Why Banks Are Not Lending In 2012 Winston Rowe & Associates

May 1, 2012 - PRLog -- Why Banks Are Not Lending In 2012 Winston Rowe & Associates

Winston Rowe & Associates, a national no upfront fee private capital firm that specializes in asset based lending for commercial real estate. They have prepared this news article to identify the issues of why the banking industry is still not lending on a large scale basis.

If you would like more information about Winston Rowe & Associates and their capital deployment objectives for 2012, prospective clients can contact them at 248-246-2243 or check them out on line at http://www.winstonrowe.com

Given all the media attention to the recent plight of small businesses in seeking business loans, it is easy to get mad at banks for keeping their vaults closed tight regarding small business lending, a trend expected to continue in 2012.

First, most financial institutions are fearful of current and future government regulations. For example, the credit card reform act of last year has really done nothing to protect consumers from crushing debt. All it has done is make it more burdensome for credit card companies and banks to issue and manage these accounts. In response, banks and other lenders is either passing along these new costs to account holders or telling potential borrowers no.

Further, with the recent passage of the financial reform bill in 2010, banks and other lenders are sitting tight waiting until all the provisions of the bill are written into law and these organizations have the chance to see how the new bill will affect how they operate their businesses - especially in how they underwrite business loans.

Second, while we seem to be getting beyond the housing crisis and all the bad or subprime loans that defaulted in 2009 and 2010, we have yet to see the impact that similar commercial property loans and their impending defaults will have on our lending institutions.

Many banks and other commercial property financiers are still sitting on tons of bad commercial property loans; many that are already in default or approaching it quickly - especially since our so called recovery is barely inching forward. Thus, until the banks can get a hold of their commercial loan portfolios, they will continue to hold tight the strings on future lending to small businesses.

Lastly, and most importantly, while banks and other lenders continue to see high demand for business loans they are not seeing very qualified borrowers. Many business owners, hit by this recession have, over the past two plus years, seen their revenue and thus net income drop substantially as well as watched their personal and business credit scores crash and burn. At the same time, mostly due to the factors mentioned above, banks have been increasing their lending criteria requiring higher levels of net income or cash flow and higher credit scores.

Winston Rowe & Associates has an excellent knowledge based resource for commercial real estate valuation and market analysis located at:

http://www.winstonrowe.com/Free_Real_Estate_Resources.html

Winston Rowe & Associates has a core focus on building long-term relationships, delivering exceptional and individualized customer service, and positioning loan products that best achieve their client’s goals. Their preemptive problem-solving approach is perfect for clients with credit and time sensitive issues.

Winston Rowe & Associates
31408 Harper Ave
Suite 147
Saint Clair Shores MI 48082
248-246-2243

Winston Rowe & Associates has no upfront free private commercial loans in the following states.

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine,  Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee,   Texas, Utah, Vermont, Virginia,   Washington, Washington DC, West Virginia, Wisconsin, Wyoming