Economy Improving, Businesses Refinance Commerical Loans

In the rough days of the Great Recession business owners hung onto whatever they could regarding their commercial loans, happy being able to make payments in dark economic times. As things are now starting to get better, explains Carlos Hank Rhon, these same entrepreneurs are looking to possibly refinance the same loans, hoping to get better interest rates. It is possible to refinance commercial loan but to get a good deal requires that some criteria be met.

Lending institutions don't just hand out favors and they will not do much for someone who has a poor payment record. Prior to even approaching a lender for refinancing, recommends Carlos Hank Rhon the business owner needs to be sure that all payments were on time prior to the meeting. Business owners should also make sure that all financial statements are prepared properly and are on-hand to present to the lending institution. 

A strong relationship with the bank helps but assurances such as a good cash flow ought to be on the balance sheets. Any penalty points have to be factored into the final deal and a business owner has to be able to show collateral if it is requested. A major concern ought to be with the final deal looks like in writing. If it means having an attorney look at it first prior to signature, that's not a bad idea.

Other lending institutions can be investigated for possible refinancing but their terms may include moving all business to them that may include personal checking accounts as well. A small business owner should not hesitate to review all options in order to get a refinancing. However, it has to be remembered that this is a business transaction and unlike the mortgage refinancing it is not as cut and dried a process.

Carlos Hank Rhon, Economists and Funding for Small Business

Economists rarely agree, but most will admit that small business is a driving force of the American economy and will be for many years to come. explains Carlos Hank Rhon. These entrepreneurial firms are built on the dreams and enthusiasm of people willing to take risks and in turn, providing stimulus to the economy. They do need funding to go from one level to the next and these may not necessarily be traditional banks or lending institutions. There are other options that can be considered, and a smart small business owner should consider as many as practicable.

Venture capital is one possibility. In these situations money is raised by granting cash in exchange for partial ownership of the company, which usually comes in the form of shares of stock. A word of caution, though, is a venture capitalist will play an active rather than passive role in the management company. That is not always a bad situation as many venture capitalists bring with them a wealth of experience and advice far more valuable than their investment in your business.

Government is also a source for financing and the Small Business Administration (SBA) is an excellent source, notes Carlos Hank Rhon. The Administration has a number of loan programs for which a business owner might qualify. There is an application process and funding is not necessarily a given, but it is usually easier to secure a loan from the SBA than a bank. State and local departments of economic development might also have resources available for funding.

A small business owner should of course have strong financial records and balance sheets to suggest continued success. Yet at the same time this person shouldn't feel he or she is restricted to local banks alone. Possibilities are all over for securing funding and with a little homework the small business owner may find exactly what is needed to expand an already successful operation.

Carlos Hank Rhon Banking Advancements

 

Banking has come a long way, even just over the past ten to fifteen years or so. At one time you had to visit your local bank or give them a call during normal business hours in order to find out how much money was currently in your checking or savings account. These days you can find out this information in just seconds at any time of day with just a click of a button, explains Carlos Hank Rhon. Online banking provides benefits for businesses as well as for individuals.

Thanks to advancements in banking technology such as telephone banking, online banking and mobile banking we are now able to track our spending habits more accurately than ever before. Now, explains Carlos Hank Rhon, we are able to keep track of what funds are currently available in our checking or savings account just by making a simple phone call, logging onto our online account or using a smart phone device in order to gain quick access to mobile banking.

 

Telephone banking has been around for many years and it is still widely used today by many banking customers. This automated system allows you to call and check your balance at any time throughout the day even if the bank is closed simply by entering in your account information over the phone. Online banking allows us to go to the bank’s online website and access our checking accounts online which provides us with many more user options than telephone banking and mobile banking is the newest addition to banking technology that gives users more access than ever before by use of their smart phones.