Business Credit Still Available

By Steve Soffer | Oceanview Lenders
Contact Steve Soffer | Visit Website

Is it harder today for businesses to get credit from banks? No question!

What about the $700 billion economic recovery plan that was passed by Congress, when will the money go into aiding the economy and when can we expect to see things get better? No telling!

Is Oceanview Lenders still able to assist clients who have new or existing corporations receive business credit? YES we can!!

A Tough Credit Market

Each and every current and potential corporate finance client has the fear that credit markets are completely dry and that there is no capital available to finance business activities. Make no excuse, the national economy as well as the global economy is in a horrific state of turmoil. The credit markets are clogged as banks find it difficult to lend money to businesses because of lack of liquidity, their inability to borrow money from other banks without having to pay an arm and a leg, and asset write-down's. Banks just aren't able to raise enough capital to offset their losses. So far, banks worldwide have posted $592 billion of write-downs and losses and they have raised just $442.5 billion of new money, according to the Wall Street Journal. The International Monetary Fund anticipates losses will more than double to a total of $1.4 trillion.

As of the writing of this article, the stock market suffered an unprecedented eight consecutive days of losses and a thirty percent drop in value. Many cities and States cannot find buyers for bonds and Blue-chip corporations are finding it difficult to sell commercial paper. Investors pulled a record $72 billion from U.S.-managed stock and bond mutual funds in September, seeking the safety of government-insured bank deposits as the financial crisis intensified. The pullout continued in the two weeks of October, with an additional $89.3 billion of outflows. Consumers and Investors simply do not have any confidence in the nation's financial system.

Many Banks are Not Lending

What this means for all businesses is that you will have a tougher time getting funding for your day-to-day operations, never mind securing loans for expansion projects. Unfortunately if your business can't access funding on reasonable terms or time, you will likely either raise prices or curtail your operations or both. This could send the economy into a tailspin as everyone from the corner bagel shop to the local hospital to the largest manufacturer suffers. Banks, counter-intuitively, are holding onto their money at a moment when lending is most necessary.

They are either not extending lines of credit to companies or are instituting more onerous terms.

Oceanview Lenders Still Acquiring Credit for Businesses

Businesses of all sizes depend on funding to buy supplies and inventory, make payroll and extend credit to customers while waiting for payments to come in. Most businesses don't keep much cash on hand. They rely on banks' lines of credit to cover them until they get paid by their customers and they depend on bank loans to expand and grow operations. At Oceanview Lenders, we are taking every precautionary step necessary to fulfill and assist our clients to reaching their funding goals. The credit crunch did not start yesterday, it began over fourteen months ago. Oceanview's economic analysts have been monitoring and tracking the progression of this financial crisis. Over the past year we have measured and anticipated more rigid qualification standards for our flagship financing program called 'Tier 1,' which assist businesses in start-up or under five years of history establish unsecured business credit lines equaling $300,000. We have evolved our program in accordance with challenges in the banking industry. As early as eighteen months ago we were able to raise clients $300k in a period of 90 days. Those days are definitely missed however our program still exists and on average clients reach the $300k in twelve months instead of 90 days.

Our statistical data for the month of September shows that we were able to consistently acquire for our new clients an average of $80k to $140k in the first six to eight weeks of the program. These results are extremely important in validating that our banks are still lending to credit worthy clients. Seven years ago, our clients received funding through a network of 1,119 national banks and 73 local banks. Today, as the industry consolidates, we are down to 172 national banks and 36 local banks. This number seems to shrink as time passes. An example would be Well Fargo Bank's current acquisition of Wachovia Bank and J.P. Morgan Chase's acquisition of Washington Mutual Bank. These transactions will hence eliminate two of the top five national banks.

Research & Development

In a time of economic uncertainty, Oceanview Lenders has a research and development team that actively seeks new banking relationships and programs that would be of benefit for our clients. Since we live in a global economy, we must think and do business with the world. What a better place to start than to establish new ties with international banks and investors. Our research team is aggressively developing new relationships with ten of the largest international banks and global investors.

Tighter Credit Standards

As the credit markets are tighter than ever, only individuals and businesses with immaculate credit will qualify for financing. FICO scores do not guarantee immediate approval anymore! This means that there is an immediate change to the way that credit reports are approved. Besides the need to keep low percentage balances on your personal credit report, credit inquiries are now more important than ever. Too many inquiries in a short period of time translates to a lender that a potential borrower is "shot gunning" applications in an effort to acquire as much credit as possible… meaning that the borrower is in desperate need for more cash flow. Banks do not extend credit or loans to businesses that are desperate. This signals the business is sinking fast. We have created an in-house credit analysis team to assist each client with minimizing and removal of inquiries.

No Change to Unsecured Credit Up to $300k

Oceanview Lenders is committed to the needs of our business clients. We vow to assist business clients with the acquisition of business credit that you need and deserve. The changes in the economy have minimal affect to our "Tier 1" credit program. Businesses and individuals that qualify for this program will be able to receive funding for business activities as all of our previous clients have achieved. Oceanview Lenders may be the only source to help small businesses acquire funding in today's dynamic and challenging times. This will enable 'Tier 1' clients to be in an excellent position to establish larger business credit lines once the capital markets are stabilize.

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Business Credit Still Available