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For small businesses to succeed in an erratic lending climate, the use of aggressive financing strategies means that some small business finance choices which borrowers earlier ruled out because they were too complicated or expensive might merit a second review. A working capital advances program (also referred to as merchant financing) is a key example of a commercial financing strategy which has probably been a Plan B for many small businesses but not their eventual choice for acquiring more working capital. With a sudden reduction in business lines of credit and an increased requirement for collateral by many commercial lenders, the use of credit card processing to obtain working capital now has more practical appeal for the typical small business owner who needs more cash for their daily operations. (more…)

It is only reasonable to determine if more big problems are lurking in the wings for commercial banking. For the past year, most banks and lenders have been subject to both disastrous operating results and negative publicity. The commercial mortgages activity reported by most banks tells a different story than the portrayal as healthy and normal by bankers and politicians. (more…)