How to Reduce Small Business Finance Fees

The ability to keep small business financing fees at an appropriate level is the key to financial success for most businesses.

However, in the current rugged commercial lending climate, many lenders are taking advantage of the situation and grossly overcharging for their business finance services. Such a greedy mentality by commercial lenders should not be acceptable to any commercial borrowers regardless of their situation.

Here is what we are doing to resolve the situation to the best of our ability: (1) AEX Commercial Financing Group is currently providing free business financing analysis (which is usually more candid, practical and effective than most other sources). (2) AEX is not charging any upfront fees for working capital financing. (3) In addition to eliminating fees for all working capital management services, AEX has also reduced fees for commercial loans and business consulting.

The three AEX actions for reducing or eliminating commercial finance fees are intended to be in the spirit of “We’re all in this together” because AEX Commercial Financing Group recognizes that most businesses are experiencing unusual working capital problems.

While AEX will not always be able to provide the specific business financing help that a business owner is looking for, we will usually know if we can be helpful after a brief candid conversation. Our business finance services are available to small business owners located throughout the United States.

Commercial Loans and Bank Rage

In most situations involving commercial loans and working capital, bank rage is emerging as a practical issue for business owners. A substantial portion of the current bank rage can be attributed to how banks are using their scarce resources. Instead of traditional uses like working capital financing for small business owners and commercial property owners, many well-known banks are paying million-dollar salaries and bonuses to employees who have already taken their employers to the brink of disaster. Typically paying as little as three cents on the dollar in cash and leveraging the remainder with debt, banks which should have known better unwisely invested in multiple varieties of what are now referred to as toxic assets. Realistically most will point out that this is no way to run a bank. Meanwhile, the few remaining good banks have effectively been victimized by the outlandish behavior of the many bad banks. Getting beyond bank rage and subsequently moving forward is a prudent goal for any small business — the most practical solution for most business owners is to determine whether their current banking relationship involves one of the bad banks or one of the good banks.

Working Capital and Business Finance Mixed Signals

Business finance funding and working capital financing are producing mixed signals for commercial borrowers. Lenders are cutting or canceling business lines of credit, declining to refinance commercial real estate loans and declining new requests for working capital. At the same time, many business lenders have stated that they are now lending to businesses on a normal basis. The end result is likely to be confusion for small business owners — what matters at the end of the day is having sufficient cash flow to support the operational requirements of their business. The inability to borrow needed funds on an ongoing basis will quickly produce serious consequences for any business because very few businesses are debt-free. Commercial borrowers are likely to focus on locating new sources of capital once they realize that their current lenders might not be up to the task of helping their business financially. Regardless of mixed signals from commercial lenders, business owners should be prepared to take a more active and personal role in small business financing efforts to ensure that their business survives.