Business owners should contact us directly to discuss which of the following functional areas are most important to you and what problems are likely to effect your business loan strategies during 2008: business opportunity financing, business cash advance programs, commercial real estate financing, credit card processing, SBA loans for purchases and refinancing and working capital management programs. According to our clients, the most useful service we have provided over the years has been our continuing series of special business finance reports focusing on common commercial loan problems together with practical and effective strategies for avoiding them. 

During the next several weeks we will be publishing a comprehensive business finance report concerning noteworthy trends during the past year. To help address one of the most negative recent developments, we have initiated a loan officer training program that will provide advanced training for mortgage brokers and loan officers. We also provide referral fees to inexperienced mortgage brokers needing specialized help with specific business loan needs prior to completion of this training program.

One of the bright spots concerning working capital management programs during 2007 has been the increased recognition of business cash advance services as an essential business financing tool for most business owners. However, we have also seen some ineffective and irresponsible providers of merchant cash advance and credit card processing services go out of business in recent months. While on balance that is actually a very positive development, it does emphasize the importance of working with an established, effective and ethical credit card financing expert when exploring the viability of such a specialized commercial financing strategy.

Here are some suggested working capital loan and business finance resources:

Credit Card Processing and Merchant Cash Advance Resources

Credit Card Financing and Business Cash Advance Strategies

Business Loan and Commercial Mortgage Commentary

These resources will provide alternative business cash advance, credit card processing and commercial loan solutions.

According to Stephen Bush, Chief Executive Officer for AEX Commercial Financing Group, "Commercial borrowers should not be surprised to discover that many lenders will offer online business finance applications on their website. AEX has issued a Special Report which describes how and why to avoid the online business loan application trap. It is critical for business owners to understand why it is not in their best interest to use an online commercial loan application and how they should proceed in their search for viable business financing."

Business owners should be especially alert for using an online application approach in conjunction with business cash advance and credit card processing programs. The use of an online business finance application is also commonly found at websites related to commercial mortgage and working capital loan programs.

Commercial Mortgage and Business Financing Choices - Business Loan and Commercial Real Estate Loan Rejections
by Stephen A. Bush



Business owners are likely to be distressed when a business loan application is turned down and will be unsure as to why it took place and how to avoid a similar problem again. For each of the five primary reasons that a commercial lender might decline a commercial real estate loan, a practical solution is suggested for transforming the rejected commercial mortgage into approved business financing.

Two of the reasons (business plans and tax returns) will potentially impact all commercial borrowers. Many commercial mortgage loan officers will start their business loan review by stating some variation of "Can you show me your business plan?" and "We will need to see several years of tax returns."

Commercial projects are frequently too unique for traditional commercial banks. In these situations (even if a commercial borrower has favorable tax returns and an adequate business plan), it is not unusual for the business owner to be declined for a commercial mortgage loan by a traditional commercial lender.

The reasons described do not involve unusual issues. It is likely that two or more of the reasons will be applicable for many commercial loan situations.

Commercial Mortgage Loan Disapprovals: (1) Limited Use Properties

Reason Number One for commercial mortgage rejections: The bank does not generally make business loans for the type of business involved or imposes special requirements that make the commercial loan impractical for the commercial borrower. For example, fewer banks are making commercial mortgage loans for bar/restaurant properties.

Similarly, auto service businesses are frequently given unnecessary (and expensive) environmental reporting requirements. There are many "special purpose" properties such as funeral homes, campgrounds and churches that most traditional banks will not include in their business lending portfolio.

Strategy Number One for converting the rejected commercial real estate loan into an approved business loan: For most commercial borrowers, there are viable commercial mortgage options beyond traditional commercial lender choices.

There are results-oriented business lenders that will readily provide commercial real estate financing for special purpose commercial properties. The best commercial mortgage loan might only be available from a non-traditional business lender when traditional lenders won't offer the required business loan.

Commercial Mortgage Loan Disapprovals: (2) Tax Return Requirements

Reason Number Two for commercial mortgage rejections: Loan underwriters find something on a tax return that disqualifies a borrower under the bank's lending guidelines. This "something" will frequently be insufficient net income, but when business loan underwriters look at tax returns, there are many other possibilities which produce a similar result.

