Commercial Business Loans for Your Company!

Even if you have a small business that you have financed yourself there may be times you need more money than you can afford. At those times you will need to look to more traditional ways to fund your business. Commercial business loans are the most common means of getting funds for a business, but they can be difficult to obtain if you haven’t set up your company properly for funding.

Getting Started

The very first thing you need for the basis of good fundability is a business plan. There are many templates online for a good business plan. At its very heart, a business plan is a blueprint for your company and it tells investors and lenders what they need to know about its expenses and income potential.

When you are making your business plan, part of that will be making sure your company has all of the legal issues covered such as licensing and identification numbers. You need both IRS tax numbers and a DUNS number from Dun & Bradstreet to identify it for credit reporting purposes.

Developing a Credit History

Before you can get accepted for commercial business loans you need to prove your credit worthiness. You can do this fairly easily by opening vendor accounts to establish your ability and willingness to pay your bills on time. After you have several vendor accounts with a track record of payments you can open several business credit cards to give yourself even more financial opportunities while strengthening your business credit. Along with credit you should open a bank account in your business name to develop a bank score that shows you have a good history of income and also gives an overview of your expenses in one place.

If you have taken the time to create a strong business identity and credit history, you can walk into a lender’s office with confidence. Getting loans for businesses today is not harder than it used to be as long as you are prepared. Even if you don’t need money right now, doing the right things for your company to prepare it and create business fundability will ensure you are ready whenever you need money to expand, get through tough times or buy property or equipment.

Business Finance Funding Advice and Commercial Financing Help

The Working Capital Journal is one of several commercial financing resources which should be reviewed regularly by small business owners to assist in keeping up with the imposing difficulties posed by rapid changes in the business finance funding climate. As noted below, there have been some surprising actions taken by lenders as a direct result of recent financial uncertainties. The increasingly complex and confusing environment for working capital finance is likely to produce several unexpected challenges for commercial borrowers.

The working capital finance industry has primarily been operating on a regional and local basis for many years. In response to cost-cutting that has permeated many industries, there has been a consolidation that has resulted in fewer effective commercial lenders throughout the United States. Most business owners have been understandably confused about what this might mean for the future of their commercial financing efforts, especially because this has happened in a relatively short period of time.

Of course, for some time there have been ongoing complex problems for commercial borrowers to avoid when seeking commercial loans. But what has produced a new set of business finance funding problems is that we appear to be entering a period which will be characterized by even more uncertainties in the economy. Previous rules and standards for commercial financing and working capital finance are likely to increasingly change quickly, with little advance notice by business lenders.

Business owners should make an extended effort to understand what is happening and what to do about it due to this realization that substantial changes are likely throughout the United States in the near future for commercial finance funding. At the forefront of these efforts should be a review of what actions commercial lenders have already taken in recent months. The Working Capital Journal is one prominent example of a free public resource that will facilitate a better understanding of the responses by business lenders to recent economic circumstances.

By publicizing actions taken by commercial lenders, this will contribute to these two goals, both of which are likely to be helpful to typical business owners: (1) To highlight controversial bank-lender tactics with a view toward reducing or eliminating questionable lending practices. (2) To help business owners prepare for commercial finance funding changes. To assist in this effort, sources such as The Working Capital Journal are encouraging business owners to report and describe their own experiences so that they can be shared with a broader audience that might benefit from the information. Some of the most significant commercial financing changes reported so far by commercial borrowers involve working capital loans, commercial construction financing and credit card financing. A notable situation of concern is that predatory lending practices by credit card issuers have been reported by many business owners. Some specific businesses such as restaurants are having an especially difficult time in surviving recently because they have been excluded from obtaining any new business financing by many banks.

One of the few recent bright spots in business finance funding, as noted in The Working Capital Journal, has been the continuing ability of business owners to obtain working capital quickly by business cash advance programs. For most businesses accepting credit cards, this commercial financing approach should be actively considered. Business cash advances are literally saving the day for many small business owners because most banks appear to be doing a terrible job of providing commercial loans and other working capital finance help in the midst of recent financial and economic uncertainties. For example, as noted above, restaurants are virtually unable to currently obtain commercial finance funding from most banks. Fortunately, restaurants accepting credit cards are in a good position to obtain needed cash from credit card receivables financing and merchant cash advances