Tag: Loan Origination

Here Are Commercial Lender Benchmarks That Can Boost Performance

Managing Commercial Lenders

In two previous articles on the utilization of scale when it comes to lending, we analyzed certain variables on all commercial mortgages originated in 2017 by all bank lenders. We looked at (HERE) the relationship between the size of a commercial loan and the loan’s profitability.

How a Flattening Yield Curve Exposes Your Borrowers

Protecting Your Borrowers

An East Coast bank booked a $600,000, owner-occupied CRE loan for a five-year term in 2015 at 4.75% fixed.  We know the borrower well, and last month another bank that we work with refinanced that loan on a 10-year term at a 4.61% rate. The borrower received more certainty and a better price.

The Art and Science of a Bank Commitment Letter

More efficient loan closings

In our quest for a more streamlined loan process, one point of friction was the lack commitment letter presentation or understanding. The commercial loan commitment letter bridges the time between loan approval and loan closing. Bankers do a good job at using the commitment letter for its primary purpose, namely to contractually obligate the borrower. According to our Loan Command Pipeline Management statistics, bankers use a commitment letter about 85% of the time.

A Case Study on Bank Product Positioning Strategies

Bank Competition

Almost every bank we talk to complains about the level of competition in their market. The most common statement we hear is “Banking is more competitive in this city than anywhere else in the country.” While many bankers lament about pricing and structure, few banks take the necessary steps to overcome this market challenge. One way to combat these market pressures is to conduct product positioning strategies.

How Is Your Bank Different?

Lending Differentiation

We recently found ourselves 30 minutes early for a bank visit, so we googled the nearest coffee shop.  A Starbucks and a privately owned shop called Kaleidoscope Café was within a five-minute drive.  We drove to Kaleidoscope because we prefer to frequent local establishments and after we had parked we had to walk by Starbucks on our way to Kaleidoscope.  Starbucks was crowded, and there was a long queue at the register.  When we walked into Kaleidoscope, we noticed a substantial contrast.  First, the space was larger, cleaner and brighter with more outside seating when compared to the compe

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

3 Best Ways Your Bank Can Prospect For New Loan Business

Prospecting For New Loan Business

The number one reason that banks struggle to grow their commercial business is their relationship managers don’t have enough time. Credit memos, compliance, administration and a whole host of other tasks take up the day leaving very little time to bundle a steady pipeline of profitable accounts. However, next to streamlining your calling officer’s day, the next largest impediment to prospecting is the lack of knowledge.

How Banks Can Use Rates To Their Advantage (And The Prospect Of Negative Rates)

Handling the current rate environment

It is normal for stock markets to fluctuate, interest rates to vacillate, oil priced to decline and China’s economic growth forecasts to be adjusted (those numbers are mostly made up anyway).  However, the recent behavior in the above mentioned markets is much more volatile than anything experienced over the last few years, and this turmoil is going to change lending and borrowing behavior.  Loan terms, floors, rate resets and debt levels have already been chanced.


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