Strategy Number Two for converting the declined commercial mortgage into an approved commercial real estate loan: Business borrowers will never have this reason to worry about if they are applying for a "Stated Income" commercial loan. Very few traditional banks use Stated Income (no tax returns, no income verification, no IRS Form 4506) for a business loan.

Commercial borrowers should seek out lenders using Stated Income commercial loans. However, this strategy will not work for all business loans since there is a maximum loan amount of $2-3 million for most Stated Income commercial mortgage loan programs.

Commercial Mortgage Rejections: (3) Cash Out Limitations

Reason Number Three for business loan rejections: When business refinances their commercial real estate loan and wants to get a substantial amount of cash out, it is common for a traditional commercial lender to limit what the funds are used for and to restrict the amount of cash to as little as $100,000. Even though the bank will provide the commercial loan, if they won't offer the amount of cash requested by the borrower, this is equivalent to a loan disapproval.

Strategy Number Three for converting the declined commercial mortgage into an approved commercial real estate loan: As mentioned above, there are other commercial lending options available. The commercial borrower's mission (and it is not impossible at all) is to use a commercial real estate lender that will allow them to get much larger amounts of cash out of a commercial refinancing without restrictions on what they do with it.

Commercial Mortgage Rejections: (4) Collateral Required

Reason Number Four for commercial mortgage loan and business loan disapprovals: The bank will not make a commercial loan without sufficient collateral such as a lien on personal assets.

Strategy Number Four for converting the disapproved business loan into an approved commercial mortgage loan: Business borrowers should seek out commercial lenders that will not "cross collateralize" assets as a stipulation for getting business financing. This will result in more flexibility for the commercial borrower and preclude unwise (and unnecessary) connections between business and personal assets.

Commercial Mortgage Loan Disapprovals: (5) Required Business Plan

Reason Number Five for commercial mortgage loan and business loan disapprovals: A bank's loan officer determines that the business plan does not support the needed commercial loan.

Strategy Number Five for converting the rejected commercial real estate loan into an approved business loan: Business borrowers should experience fewer delays and profit from dealing with a commercial lender that does not have a business plan requirement  due to several key benefits:

(A) Lower business financing costs by thousands of dollars. An average range for a business plan (prepared according to typical bank criteria) is $5,000 - $10,000.

(B) Reduce commercial loan closing time by several months. Business plans can be prepared before or after applying for a commercial loan, but either way the net extra time required will probably be 1-2 months or more.

(C) If the lender does not require a business plan, there is one less item standing between the commercial borrower and their approved commercial loan.

Copyright 1995-2007 AEX Commercial Financing Group and Stephen Bush. All Rights Reserved.

Credit card processing and business loan strategies are closely connected in many ways. Business owners should not overlook the substantial working capital benefits which will accrue to their business by effectively coordinating credit card factoring and credit card processing. These benefits will increase measurably if a number of common business cash advance and credit card processing problems can be successfully avoided.



Even thriving merchants periodically need more working capital than they can obtain from a bank business loan. One of the most critical business financing tasks for any business is to make sure that short-term cash needs are fulfilled. This is frequently difficult and sometimes impossible for the average business.

Effective and timely use of a prudent working capital business loan is an increasingly critical business financing tool when a business is faced with a short-term cash shortfall. Business owners should be forewarned that there can be a substantial number of potential difficulties in coordinating credit card processing and credit card factoring.

The Use of Credit Card Processing and Credit Card Factoring

Up to $300,000 can be obtained from a business cash advance based on sales volume and future credit card sales for a business. Most business owners can easily document sales volume and credit card processing activity, so sales volume and credit card processing activity becomes a financial asset to the business.

Business Loan Recommendations for Credit Card Processing and Business Cash Advances

Before employing this strategy, businesses should realize that there are several recurring potential problems that they need to anticipate. Ten common credit card receivables problems that business owners should avoid when employing this strategy are highlighted below. Preferred/Recommended business cash advance requirements are shown after each potential credit card processing and credit card financing problem.

