Assistance Through Commercial Loans

A commercial loan, as simply defined, is a funding arrangement that a business can set up with a financial institution. The money from this loan may be used by the business to fund large capital investments or operations that a business may not able to afford. Because of upfront costs and regulation related hurdles, small businesses do not have direct access to the debt and equity markets for financing purposes, and so they rely on financial institutions to meet their financing needs.

Businesses have different lending products to choose from and a line of credit, term loans and unsecured loans are just a few examples. However, small businesses should look around at different institutions to decide which lender offers the best terms for the loan.

Commercial loans are usually for a short term, from 30 days to one year, it could be backed up with a collateral (secured) or unsecured. Banks usually require from the commercial borrowers to submit monthly and annual financial statements.

To start the Business Loans process, your commercial and financial situation is evaluated with the assistance of an commercial loan workout professional. All options will be presented to you for your decision. Lastly, a workout specialist will work to negotiate your commercial loan with your lender to avoid default, increase cash flow and provide you with the best possible loan terms.

There is a commercial loan workout that restructures or modifies an existing loan to improve the terms in the borrower's favour. This workout is an alternative solution with a turnaround time of between 30 to 90 days. It is said that no appraisals or credit checks are necessary. Clients who are considering a commercial loan workout can expect either rate reduction, term extension, reset balloon, forbearance, temporary interest-only payments or temporary no-payments.

With more favourable terms, Private commercial loan workout restructures an existing commercial real estate loan. It is only performed to change loan terms but not to provide funds or refinance a commercial loan. Commercial property like apartment, office buildings, industrial, shopping centers or retail space is allowed for commercial loan workout.

Since many owners are not able to meet their mortgage obligations, commercial lenders are now willing to modify their existing mortgage loans to prevent a default.

Commercial mortgage loans are much more complicated than residential mortgage loans. It is advisable that a professional firm helps you in the process with your lender. For more details about business loans, visit

It is a fact that small business owners are finding it difficult to find commercial loan financing in the current banking climate. For many small business owners, commercial loans and other sources of business financing are the only opportunity or available to get the working capital needed to continue the growth of their business.