June 16th, 2011, By Dana Haugh
Banks are calling out— come take our money! Apparently there is quite a large amount of unused capital sitting in these 
credit unions, just waiting to be exploited. And you thought we were in a recession? Deficit who? Local industry specialists remark that this abundance of “extra money” is the result of the competitive lending market and lack of “viable” companies who seek monetary advancements (maybe they should try lending it to the US government). Borrowers have recently begun to associate loans with the threat of insolvency and their trepidation has had an effect on their willingness to acquire such forms of credit.
Lender eagerness is certainly a good thing and if you’re in the market for a commercial real estate loan, particularly on Long Island, this seems to be the time to get one. The surplus of potential lenders means getting an affordable rate for your business is easier than ever. Don’t like so and so’s interest rate on a 30 year loan? No problem— the lender down the street will likely do it for less.
The borrower has the power right now, so be sure to take advantage of it. “Having money on the sidelines is a good thing to a certain extent because for companies that seek capital, it’s there . . . [But] for banks, it’s a challenge in terms of getting
returns,” TB Bank’s market president for Long Island, Ed Blaskey said.
The bottom line: banks are realizing the borrower’s fears of not meeting credit criteria and the risk of potential default- therefore they will be more inclined to work with their potential borrower to find the right rate to ensure everyone is successful.
All information gathered from Newsday