April 2016

In our previous blog (HERE), we considered the structure of commercial loan documentation and important objectives of certain agreements.  We also discussed common loan concepts that are of particular importance to commercial lenders.  Today, we cover some of the important provisions of the loan documents and explain some of the important considerations when definitive loan agreements are negotiated.  Effective lenders must strike the right balance between protecting the bank and creating a workable document for the cust

A couple weeks ago, we covered 3 of the best, and most underutilized commercial lending prospecting tools (HERE). Due to multiple requests, we build on that today and show lenders and business development officers how to derive contact information out of thin air.  As we pointed out, the art and science of commercial banking sales isn’t taught by traditional education and is largely ignored in banking schools, conferences and training programs.

One difference between a great commercial lender and an average commercial lender is the understanding of loan documents and insightful knowledge of key terms found in loan documents.  In this first part, of two, we will consider the structure of common commercial loan documentation and some finer points about working with these agreements and terms.

Borrower’s and Lender’s Objectives

Lenders typically are thrilled when they bring new customers to the bank. However, some of your most profitable customers are already at the bank.  Bankers are often surprised that, all else being equal (credit quality, loan and deposit size, etc.), existing relationships are more profitable than new relationships.  While part of most lenders’ responsibilities is business development, retaining and enhancing existing accounts is the most important and efficient way to boost your portfolio’s return on assets.