Finalizing a Small Business Administration loan (SBA loan) and refinancing an SBA loan can frequently be among the most difficult commercial mortgage and business financing circumstances for a business borrower. There are successful business loan strategies for both SBA loan situations.
How Difficult Are SBA Loan and Commercial Mortgage Programs?
There are two very different perspectives about trying to buy a business by using an SBA loan and commercial mortgage: (1) Use an SBA loan if it is practical to do so. (2) Avoid an SBA loan whenever possible. These viewpoints are in extreme disagreement because of an SBA loan process that many borrowers view as excessively difficult.
Despite the negative atmosphere surrounding the SBA loan process, it can be worth the time and effort for many borrowers. There are critical business financing and commercial real estate loan obstacles to avoid with an SBA loan, and there is only a small number of capable lenders in this demanding commercial mortgage and working capital area. It is vital for a successful SBA loan program to involve an SBA loan advisor that is skilled at this rigorous business loan system.
Is It Feasible to Refinance an SBA Loan?
Historically it has been difficult to refinance an SBA loan. It is now more practical to refinance an SBA loan using specialized business financing programs. With these new refinancing strategies, it is more practical to obtain SBA loan refinancing than it was previously.
Future planning for business financing can eliminate many SBA loan refinancing difficulties. If the original business loan can be finalized without including an SBA loan, future business refinancing will be more viable. Borrowers should determine if the initial commercial mortgage truly must include an SBA loan.
Typical Commercial Mortgage Misperceptions with an SBA Loan
One of the prevailing views of an SBA loan program concerns the documentation needed to finish the commercial mortgage requirements. The key to a successful SBA loan process is trusting the SBA loan facilitator about what is required. What business borrowers should try to realize before becoming frustrated by the SBA loan process is that any commercial loan process will include substantial paperwork whether an SBA loan is involved or not.
A more serious possibility for business borrowers is that they could end up with an SBA lender that is rarely successful in finalizing SBA loan applications. Judging the SBA loan process by looking at the frequency of both successful and timely outcomes for commercial borrowers, the harsh reality is that there appear to be far more ineffective SBA lenders than effective SBA lenders on a nationwide basis.
Alternatives to SBA Loan Financing - Conventional Business Loan Options
The decision to obtain an SBA loan should be evaluated together with conventional commercial mortgage options. The decision made by a business owner when finalizing the acquisition business loan will directly impact the ability to refinance a commercial real estate loan in the future.
Conventional business financing is usually a viable alternative to an SBA loan. The feasibility of refinancing a conventional commercial mortgage or SBA loan will depend upon the inclusion of an effective business lender and business loan - SBA loan advisor.
Copyright 1995-2007 AEX Commercial Financing Group and Stephen Bush. All Rights Reserved.
How Difficult Are SBA Loan and Commercial Mortgage Programs?
There are two very different perspectives about trying to buy a business by using an SBA loan and commercial mortgage: (1) Use an SBA loan if it is practical to do so. (2) Avoid an SBA loan whenever possible. These viewpoints are in extreme disagreement because of an SBA loan process that many borrowers view as excessively difficult.
Despite the negative atmosphere surrounding the SBA loan process, it can be worth the time and effort for many borrowers. There are critical business financing and commercial real estate loan obstacles to avoid with an SBA loan, and there is only a small number of capable lenders in this demanding commercial mortgage and working capital area. It is vital for a successful SBA loan program to involve an SBA loan advisor that is skilled at this rigorous business loan system.
Is It Feasible to Refinance an SBA Loan?
Historically it has been difficult to refinance an SBA loan. It is now more practical to refinance an SBA loan using specialized business financing programs. With these new refinancing strategies, it is more practical to obtain SBA loan refinancing than it was previously.
Future planning for business financing can eliminate many SBA loan refinancing difficulties. If the original business loan can be finalized without including an SBA loan, future business refinancing will be more viable. Borrowers should determine if the initial commercial mortgage truly must include an SBA loan.
Typical Commercial Mortgage Misperceptions with an SBA Loan
One of the prevailing views of an SBA loan program concerns the documentation needed to finish the commercial mortgage requirements. The key to a successful SBA loan process is trusting the SBA loan facilitator about what is required. What business borrowers should try to realize before becoming frustrated by the SBA loan process is that any commercial loan process will include substantial paperwork whether an SBA loan is involved or not.
A more serious possibility for business borrowers is that they could end up with an SBA lender that is rarely successful in finalizing SBA loan applications. Judging the SBA loan process by looking at the frequency of both successful and timely outcomes for commercial borrowers, the harsh reality is that there appear to be far more ineffective SBA lenders than effective SBA lenders on a nationwide basis.
Alternatives to SBA Loan Financing - Conventional Business Loan Options
The decision to obtain an SBA loan should be evaluated together with conventional commercial mortgage options. The decision made by a business owner when finalizing the acquisition business loan will directly impact the ability to refinance a commercial real estate loan in the future.
Conventional business financing is usually a viable alternative to an SBA loan. The feasibility of refinancing a conventional commercial mortgage or SBA loan will depend upon the inclusion of an effective business lender and business loan - SBA loan advisor.
Copyright 1995-2007 AEX Commercial Financing Group and Stephen Bush. All Rights Reserved.