Avatar's Blog

» Conventional Lenders Feeling the Pinch

Posted on 7/29/2005
Since the "dot-com bust" of 2001, conventional bank lenders have tightened their lending criteria leading to a virtual stranglehold on business operating capital. This led to many more business bankruptcies and closures, as economic downturns are the times when business most need that capital. Many small business owners turned to personal funds, credit cards, home mortgages and other private funds to fill the gap, which led to lower credit scores and even more difficulty and expense when borrowing was required. The snowball effect had a chilling effect on the economic health of small and large businesses alike.
 
Recently, this policy of chilling out borrowers has come to bite the banking community back. With lower profits and more and more borrowers turning to hard money (private) lenders, banks are getting squeezed out a growing, profitable financial market. As a result, several banks have stopped their trend of tightening their lending criteria every month and some have actually begun to loosen the criteria to encourage more business.
 
If you have a near-bank commercial loan request (a loan request which the bank almost said 'yes' to), contact Avatar Financial Group. We offer some of the lowest cost hard money loans based on imrpoved real estate and can close in a fraction of the time it takes conventional lenders to complete a loan. You'll find the paperwork is significantly less onorous as well - as we don't lend based on your FICO score. Avatar understands what it takes to make a business during hard times.

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