Tonight I want to address why I believe that Biz Ops or Business Opportunity loans are becoming the dinosaur of 2008.
Some people would say the reason is that the banks are being tighter on credit, and that is the reason they do not want to lend on biz ops. Others may point to the lack of collateral for a business opportunity as the reason why the lenders don't want to lend. Still others will suggest the high failure rate of businesses in today's economy. And all of these answers would be right.
BUT...
I don't believe that they are the real reasons. I think the answer is purely greed of the lending community. What do I mean, I can hear you asking yourself? The answer in plain simple English is that the banks don't have a secondary market to sell these loans to anymore.
Before this debacle lenders would sell their SBA 7A Biz op loans to the secondary market for at least five to ten points, yes you heard me correctly five to ten points. Now there is no one to buy the loans, so why do them anymore. So even if Credit is loosened up as both Presidential candidates are advocating do not expect biz ops to be re-instated unless the secondary market comes back and lenders can once again sell their loans.
For more on the lending process ask me about our 95 page Special Report, GET Your Loan Closed!
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