Protecting Your Small Business Financing: Is Your Company At Risk of Losing Its Bank Loans?

While Washington is buzzing about the difficulty small businesses are facing to obtain credit, many companies may also be in danger of losing their current bank loans as a result of the recent “Great Recession.” More businesses owners than ever are at risk of having their small-business loans pulled and need to know how to protect their companies if they are in danger of losing their financing.

Small business financing can be pulled for a number of reasons but the most common are either poor financial performance by your business or credit problems experienced by your bank. Additionally, a bank’s financial problems can also lead to its desire to take less risk and reduce your loan balances.

Unfortunately, your bank will generally not tell you your loan will be ‘called’ or not renewed until right before it takes action. It’s a little like when a bank fails and is taken over by the FDIC: We never hear about it until the Monday after the weekend when the takeover happened.

Therefore it’s important to know how to assess the risk of losing your business financing. Small business owners need to know the risks associated with the type of loans their company has and their company’s financial performance. And what do you do if you are at moderate or great risk of having your small business loan pulled or not renewed?

You now know that it’s time to shop your loan or have a professional shop it for you – if you want to continue to have working capital for your business. And don't wait for Obama to unlock credit and reduce regulatory red tape, because there are already plenty of funds available for small businesses that know where to look. Most commercial banks are essentially the same when it comes to credit assessment and the types of loans they can make, so it’s important to work with an experienced recapitalization advisor or small business investment banker now to assist you with the financial restructuring including alternative lending options like asset-based loans to achieve optimal results for your company.

Since 1998, US Capital Partners has been providing prompt, innovative, and reliable financing solutions including lending, corporate financing, and debt re-structuring to businesses across the United States and abroad. If you are looking for financial support, visit US Capital Partners, Inc. at or call (415) 882-7160.