The Small Business Commercial Loan Trends that Dominated 2007

To know the future is to study the past. And any small business owner worth their salt will pay attention to how the highlights and lowlights of small business funding from years past. Stephen Bush, Founder and Chief Executive Officer of AEX Commercial Financing Group with 25 years experience as Business Finance Advisor and Commercial Real Estate Financing Consultant, makes these critical observations concerning the best and worst business small business financing of 2007.

• The Sources have Become Scarce. There was a noticeable decline in the amount of SBA lenders in 2007. Apparently, the credit crunch and subsequent fallout has shaken loose the number of fly-by-night lenders that ‘helped’ get us into the economic situation that we all face.


• Down Payments have Become Demanding. With a the reduction in loan-to-value ratios, borrowers are finding that lenders a slightly larger down payment to close. This has been especially true if lenders are looking to get cash equity out of the business at closing.


• Lenders are Put to the Test. With respect to business cash advances and credit card processing services, the faces have changed extensively over the past year. While there are still many new and inexperienced companies attempting to operate in this complex field, some ineffective providers were forced to leave.

The Bottom Line. The ‘shake-up’ of the credit industry should eventually work in your favor. Once the laws and processes of attaining small business financing are worked out, what should result is a more stable lending environment.