(1) Credit Card Processing and Credit Card Financing Obstacle to Anticipate and Eliminate: Closing costs required. Recommended and preferred credit card factoring requirement: Zero closing costs.

(2) Credit Card Processing and Credit Card Financing Obstacle to Anticipate and Eliminate: Fees charged up-front. Recommended and preferred credit card factoring requirement: Zero up-front fees.

(3) Business Cash Advance and Credit Card Processing Problem to Avoid: Collateral required. Preferred and highly recommended business cash advance requirement: Collateral not required.

(4) Credit Card Factoring and Credit Card Processing Difficulty: Financial statements required. Suggested merchant cash advance and credit card receivables requirement: No financial statements required except for larger business cash advances.

(5) Credit Card Factoring and Credit Card Processing Difficulty: Pay off the business cash advance with required fixed payments. Suggested merchant cash advance and credit card receivables requirement: No fixed payment requirement.

(6) Credit Card Factoring and Credit Card Processing Difficulty: Pay off the business cash advance over a fixed term. Suggested merchant cash advance and credit card receivables requirement: No fixed term for repayment required.

(7) Business Cash Advance and Credit Card Processing Problem to Avoid: 2-3 years or more in business required to qualify. Preferred and highly recommended business cash advance requirement: 1 year in business.

(8) Credit Card Factoring and Credit Card Processing Difficulty: Credit scores of at least 680 required. Suggested merchant cash advance and credit card receivables requirement: Acceptable credit scores of 500 and higher.

(9) Business Cash Advance and Credit Card Processing Problem to Avoid: Maximum business cash advance of $10,000 To $50,000. Preferred and highly recommended business cash advance requirement: Maximum cash advance of $250,000 to $300,000.

(10) Business Cash Advance and Credit Card Processing Problem to Avoid: 12 to 24 months of documented credit card sales of $12,000 to $25,000 or more required. Preferred and highly recommended business cash advance requirement: 6 months of $5,000 or more.

Can the Ten Credit Card Factoring Obstacles Discussed Above Be Avoided in All Cases?

Yes. There are credit card factoring programs which bypass all ten of the obstacles listed. It is unwise to accept any of these difficulties when using credit card sales to qualify for a business cash advance.

Of course, not all of these potential problems will be relevant to each commercial borrower. Most commercial borrowers will encounter at least 2-3 of these problems if they are reviewing business cash advance programs that use credit card receivables and credit card processing as the basis for obtaining short term business loans.

Buying a Business Opportunity - Business Loan Options



Attempts to buy a business opportunity will be viewed by most commercial borrowers as complex and confusing when seeking to arrange the working capital business loan. This is usually especially difficult if there is no commercial real estate as collateral for buying a business opportunity. Commercial borrowers should anticipate that business financing choices will be substantially different in comparison to a business acquisition that can be financed with a commercial real estate loan when buying a business opportunity that does not involve commercial property.

Avoiding Problem Lenders When Buying a Business Opportunity

Most commercial borrowers are likely to consider the most important part of the commercial loan process for buying a business to be the choice of a business lender. Not to be overlooked is the importance of avoiding lenders that are not generally successful in finalizing business opportunity financing. By avoiding such lenders, commercial borrowers are likely to avoid many other business financing problems frequently associated with buying a business opportunity. Avoiding problem lenders will be instrumental to the eventual success of both the business loan process and the long-term financial health of the business being acquired.

Refinancing Alternatives After Buying a Business Opportunity

An important business financing factor to include in planning efforts when purchasing business opportunities is that refinancing the business opportunity financing conditions will typically be harder to deal with than the initial commercial loan. There are several new working capital loan programs under development that could significantly change future choices for business opportunity refinancing. Until these new business opportunity financing alternatives are available, it is advisable to obtain the best financing terms when the business is initially acquired and not rely upon future refinancing choices.

Credit card processing is often one of the most overlooked working capital management issues for a business owner. An effective credit card processing program can eliminate many credit card factoring difficulties by implementing appropriate working capital management cost-reduction alternatives.




Credit card financing improvements can provide dual working capital business loan benefits by both eliminating credit card processing problems and providing improved cash flow by enhanced management of a business cash advance program and working capital financing strategies. The total cost benefits of combining a credit card processing program and credit card receivables financing can be impressive and valuable for working capital business loan efforts.

