Avoiding Commercial Real Estate Loan Problems

AN IMPORTANT NOTE FOR COMMERCIAL BORROWERS:

AEX Commercial Financing Group provides a personalized and individualized level of service that is uncommon in the business financing field. Because AEX routinely works with more difficult commercial loan situations, our successful commercial financing approach requires that we have direct communication with the commercial borrower from the beginning of our involvement.

We have found this increasingly difficult to achieve (for various reasons) when working with residential and commercial loan brokers. Commercial borrowers needing assistance with difficult commercial loan situations should contact AEX Commercial Financing Group directly.

Key Commercial Mortgage Problem Number 1: Special Purpose Properties

It is becoming increasingly difficult to get a commercial loan for special purpose properties. Properties that do not fall in the categories of apartments or retail/office buildings are often placed in this special purpose classification.

This means that business acquisition loans for commercial properties such as restaurants/bars and auto service businesses are frequently hard to find. Commercial financing will be even more difficult to locate for such specialized properties as funeral homes, nursing homes and gas stations.

Key Business Finance Problem Number 2: SBA Loan Refinancing Difficulties

AEX is now offering an SBA Loan and Business Finance program to eliminate most common problems in refinancing a Small Business Administration loan. Obtaining an SBA loan and refinancing an SBA loan are among the most complex business loan scenarios encountered by business owners.

According to Steve Bush, AEX Founder/CEO, "AEX is pleased to be a part of recent developments which now make it more feasible to refinance SBA loans. In today’s suddenly chaotic financial world, many business owners should be able to benefit from the improved business liquidity that prudent refinancing can provide."

Key Commercial Loan Problem Number 3: Online Business Loan Applications

Stephen Bush and AEX Commercial Financing Group advise business borrowers NOT to submit an online commercial loan - business cash advance application.

There are many commercial mortgage - business finance sites that ask borrowers to "Fill out our easy application!" before a business owner has a preliminary conversation with a prospective lender. In submitting an online business financing application, business owners are providing confidential business and personal information to a lender before it is appropriate. Don't do it!

Other Business Loan and Commercial Mortgage Problems to Anticipate

The following terms are common in traditional bank commercial real estate loans and will be unavoidable in many cases:

• Recall/balloon features (used by many banks to effectively shorten most business acquisition loans to 3-7 years).
• Short-term loans (less than fifteen years): LONG-TERM commercial property loans are available.
• Up-front Commitment fees.
• Business Plans will be required by some lenders.
  
• Cross-collateralization: except for many SBA loan programs, commercial borrowers should not be required to use their personal assets as collateral for a commercial property loan.
• Sourcing and seasoning assets. Seasoning of ownership.
• Debt Service Coverage Ratio in excess of 1.2 for a business acquisition loan (see sidebar)
• Minimum commercial property loan size that is too high for your commercial mortgage needs. It is not unusual to encounter a minimum commercial loan requirement of $1,000,000.
  
• Excessive length of the commercial real estate loan process: Many traditional banks require three to nine months to close a commercial mortgage. A more action-oriented commercial lender will close a business acquisition loan in 45 to 60 days.

Commercial Real Estate Financing

Business Financing Solutions

There are practical business financing solutions to all of the problems noted above. Please follow the links in the left sidebar for detailed information. Or contact me directly:

Stephen Bush
Chief Executive Officer

AEX Commercial Financing Group

Phone: (614) 335-4901

Email — BUSH@AEXLLC.COM

Stephen Bush is a commercial real estate loan and business financing expert. AEX Commercial Financing Group specializes in quick closings for difficult commercial mortgage loans from $250,000 to $25 million and business cash advances up to $300,000 throughout the United States. AEX Commercial Financing Group can also provide working capital by refinancing commercial property.

AEX Commercial Financing Group

Recent events in financial markets have produced lingering uncertainties about the availability of reliable commercial financing for most small business owners. AEX Commercial Financing Group continues to be a key provider of commercial loans, business cash advances, commercial real estate financing and SBA loans throughout the U.S.

AEX Commercial Financing Group has developed highly-specialized strategies for avoiding business financing problems. Information and strategies designed especially for those who will appreciate a conversational approach to commercial financing. Straightforward and candid business financing advice.