Category Archives: Business Loans

Top Reasons Why Contractors Can’t Get Loans

Commercial and residential building contractors and sub-contractors have historically been considered high risk borrowers. As such, contractors have found it difficult to get financing from commercial banks. The following will summarize the reasons for concern that commercial lenders have when … Continue reading

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Community Banks and Commercial Loan Syndications

Introduction to Commercial Loan Syndication – Tips for bankers The purpose of this article is to give a small introduction to the syndicated loan market. The target for the article is the underwriter or lender in a community bank that … Continue reading

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Commercial Loan Participations for Small Banks

A loan participation is the sale of a fractional ownership in a loan asset by the bank that has the primary relationship with a borrower “the lead bank” to another financial institution “the participant bank”.  The participation is documented with … Continue reading

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Speculative commercial loans – Sloppy commercial loan underwriting

Commercial loan underwriting is a profession where objectivity and subjectivity work hand in hand. While commercial credit analysis relies substantially on ratios and their comparison with industry standards, there is a lot of customization due to the wide range of … Continue reading

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Working capital lines of credit for exporters

Small business exporters experience difficulty obtaining financing from bank lenders due to the control and collectability problems that might arise from financing foreign accounts receivable. Lenders are hesitant to lend on foreign trade assets, and most lenders would either consider … Continue reading

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