What Is Commercial Bank Consulting?
Business Bank Consulting
Commercial bank consulting is being used by small business owners to help them deal with the many uncertainties surrounding both their current and prospective banks. Commercial borrowers need to be prepared for a number of difficult questions and choices as they attempt to move forward with efforts to obtain working capital and commercial real estate financing. The use of a business bank consultant should assist small businesses in avoiding "bad banks" and finding the relatively small number of "good banks" still operating and actively making small business loans. Asking the right questions about banks is essential in the search for viable small business finance solutions.
A bank is a place that will lend you money if you can prove that you don't need it.— Bob Hope
What Would Bob Hope Say About Today's Banks?
Banking continues to be a living and breathing example of "the more things change, the more they stay the same." Banks have been the bread and butter for humorists such as Mark Twain, Will Rogers and of course Bob Hope. What has changed during the past decade is that banking problems have impacted so many individuals and small businesses in a very negative fashion that humor directed at banks has evolved into anger and frustration.
The failure of almost all banks to provide a "normal" level of working capital financing and commercial real estate loans to small businesses during the recent past is a major contributing factor to the woeful current state of the economy. The banking industry has created a classic example of what Bob Hope was referring to by only lending to those who don't really need the money.
Most small business owners do really need a regular and reliable source of operating capital for their businesses to thrive and grow. Without it, many small businesses are either failing or just limping along. In this unfortunate climate of banks saying "No," it is imperative for the effected commercial borrowers to find alternative business solutions and new dependable sources of small business loans.
Are banks the problem or the solution?
It is impossible to accurately evaluate commercial banks without thoroughly understanding Zombie Banks. This excellent banking analysis not only addresses that serious financial problem but also the growing and larger risks due to Zombie Capitalism.
Stop Waiting for Banks to Fix Anything
When was the last time that banks did anything of a major nature that can truly be perceived as being for the "public good?" Please assume that agreeing to pay penalties in a class action lawsuit does not qualify for this kind of positive recognition. How many more times does the banking industry get to cause financial chaos before they permanently lose the right to be in business anymore? With hard lessons like we have learned about banks and bankers during the past ten years, one conclusion for small business owners should be some variation of the following:
If banks are going to keep insisting that they have done nothing wrong and that they continue to know exactly what they are doing and should therefore be able to invest in whatever they want without any real regard to the risk or potential cost to society if they are wrong, then small businesses need to run (and not walk) and find expert help to deal with these banks. Business bank consulting is likely to be one of the very few practical alternatives for effectively addressing this increasingly awkward situation for most small business owners.
In the ongoing climate of banks saying "No" to small businesses, it is imperative for small business owners to find alternative and dependable "Yes" sources of commercial financing and working capital.
How Commercial Bank Consulting Can Help - Finding Practical and Effective Small Business Solutions That Say "Yes"
When small businesses are stymied in their search for a reliable source of commercial finance funding, increasingly small business owners are taking matters into their own hands by seeking help from different lenders who are willing to say "Yes." There is a growing perspective that "Banks are the problem, not the solution." This candid assessment contributes to a willingness for small businesses to seek non-bank lending help from business bank consultants as well as non-bank lenders. Here is a short list of practical small business solutions that can involve business bank consulting:
- Avoiding "bad banks" and finding "good banks."
- Finding non-bank sources of working capital financing regularly available to small businesses.
- Commercial bank negotiating with either a current or prospective lender. Most small business owners dislike communicating with their bankers so much that they rarely devote enough attention to business bank negotiations.
What Is Your Opinion about Banks and Bankers?
The poll below is measuring your opinion. Not only does everyone have their own opinion about banks, but many of these critical comments have also been widely published in the media and elsewhere. So please choose which of the following actual quotes best express your own opinion about banks and bankers in today's world. If you don't agree that any of the quotes accurately reflects your own banking thoughts, please choose "none of the above."
Commercial Bank Opinion Poll - Everyone Has Their Own Opinion About Banks Today
Here are several banking quotes and banking comments that reflect strong opinions about banks and bankers. Perhaps they reflect reality and perhaps they don't, but here is your chance to weigh in as to whether you agree with them or not.
Which of the following actual quotes best express your own opinion about banks and bankers in today's world?
Zombie Banks and Problem Banks
As if it wasn't already hard enough to navigate the murky banking waters, there are many deeply troubled banking institutions operating right before our eyes. The most prominent examples are "Problem Banks" being monitored by the FDIC and "Zombie Banks" with a negative net worth.
Detailed evaluation of "Zombie Banks" and "Problem Banks" being monitored by the FDIC can be accomplished with commercial bank consulting. There are also critical business lending problems involving working capital loans that can be addressed by an expert small business finance consultant.
Avoidable Commercial Banking Problems
Many (if not all) of the business lending problems noted above and below in this commercial bank consulting article can be either eliminated or avoided with prudent and timely action taken by small business owners. Because small businesses might not have the time or expertise to take required actions, they should consider alternative approaches such as working with a business bank consultant to get the job done.
Improving how you communicate and negotiate with your banker is a critical step in the financial success of your business.
Who Does Not Need Help With Their Bank?
What Did I Hear about Zombie Banks?
If you do not use banks for anything more complicated than a checking account, please pass Go and collect $200. You are in good shape and deserve a gold star for not using banks in ways that can harm your financial health.
But that's about it for those who do not need help with their bank. Our financial institutions have really not been the same since the Glass-Steagall Act was repealed in 1999. Simply put, until and unless this kind of restrictive banking legislation is again put into place, the events of the last 10 years are likely to be repeated over and over again.
Zombie Banks are one of the disastrous by-products from the banking bailout. These banks should not be in business because they have flunked every conceivable test except the one given by bank lobbyists who never met a bank they thought was doing anything wrong. Zombie Banks are not capable of lending "normally" but that doesn't stop them from saying that they are lending normally.
The banks should have been let go.— Sheila Bair
© 2012 Stephen Bush