Change management to deal with working capital and business loan changes is likely to increase in importance for small business owners during the next year or two. If they are not properly prepared for the complexity of recent changes as well as anticipated changes for securing commercial loans, business borrowers will probably be unsuccessful in arranging new business financing.

There have recently been a number of small business loan changes for commercial borrowers to cope with, and the situation does not seem to be improving. Rather than focus on the changes themselves in this article (we have published separate reports describing the five major changes that have occurred so far), in this discussion we will address strategies for dealing effectively with the working capital management and commercial financing changes.

The strategies described below should be helpful for most typical situations involving small business loans and working capital financing. Because even the most straightforward business finance circumstances can involve unexpected complications, it is essential for any small business owner to discuss their specific scenario with a business financing expert.

Reviewing the mix of business financing, working capital loans and commercial mortgages (this should include a cost assessment for credit card processing) and then evaluating whether it is feasible to reduce the current business debt levels is a worthy starting point for dealing with small business loan changes. Because banks made it easy to do so, both small businesses and individuals have often assumed more debt than necessary. It is both prudent and logical for small business owners to analyze whether it is viable to reduce their dependence on bank financing now that most banks have effectively made it very difficult to obtain commercial loans.

A variation of contingency planning for their commercial finance needs is a strategy which might prove to be the most helpful for small business owners. This primarily involves formulating a plan which identifies in advance which actions to take if anticipated events take place. For example, it will be prudent for commercial borrowers to anticipate that their current business lender might reduce or eliminate an existing unsecured line of credit (working capital financing not secured by commercial property) because this trend is in fact already gaining momentum with commercial banks in all regions. In another example, many banks are not currently refinancing commercial mortgages under the same terms that they have previously. The possibility that their bank will not refinance existing business debt would be considered by contingency planning which evaluates alternative new commercial lending programs and sources to consider if that were to happen.

For either of the change management strategies noted above (as well as other options for dealing with small business finance changes), business borrowers should involve a small business loans and working capital management expert whenever possible. It is highly recommended that the small business finance expert selected be totally unaffiliated with any current commercial banking relationships for the business. The use of a small business financing expert is itself an effective change management strategy for coping with commercial financing and working capital loan changes.Steve Bush and AEX Commercial Financing Group are a dependable source of business loans. Stephen has offered effective advice to small businesses for 25 years and furnishes merchant cash advances and business financing services