One of the most effective and entertaining portrayals of contingency planning is a movie called "Rare Birds". This movie stars William Hurt and includes variations of the line, "Always have a Plan B". For any business owner who doubts the practical value of contingency plans, the movie will provide a relevant perspective. A contingency plan concept for business financing has been one of the core themes for AEX Commercial Financing Group in successfully completing especially difficult variations of commercial loans.
Contingency planning might be under-utilized when business owners are seeking commercial mortgages, business cash advances and other forms of business financing simply because business borrowers assume that there are not effective alternatives to the commercial financing they are seeking. As a result, many business owners might believe that it would not make sense to explore a contingency finance plan. An enduring benefit of viewing the recommended movie is that it will become second nature to realize at times like this that businesses should "Always have a Plan B".
Plan B contingency commercial financing should be viewed as business insurance to protect a commercial borrower in the event that something goes wrong with their working capital financing. A few examples are provided below.
First, a significant number of local and regional banks have recently decided to pull the plug on future business financing in their lending portfolio.
In most instances, very little advance notice has been provided. If a business has commercial loans or commercial mortgages with a regional or local lender, a Plan B should be developed for...