Balloons & Bank Calls
This a serious warning about the deep problems developing in Commercial Lending
The Sub Prime mess in the Residential market precipitated the financial crisis and just as things seem to be looking up, the Commercial market is about to give the economy another jolt.
Commercial lenders have not been entirely honest in officially declaring the bad loans they have on their books hoping a rebound will cover their sins. With over $500 Billion of ballooning commercial loans coming due this year, lenders who are all under Government scrutiny, will soon be forced to get honest about their loan portfolios loses and their depleted reserves.
As this scenario unfolds, innocent borrowers, with ballooning loans may well find their original lender unable to renew your balloon loans due to their mounting loss ratios, thus forcing you to scramble in an attempt to refinance with another lender.
Here is the big problem for Businesses with Balloon loans coming due:
The big Wall Street banks with branches on every corner are not lending to Main Street borrowers. The Regional and Local Banks are swamped with bad construction loans and rising defaults on Main Street loans.
So where is the Main Street borrower with a balloon note coming due going to go to get refinanced?
Here at EXCEL Commercial Capital, we have a stable of commercial lenders that are ready, willing and able to entertain good loans, but we have to face the realities of the market too:
· We get loan requests every day from Borrowers who do not yet realize that they are competing for a very small and finite amount of finds available
· With so many loan requests, only those that are prepared with their financial and property information will gain our attention
· If you need a commercial loan, please act like an astute business person by being open, honest, prepared and cooperative to allow us to assist you reach your goals, or you will fall by the wayside to those business people who are
· If you do not know how to be prepared to request a commercial loan, please go to our "Qualifying Tips & Info" section to learn what information is necessary to prepare for a Commercial Loan Request.
· Stack the odds in your favor by being prepared so we can get you to the closing table.
Back to the problems facing Business owners with impending Balloon loans.
Here is the suggested process for prepared and reasonably qualified business owners who are facing ballooning commercial mortgage is 2010 to have a successful outcome.
· Be prepared by getting all your financial and property information together and available
· Reapply to your original lender to renew your existing loan with written terms and conditions that make sense to your present business conditions and cash flow
· Apply to another commercial loan Broker as insurance against the possibility that your original lender does not want to, or can’t, renew your loan.
· If you commercial loan broker brings you a valid offer that makes sense, grab it and get on with your business.
· If your original lender drags their feet with time running out and your Broker can’t produce a valid offer to lend, then turn to our "Commercial Loan Modification" program to see if we can professionally negotiate a modification of your original loan so the property remains in your ownership and control.
The commercial lending market looks like it will get worse before it gets better, so being aware and prepared is you best option to assure your business can survive a ballooning loan in 2010 and beyond.
If you are facing a balloon, a Bank Call or if you have run out of options, let us try to assist you with a "Commercial Loan Modification".
Also see other reports in this section, or our Free Reports Section, for additional information
These are challenging times, but working together we have the best shot to not only survive them, but to prosper.