Tag: Commercial Lending

Why Specializing in Commercial Verticals Can Boost Bank Profitability


Much has been written about the merits of community banks developing banking expertise around specific verticals.  We recently worked with a bank that won the banking mandate for a family-run funeral home.  At first we were surprised that the term loan was 93% LTV.  But when we looked at the entire underwriting package and the borrower’s financials (showing 3.2X DSCR) we recognized the importance of understanding industry specifics and how the funeral industry might be a perfect fit for many community banks.


The Merits of Specializing


What The Fed Pause Means For Commercial Loan Production

Commercial Lending Strategies

On October 30, 2019, the FOMC decided to lower the target range for the Fed Funds rate to 1.5% to 1.75%.  The decision was not unanimous, and two members voted not to lower the target range.   In the FOMC statement and at the post-meeting news conference, the committee’s communication was clear in that the future path of Fed Fund rate will be data-dependent, and the indication is that the “mid-cycle adjustment” is done.  The key takeaway is that rates may move up or rates may move down in the future depending on economic developments.  The question for many bankers and borrowers is how to v

How Seasonality Impacts Bank Loan Pricing

More Competitive Loan Pricing

Research has demonstrated that companies do not sell their products or services evenly throughout the week, month, quarter or year.  Instead, in many industries, success rates and failure rates fluctuate throughout periods.  This stems from a number of reasons.  Sales reps are motivated by quotas which must be achieved at the end of the month, quarter or year.  Furthermore, clients are conditioned to expect a change in behavior from sales reps and come to expect disc

How Bankers Can Help Commercial Clients With ROI [Calculator]

Commercial Lending

Commercial lending is more competitive than ever and 2017 will likely prove no exception.  To effectively differentiate their services, commercial lenders will need to be thought leaders, understand their market and industries, and provide more insightful advisory services.  One way commercial lenders can differentiate themselves is to help their clients run various return on investment (ROI) scenarios that allow them to make better financing decisions.

Here Is A Proven Sales Script For Bank Commercial Lenders

Commercial Loan Sales

In a previous blog (HERE), we discussed the benefits of sales scripting for commercial lenders.  A sales script is a way for the commercial lender to explain the bank’s sales proposition, and anticipate the borrower’s responses.  It also helps the lender direct the flow of the conversation and most importantly it allows the lender to better listen to the borrower - be

5 Traits That Successful Bank Lenders Share

Successful Lender Tactics

The most successful commercial lenders possess many skills and understand the intricacies of legal, financial and sales concepts.  To be successful in today’s competitive environment, the best lenders continue to find ways of improving their skill set.  We observe that the most successful commercial lenders that we work with consistently demonstrate five important behaviors and traits.

8 Steps To Improve Your Commercial Quote Sheet

Closing More Commercial Loans

Either buried deep in a proposal letter, or attached to the back, lenders will present one of the most important aspects of the commercial term loan – the structure and pricing of the loan.  Many lenders will have their preferred format and presentation style, and certain banks will have a uniform template for lenders to use, however, for the most part we see ad hoc and confusing quote sheets without the elements that we feel are important in providing superior customer service or the compelling information to winning the client’s business.  We would like to share our observations on how a

Understanding Letters of Credit For Commercial Transactions

Using Letter Of Credit For Commercial Loans

In order to serve their customers and perform their duties, commercial lenders should be familiar with the nature and application of letters of credit.  A letter of credit substitutes one credit (for example the borrower) with another credit (typically a financial institution).  The use of letters of credit to reduce risk is very popular in international trade.  However, community bank commercial lenders should understand the nature and application of letters of cred

Branding A Better Commercial Lending Process

The Lending Customer Experience

Your commercial customer is the highest value customer in your bank, right? Your brand, or what your bank stands for, is why that customer is attracted to you. If both these statements are true, why is your commercial transaction process likely the Death Valley of your brand? The more important question is – how is your loan process any different from your competitors and do you add value? The reality is the few banks have a loan process that supports their brand.


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