There are many new challenges which are increasingly evident with commercial mortgages, particularly those involving commercial construction loans. Many commercial financing experts currently project that the changing environment for working capital loans and most other business financing will produce several new but avoidable problems for small business owners.

There have always been complex problems for business owners to avoid when seeking commercial loans. By most accounts, these difficulties are now expected to multiply because we appear to be entering a period which will be characterized by even more uncertainties in the economy. Prior standards for commercial mortgages are likely to change suddenly and with little advance notice by lenders if the current financial turmoil continues.

This article will evaluate why commercial construction loans have become harder to obtain and will discuss possible commercial finance funding solutions. The current economic uncertainties combined with less capital availability for commercial mortgages in general and construction financing in particular means that it is much more likely that borrowers will need to look beyond their regional market area for business financing help. In many areas of the United States, virtually all business construction funding sources are effectively inactive at this time in addressing new loan requests.

Even before business finance funding options became more limited recently, construction loans were generally considered to be riskier than other commercial financing by most lenders. For a commercial lender, the most significant risk factors for commercial construction financing usually include the following: (1) until the new building is completed, a commercial property cannot produce income to repay a loan; (2) a substantial risk factor is the possibility for contractor liens; and (3) many commercial construction projects take more time to complete than originally projected and/or exceed initial cost estimates. Of these factors, the risk of potential contractor liens appears to be a particular concern for commercial lenders because of the deteriorating health of the construction industry. In any event, current delinquencies in loan payments for commercial construction financing are running well above normal.

Construction financing for homebuilders has always been viewed separately by lenders because the eventual owners of single-family homes are individuals rather than businesses. From a commercial lending perspective, it is likely that the current difficulties seen in residential construction are indirectly impacting the availability of construction funding for commercial properties because the potential for contractor liens incurred during residential projects can quickly reduce the financial stability of contractors involved in both residential and commercial construction projects. This is a further reason why lenders are increasingly focusing on the risk of contractor liens as a rationale for providing less construction financing.

The feasibility of real estate investments has traditionally included an enduring theme of “location, location and location” which reflects the importance of a specific locale for investing. This is still an important factor when lenders evaluate the prospects for commercial real estate loans involving both existing commercial properties and new construction. A lender is likely to be most comfortable with a stable to growing revenue stream for a business which will in turn result in a stable to growing property valuation, thus preserving collateral for the commercial mortgage loan.

For the first time in several years, however, we are generally seeing widespread reductions in both residential and commercial property values throughout much of the United States, with some areas of the country exhibiting more volatility than others. A severe recession will result in decreasing income for many businesses over an extended period of time, and it is very difficult for either lenders or borrowers to project when this downward trend will reverse.

Given the difficulty of arranging financing based on location, using non-local lenders can be a practical solution for commercial financing involving both existing commercial properties and new construction. Small business owners should seek straightforward advice from a commercial loans expert who can provide effective strategies for changing and difficult business finance funding situations, especially in light of the challenging commercial borrowing climate prevailing currently.

The first step if you want to solve your debt problems is to know your income and expenses. You must know how and where your money is spent. Knowing your spending is as important as knowing how much money is coming in.

You may someday be the next person who buys the world’s most expensive cup of coffee and bagel if you don’t know where your cash flow stands!

If you said five dollars for a cup of coffee at Starbucks or Dunkin’ Donuts is rather expensive, none would argue with you. Yeah no one but Jake Drehar might.

Jake looked forward to each day was a hot cup of coffee in the morning, the one thing he can’t miss in even in summer heat. Jake started it off with his coffee everyday and it would not be a good day otherwise. Jake walked to the counter at his favorite coffee shop on one Monday near the end of the month. He had known about writing a few checks that month and the balance in his checking account may be running low. He paid with his debit card as he expected his paycheck would be directly deposited into his checking account that day and he had some cash in his wallet. He’d pay cash if the debit card were declined.

When the cost of his coffee was put on his debit card, he was pleasantly surprised, thinking his paycheck had cleared. Then he ordered a bagel and paid for that with his debit card. He received overdraft notices from bank two or three days later. He was assessed a fine not only for each overdraft but he was charged a fee for the bank covering his transactions. Jake’s coffee and bagel cost over $120 because of the two fines and two bank fees!

The experience of Jake is an extreme one but it is common. Endless ways are there to lose track of our finances. We put ourselves in peril of being hit with fees and fines that cause bigger and bigger problems when we do lose track.

We all tend to overestimate how much money we have and underestimate how much we are spending. This is the reason we lose track. Our spending sneaks up on us hence we do this. Moreover, it is amazing how little, everyday expenses add up over the year.

On your way to work each day spending on one medium Dunkin’ Donuts or Starbucks coffee and plain bagel adds up to more than $687 over the course of one year.

Daily purchases have a greater impact on your total expenses than you’d think. Keeping track of what is coming in and what is going out is most important.

Do you want to keep better track of income and expenses? Read *The Road Out of Debt* which offers you simple and ideal solutions for taking control and resolving your financial problems.

Large businesses today increasingly require professionals who can bring together knowledge from multiple resources to address tactical business problems and help develop new business models. This fact provides new break-throughs for accounting professionals who can bring new value in a global, growing and free economy. There is an urgent need for Accounting professionals who are not only trained in the normal accounting standards but also possess the leading integrative and hi-tech competencies with multi-disciplinary knowledge and skills.

Amongst the two genres of accounting- general accountants and CPAs, there lies a substantial of demarcation among the two. Where a general accountant is involved in preparing the disclosures about the various financial letters necessary to assist the executives, regulators and funding sources make better calls; a Certified Public Accountants (CPA) can manage a number of jobs and tasks. CPAs provide advanced income tax preparation and service for a range of customers including individuals, small businesses and corporations. Accountants also perform intermediate-level business consulting work. Depending on the state in which they reside, to maintain their license, every three years CPAs must take up to 200 hours of continuing education courses in order to stay current of changes in their profession.

It is known that all CPAs can be accountants but all accountants can not be CPAs though the two terms are mistakenly used interchangeably. The job and responsibilities of CPAs is considered to be complex than that of accountants. The fact is that no matter what the specific responsibility or the difference between their functions is, they all serve as a primary resource for advice and/or consultation with respect to business matters and financial advice. CPAs can operate in virtually any area of finance including forensics, initial public offerings, corporate governance, preventing, detecting, and investigating financial frauds, finance information technology, especially as applied to accounting and auditing and performance management and other funding.

As you are most likely aware, accurately prepared financial statements are a crucial part of any business endeavor and it calls for the services of highly qualified professionals to do the job. Locating a professional CPA or accountant is a challenge but the process can be made simpler if you do some of preparation. Achieving CPA status takes work, smarts, ethics, and a lifelong commitment to learning. It all begins with countless of hours of some of the toughest business courses at any college or university. Then, after graduation and a year of professional work under the guidance of another CPA, candidate CPAs must pass a thorough test of their business, auditing, and general accounting skills. Their training and unique knowledge perfectly positions them to function as financial managers and strategists, often serving as chief financial officers for medium to large-sized businesses. Other attributes may include the moral ethics defining the trustworthy nature of the candidate and his dedication towards the job.

If you are in search of a professional accounting specialist (CPA, accountant or bookkeeper) in Austin or central Texas, then Austin-Accountants.com is the answer. They are a recognized accounting advisor firm and can help you find the right professional who will protect your interests and your financial assets.