I'll provide a quick, contextual run down of my business. I operate Biz2Credit a large small business marketplace that connects entrepreneurs to financing options. We match business owners with prospective lenders and financial products based on a proprietary analysis of the business, preferences of the individual and terms of conditions of the loan. We're fairly right on when it comes to match-making, and we've had the pleasure of helping many entrepreneurs grow their business.
Today, I came across a case that really exposed a problem with today's credit environment. The financing request came from a profitable, compelling, creditworthy business entity that owned substantial collateral. They had never missed a payment and had a spotless credit report. In every way, they were the "perfect borrower." We matched them with a loan product that met their financing needs and they were almost completely through the financing process when the lender came across their mortgage type. Like most of America, they have an Adjustable Rate Mortgage (ARM), which immediately disqualified them from this product. Easy enough to fix - right? Lawmakers are taking great strides to encourage lenders to provide loan modification support. Wrong. The worse the credit history, the easier it is to modify your loan. If you're missing payments and late on your mortgage - good news, you're going to get a break. Unfortunately, it's more difficult to get your mortgage modified if you have been paying on time and do not have any financial hardships. My client would have to miss mortgage payments to get a business loan that they would not qualify for if they missed mortgage payments. We're truly in interesting times.
If you have any questions regarding financing for your business - please feel free to ask.
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