Jan. 13, 2010 -
PRLog -- The wall street journal reported on 1-5-2010 (MARSHALL ECKBLAD and MATTHIAS RIEKER) that the commercial loan industry is ready to start making profits again. The problem is that the commercial banks are having a difficult time finding borrowers. An increase in yield will enable the bankers to make a larger profit from commercial loans. A more conventional approach to borrowing money at a low rate and lending it at a profit is the way it was done in the past. Bankers now see the profit potential as being better than in the recent past and would like to lend money for commercial loans; however, the obstacle for the bankers is that the commercial loan market has seen a decline of borrowers. The question is how can the banks get back into the commercial lending business again? One way would be to reach out to the small business community; commercial bridge loans would be one way to do that. Small business owners need capital to expand but do not want the long term commitment that a typical commercial loan would have. It is clear that the bankers and business owners could meet in the middle. Two things need to happen:
#1. If commercial banks offered a bridge loan
http://www.ibank.com/commercial-bridge-loans.cfm to a small business with the understanding that the money would be used for stabilization, an offer of refinancing that bridge loan into a low interest rate long term commercial mortgage.
#2. Small business owners need to get back to basics and understand that lenders are now underwriting like they did prior to the mortgage melt down.
http://www.ibank.com/commercial-mortgage-quotes.cfm Owners must create business, marketing, and cash flow plans before commercial bankers will conceder lending money. This is a good thing for the owners of small businesses. One reason is that unprofessional business owners will not be competing in the same market as more stable companies that have developed the disciples to stay in business. A problem in the past with fly by night companies coming in and out of the market place created an unstable environment for the more mature business concerns.
One last suggestion for the small business owner is shop around for a loan. This can be do through online portals that do a very good job of matching a borrower with a lender like
http://www.ibank.com/how-to-raise-venture-capital.cfm Will be a good place to get started
