As a result of the distressed economy, few commercial lenders are willing to invest in economic growth due to the fear that we are in the midst of another recession. Subsequently, banks are neglecting the small business sector and are mitigating their previous losses by tightening the overall credit standards for small business loans and raising their loan rates. As a hedge against the lack of interest that banks have shown to the this lending marketplace, private lenders have successfully provided both working capital and debt restructurings on bank portfolio loans for these businesses thus demonstrating that they are both advocates and allies to the small business owner and entrepreneur.

No matter what your political views are as to the cause of the recession of 2009, we can all agree that the rules and standards that govern business finance and lending have changed dramatically in the last three or four years. Small businesses are finding it to be very difficult to obtain conventional bank financing. Even when a business is successful at obtaining a conventional bank loan, the terms and conditions of the loan can be very onerous. In addition, banks are trying to shed their portfolios of these kinds of loans by "calling" in these loans and thus creating an adversarial relationship between themselves and their borrowers that places undue financial stress on these businesses.

Since banks are reticent to fund small business loans, it has become very difficult for American entrepreneurs to expand their companies and create new jobs for both the local and national economies.
Intelligent and ambitious people who have solid new business ideas and models have become somewhat "paralyzed" in terms of undertaking these new ventures because they cannot depend on receiving proper funding from banks to pursue their dreams.

Private lenders have been able to fill this void that has been left vacant by the banks and have provided capital for new business ventures that will act as the "fuel" to drive the "engine" and maintain a flow of capital throughout our economic system. These lenders have become an invaluable source for the entire small business community.

The private lending arena offers all different types of commercial loans including short term working capital loans; commercial mortgages; SBA loans; equipment loans; term loans and others. As commercial loans that are offered by banks continue to sputter, alternative financing and private loans will continue to grow and more entrepreneurs will seek alternative financing for their capital needs.

Business financing firms can also act as an intermediary between the borrower and the bank and can provide the small business owner with expert negotiation skills in terms of restructuring the small business' existing bank debt to ensure that the bank adheres to proper decorum and does not act in an overzealous manner in the negotiations.

In many cases, a business financing firm can negotiate a debt restructuring in which the small business borrower will be the recipient of much improved and less cumbersome loan terms and conditions than the bank had previously offered. These improved terms can include a lower interest rate; a longer term; a smaller monthly payment; less collateral and reduced legal fees.

Small businesses will need to continue to utilize the services of private lenders and business financing firms in order to make sure that their funding requirements as well as their debt restructuring and bank relationship needs are satisfied. Making sure that these needs are met will be critical going forward for all small businesses to become and remain vibrant in this challenging economy.

If you are looking for a business financing firm that can assist you with debt restructuring alternative financing or any of the other services listed in this article, contact Worth Avenue Capital LLC. You can visit their website at http://www.weclosecommercialloans.com