When there’s a client looking to expand their commercial property or business, a commercial real estate loan is the best way for them to secure additional funds for their investment. Nevertheless, there is a lot of due diligence done by potential borrowers to choose the best broker to work with for their commercial loan. They look for certain requirements and the conditions of their broker. They will choose the broker that understands the needs of their business and can provide their business with that much needed push in the market. Listed below are some essential tips so that you can always be the commercial loan broker borrowers choose:
Experience
Borrowers will not want to risk their business by working with a broker who doesn’t have much experience in the field. While extensive experience may not be mandatory, it certainly helps. Like with any other service provider, borrowers understand that working with experienced and reputed individuals can certainly help in securing the funds that they need. Business expansion is certainly not a small task and borrowers want to make sure that the funds you provide as a loan come from a reputed source who understands their business requirements.
If you’re just starting out and lack the years of experience your competitors have, it may be a good idea to think about partnering with another broker who is seasoned in this industry.
Effective Communication is a Must
If a broker fails to keep in regular touch with their client or is unable to answer their phone calls, then there is no reason why you should be trusted. You need to provide regular updates about the progress of your client’s loan and if you fail to communicate effectively and be available then you will lose precious clientele. First time clients will contact you through email or phone calls with questions. It’s important to respond quickly and thoroughly and continue to follow-up if you want their business.
Competitive Pricing and Variety of Products
When you’re a small business that is trying to expand, budgets are often tight and you must choose the broker who has a variety of products designed to serve various business types. Be prepared to answer questions about the prices and interest rates of all of your financing vehicles. Additionally, you must also be able to analyze their business thoroughly to know the exact requirements of their business and determine the size of the loan that will improve their business. You don’t want to be a broker who tries to sell generalized products that will only cover a portion of their client’s expenses.
Have a Timeline for Securing and Payback of Funds
Expanding a business can be excruciatingly important to your client and it is essential that you can provide a clear picture of the loan processing time and payback duration. Your client will use this information to determine the amount of funds to secure, and to determine how good or bad the deal is for their business. Knowing the payment duration helps them to better plan their payments without losing a large portion of profits towards these payments.
Proper Underwriting
It is essential that you have outlined and follow a standardized set of rules when it comes to underwriting loans. Clients want to see that you’re not only professional, but that you provide a transparency of operation. Even if you’re a small time broker, make sure you have a proper set of rules regarding the underwriting of each loan amount.
Following these tips will certainly help you stay ahead of the competition and ensure a steady stream of new clients as well as a large percentage of repeat business.
If you’re thinking about becoming a commercial loan broker or have questions about starting your own brokerage, feel free to contact the Commercial Loan Broker team. We are always ready to take your calls or emails and help you jump start your career as a commercial loan broker.