Credit Card Processing Solutions: Reduce Costs

As I noted in an earlier commercial loan article, for any business that accepts credit cards as a method of payment, a business cash advance (obtained via credit card processing and credit card financing) is a critical working capital financing tool that is often overlooked. Even thriving businesses frequently need more working capital than they can borrow via a business loan from a bank. However, what is typically even more overlooked by many business owners is the opportunity to reduce their credit card processing costs at the same time that they obtain a business cash advance via credit card factoring.

AEX Commercial Financing Group, LLC provides more than the usual level of commercial mortgage loan advice at a very agreeable price (free!) while charging modest fees where paid services are appropriate. For most situations, AEX Commercial Financing will not charge any fees other than a commercial mortgage application/processing retainer fee.

AEX Business Loan Strategies - Commercial Mortgage Loan Solutions

Business loans without banks  - AEX non-bank and non-traditional commercial loan programs should be considered for most working capital loan situations, especially for business cash advance programs and commercial mortgages.

Stephen Bush publishes business financing articles throughout the internet community. His articles emphasize business loan problems typically encountered by commercial borrowers and provide recommended commercial loan solutions. He is a Certified Author and has received Platinum Author, Expert Author and Partners status as a Small Business Loans Expert. Stephen Bush is the Founder and Chief Executive Officer of AEX Commercial Financing Group, LLC. Steve has served as a real estate/business financing advisor and worked with small and mid-sized businesses for over 25 years. Prior to founding AEX Commercial Financing Group, LLC, Steve served as an officer in the U.S. Navy Supply Corps and as a financial/real estate consultant. Steve received a BA degree in Business Psychology from Miami University (Oxford, Ohio) and an MBA in Real Estate Finance from the University of California (Los Angeles).

AEX Commercial Financing Group, LLC has built a solid working capital management reputation based upon candid credit card processing advice and working capital loan strategies for avoiding working capital financing problems. Perhaps even more valuable is the AEX Commercial Financing Group, LLC proprietary business financing and commercial real estate financing process for evaluating commercial lenders and eliminating problem lenders from business loan consideration.

AEX Commercial Financing Group, LLC has prepared a concise one-page Working Capital Management Executive Summary about business cash advances, credit card processing, credit card receivables, credit card factoring and working capital loans. The Working Capital Management Executive Summary highlights the following critical information: Five Reasons to Consider Business Cash Advances using Credit Card Receivables. Ten Problems to Avoid with Credit Card Factoring and Credit Card Processing. Six Key Criteria to Qualify for a Business Cash Advance up to $300,000.

AEX Commercial Financing Group, LLC can provide business financing solutions for the four major church financing difficulties: (1) Church properties are unique. Lenders are therefore concerned that if church loan payments are not made in a timely manner and the lender is required to assume ownership of the property, it will be very difficult to find a new owner because of the unique property features. (2) Lenders frequently want "personal guarantors" for church loans, and this requirement is not appropriate for church financing. (3) When church financing is obtained, there are frequently unacceptable terms such as very small loans, low loan-to-value (LTV) of 50% to 60%, short-term loans and high interest rates. (4) Construction, renovation and land acquisition are even more difficult for churches to finance than purchases or refinancing. As a result, needed repairs are often postponed indefinitely and new churches frequently take many years to become a reality.

There are some important short-term working capital loan strategies that are usually more effective than long-term business financing in producing cost-effective working capital management results for business owners. Two of the most overlooked short-term working capital loan strategies are business cash advance programs and short-term commercial mortgage loan programs. Unfortunately there are very few highly-effective providers of working capital management and working capital loan programs. There are also a number of problems to be avoided with a short-term working capital management program, so choosing an appropriate provider is extremely important to any business owner considering a short-term working capital loan program.

The analysis of working capital for a business traditionally focuses on short-term cash flow and short-term liabilities. Even thriving businesses frequently need more working capital than they can borrow from a bank. Prudent working capital management should evaluate the balancing of short-term and long-term debt. Short-term working capital management options are not always adequately considered by business owners due to a common preference for long-term business financing.