When Your Banks asks you to leave …
Commercial lending continues to be a challenge for private loans and small businesses since the market crash of 2008. Stricter banking regulations and tighter loan qualifications have turned conventional lending into a long, tedious process.
SUMMARY: Bill Frey of Bellwether Funding writes about how the banking industries loan process has changed since the market crash of 2008. The selection, documentation, and communication loan process has altered, making it more difficult to receive a bank loan. In addition, moving a loan from lender to lender, in a refinance situation, needs detailed communication.
QUOTE: “Issues such as high vacancy rates, historic losses, low personal credit scores, declining sales, or negative corporate net worth can eliminate conventional bank lending as an option. In this case, you will need to explore alternative sources. These include short-term private-money lending sources (known as either bridge or hard-money loans), asset-based lending, or factoring.”