Small Business Financing and Bank Rage Evaluated by AEX Commercial Financing

Sept. 30, 2009 - PRLog -- AEX Commercial Financing Group has published a series of small business loan reports evaluating commercial banking rage and how to address difficult business financing and working capital financing situations being experienced by most small business owners. With the AEX special reports, small businesses should be better prepared for the increasingly difficult commercial loan and working capital environment.

According to Stephen Bush, Founder and Chief Executive Officer for AEX Commercial Financing Group, "Bank rage is emerging as a practical issue for business loans and small business owners. A revision in how banks are able to take risks is a major underlying factor for this very real small business problem. Carelessly investing in risky residential mortgages that do not always go up in value is a prime illustration of how balance sheets were over-leveraged by many banks. These investments are now usually referred to as toxic assets because they are either worthless or it will be a long time before anyone could sell them at a break-even value. A related issue which is increasingly apparent to business owners is how banks are spending their scarce resources currently, and the result of this analysis is producing a large share of bank rage. Instead of traditional uses like working capital financing for small business owners, many well-known banks are paying million-dollar salaries and bonuses to employees who have already taken their employers to the brink of insolvency. Many banks invested in toxic asset variations, often paying as little as three cents on the dollar in cash and leveraging the remainder with debt. Most objective observers will point out that this is no way to run a bank. In perhaps the most revealing indication that banks are still taking unwarranted risks, it was recently reported that over 1000 banks are currently trading in risky derivatives (an increase compared to one year ago). It is clear that the bankers themselves continue to argue that they are not engaging in risky behavior. However, the recent credit chaos and the failure of countless financial companies can all be realistically attributed to financial institutions making risky losing bets with derivatives. As one unsurprising result, the good banks have been stigmatized by the behavior of bad banks. Determination of whether their current banking relationship involves one of the good banks or bad banks might be the most practical business finance option to be evaluated by small businesses. Without a doubt, small business owners should be ready to look out for their own best interests."

Further updates about business financing => http://aexcommercialfinancing.com

AEX has consistently advised their commercial borrower clients over the years that it is essential to have a complete understanding of working capital management and small business financing problems and how to solve them. More detailed information is available at AEX websites regarding their commercial finance services. AEX provides specialized help for commercial loans and commercial real estate loans throughout the United States. Please contact Steve Bush at AEX Commercial Financing Group to address any questions. Additionally, here are two suggested business finance resources which should be helpful for small business owners:

The Working Capital Journal => http://working-capital.squarespace.com

The Small Business Financing Guide => http://aexllc.com

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About AEX Commercial Financing Group: AEX provides merchant cash advances and small business financing throughout the United States for purchases, business refinancing and working capital management. AEX has built a solid business reputation based upon candid advice for avoiding problems with small business loans such as difficult SBA loan refinancing. AEX is based in Ohio and can provide business owners with short-term and long-term working capital financing and commercial real estate loans. Free business financing analysis is available from AEX Commercial Financing Group for small businesses located throughout the United States.