Is your company facing lay-offs? Or are you looking to start a new career? Then becoming a commercial loan broker might be perfect for you. Being a loan broker gives you the freedom to be your own boss, let’s you take home 100% of your earnings, and gives you the power and prestige of a white collar professional without the expensive and time consuming educational obligations.

At some point, every business owner will need to borrow money. As a commercial loan broker, you act as the middleman for business owners and lenders, helping arrange all types of loans for clients to solve their financing woes.

The very first step to becoming a loan broker is to complete a commercial lending training program. Training provides you with the foundation of knowledge, understanding, and terminology that you will need in order to be able to communicate effectively in the industry. Having this solid foundation will ensure the success of your business for years to come.

What to Expect from a Commercial Lending Training Program

Your commercial lending training program will most likely be split into different sections over the course of a 10-15 days. As previously stated, the point of the training is to provide you with the foundation of knowledge so you understand the industry to the fullest.

  1. Commercial Finance 101 – The truth is that you can’t be a top performer in this industry without understanding commercial finance. To know where a company is at, what type of financing will be the best fit, and what they can qualify for, you need to be able to read their financial statements and tax returns. Every program will start with commercial finance training to make sure you have the strong foundation you will need to operate your brokerage.
  2. Commercial Lending Terminology – Every industry has its own terminology, and the commercial capital industry is no exception.  You need to be able to understand technical terms and how to use them correctly to effectively communicate in the commercial loan industry.
  3. Understanding Finance Vehicles – In order to run a commercial brokerage, you need a deep understanding of the large variety of financing vehicles available on the market.  It’s important that you understand how each vehicle works, its unique pros and cons, when it is the best solution for a client, and why it would be a terrible fit for a client.
  4. How to Asses Borrowers – The heart of offering the best services is being able to match each business with the correct financing for its unique needs, goals, and current situation. In order to do that you will need to quickly gain a deep understanding of your client’s financial situation and where they want to go.
  5. Packaging and Placement – How you package a deal can mean the difference between your client being approved or declined. You need to know the best ways to summarize and present your client’s financial situation when working with lenders. This will also cover all the documentation you will need for each type of deal, how to select the right lenders for each client, and how to overcome obstacles in underwriting.
  6. Closing – Closing deals is half science and half art. The road to success can require overcoming objections from both the client and the lender.  You get paid for being able to resolve these issues and making sure that everyone signs to execute a win-win deal.  We share the tools and scripts for closing deals quickly and consistently by avoiding objections before they occur, and overcoming them when they do.  You then role play numerous scenarios to become comfortable handling objections smoothly.  Our brokers help you throughout the practice, polishing your responses to make certain you are comfortable in each and every situation.

Does The Commercial Lending Training Company Know What They’re Doing?

Although there is no accreditation for commercial lending training programs or companies, there are some things to be on the lookout for when choosing a program.

The instructors in a commercial loan broker training program should have experience at minimum in banking and in the finance industry. You know when you’re in good hands when the instructors are loan brokers themselves. The experience of the instructors is invaluable. They’ve paid their dues and spent time doing what you will be doing. They know the tricks of the trade, can provide valuable insight, and know what potential problems lie ahead and how to avoid them.

Another sign of quality commercial lending training is the company’s network of lenders. They lenders should be top quality and diverse. Although you will be responsible for growing your lender network once you’re on your own, being able to access their network of lenders should provide a solid foundation and allow you to close deals immediately.

Do Your Research

It’s crucial to thoroughly research each training program you’re considering. It’s a big first step for becoming a loan broker and you want to make sure you’re choosing the program that is right for you. We urge you to do as much research as you can before you make a decision.

The Commercial Loan Broker Institute provides the top of the industry commercial lending training program. To learn more about our program visit our Loan Broker Training Page or contact us directly.