an ineffective banker in a timely manner can impair the future financial health of businesses currently receiving bad advice and inadequate commercial loans from their current lender.
• "Good Banks" and "Bad Banks" - Business Finance Consulting - The banking world has been turned upside-down during the past few months. When looking for reliable commercial loan sources, it is now increasingly important for small business owners to recognize the differences between "good banks" and "bad banks". Because this will not be an easy process for most commercial borrowers, the use of business finance consulting can be helpful.
• Guerrilla Loan Tactics - Small Business Finance - It is increasingly likely that small business owners will need to resort to aggressive use of guerrilla loan tactics when seeking appropriate small business finance funding. In the current commercial lending climate, business borrowers should not hesitate to do whatever it takes for their business to survive.
• Mixed Signals for Small Business Financing - While lenders have indicated that business lending is proceeding at a normal pace, commercial credit lines have been increasingly reduced or revoked entirely and fewer business loans are being completed in most locations. As a result, business owners are confused by the mixed signals concerning the actual availability of small business financing.
• Working Capital Financing and Commercial Loans Need Intensive Care - The concept of intensive care being necessary for working capital loans accurately reflects the stress and uncertainties that most small business owners are experiencing when requesting business financing from banks. Experienced specialists can frequently help in restoring financial health even though the commercial financing patients (business borrowers) might be in serious condition.