Commercial Lending Training Program & Courses

Evaluate program offerings and choose your path in the exciting loan broker industry

Are you looking to start a new career? Do you have interest in commercial finance? Then a commercial lending training program might be a business opportunity that is right for you. Being a commercial lender gives you the freedom to be your own boss, allows you to take home 100% of your earnings, and gives you the freedom to set the schedule that is right for you.

Commercial Lending Training 101

At some point, every business owner will need to borrow money. This might be to purchase real estate, lease new equipment, open a new location, or a multitude of other uses. Commercial lending training programs give you a deep understanding of each scenario, how to choose the right financing vehicle, and how to align each borrower with the right lender for their needs.

While at first glance this might seem like a simple process, as you go through a commercial lending training program you will find that things can get complicated quickly. Take this seemingly straightforward example: a small business designs uniforms in house and then produces them overseas.

This family run company has one salesperson (the wife) and one designer (the husband), and many of the jobs they receive are small production runs. If a cleaning business, for example, hires three new employees, then the uniforms are selected from a catalogue, the graphics are created and uploaded online, the employee names are entered to be embroidered, and the order is sent off to production.

Now, suppose a local restaurant (and client of our company) receives venture capital to expand across ten states. They will have six locations per state and an average 18 employees per location. The order comes in for 1080 uniforms, and the order needs to be fulfilled within a month. Payment terms are 90 days for orders over 25 uniforms, meaning that the company needs to pay to produce the uniforms on day #1 but the company will not get paid by their client until day #90.

The order is small enough the owner could max out his business credit card, but he doesn’t want to pay the high interest rates on $40,000 of costs. Where is he going to get the money? The company owner hasn’t gone through a commercial lending training program, so he needs immediate help from industry experts.

Commercial Finance Training Courses Fill the Gap

This is where commercial finance training courses come in, preparing you to help local businesses. 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. In this instance there are a few commercial finance options available to the trained eye: purchase order financing, invoice factoring, or a line of credit.

But for many small businesses without an advisor who has taken any commercial finance training courses, they either put it on their credit card, or apply through an online lender. Neither is a good option. We have mentioned finance charges, plus the prime rate, but in addition to the issues with credit cards, the satisfaction rate with online lenders has plummeted as fast as it has grown. Without commercial finance training, most business owners simply select the first option with what seems like the lowest rate. They rarely look at the small print, and of course, going online means there is no one there to help them identify the risks and to point out the hazards in taking the money. These business owners started because of a love of what they do in their companies, not a desire to go through commercial finance training courses to help them know how to obtain capital!

So, how can you become one of these trusted advisors to your business community? The very first step 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.

BUSINESS LOAN BROKER OPPORTUNITY: A DETAILED BREAKDOWN

Before we get into the nuts and bolts of becoming a loan broker, you need to understand the potential for success in this business.  A huge part of being a broker is understanding these markets and how to work with them effectively. So, with that in mind, here is what you need to know about these opportunities.

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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 Training 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 courses 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. What is a bank’s lending “black box?” In what ways could a business become over leveraged? How can EBITDA determine the comparable health of a business in its category?
  3. Understanding Finance Vehicles – In order to run a commercial brokerage, you need a deep understanding of the large variety of financing vehicles available in 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. For example, when is it best to take a loan on existing assets and when can a loan be leveraged against the purchased item itself?
  1.  How to Assess 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. Many borrowers are turned down by banks, even when they have successful, thriving businesses. With the right relationships, there are many lenders that will happily fund these businesses and even form long-term lending relationships to help the business grow and thrive. 
  2. 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. 
  3. 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

Is the Commercial Lending Training Program based on industry experience?

Although there is no universal 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 at a bare minimum have personal experience in the banking and finance industry. You know 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. A sound commercial lending training program is built on a foundation of experience.

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.

The truth is, that while there may be programs teaching finance from a textbook, there are very few commercial lending training programs that are qualified by direct experience.

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Is the Commercial Lending Training Program based on industry experience?

Although there is no universal 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 at a bare minimum have personal experience in the banking and finance industry. You know 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. A sound commercial lending training program is built on a foundation of experience.
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.

The truth is, that while there may be programs teaching finance from a textbook, there are very few commercial lending training programs that are qualified by direct experience.

Research Commercial Finance Training Courses

It’s crucial to thoroughly research each commercial finance 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.

Questions to ask Commercial Lending Training Programs before you start:

How much time have your instructors spent working in the commercial lending industry?

If your primary instructors have fewer than 20 years of experience in the art of loan brokering and if your secondary instructors have fewer than 10 years in the industry, you should dig deeper to understand how the training will be applicable across a range of circumstances.

Do your trainers have both big bank commercial finance experience and private loan brokering experience?

Big banks and private lenders have different regulations that each must abide by. Experience in one area is transferrable, but not directly applicable to another area. Experience in both sectors is a sought after trait to provide context. The two industries are not mutually exclusive and they rarely compete for customers, so understanding how big banks and private loan brokers can work together is an important aspect of sound commercial finance training courses.

What are the size of lending deals your instructors have helped to close during their time in the field?

It is not uncommon for loan brokers to work on projects that are funded between $1 million to $5 million. Doctor’s offices, heavy equipment operators, car dealerships, commercial real estate operators, computer and data centers are all within the realm of the small business. You want instructors who have worked in the “bread and butter” range. You also want to learn how to handle the “small fish” under $150,000 and the “big whales” over $15 million – and you need to know that your instructors have reeled in (and closed) all of these types of deals as well.

Do any of your instructors currently work as a loan broker?

Look for a resounding “yes” to help qualify your commercial lending training program. You want well prepared instructors who can point to recently closed deals and projects in process to demonstrate how the market is shifting under today’s pressures. A decade ago, deals worked differently.

What size are the lending deals that your commercial lending training graduates usually work on?

Graduates should be able to work on deals from $20,000 into the millions. Because loan broker fees are based on funded deals, you want to know graduates are able to work on deals that will pay them fees that make the job worthwhile.

Do some of your commercial finance training graduates have websites I can look at to see what kind of work they are doing?

Find out how comprehensive the package really is. Do graduates get branding and web design as part of their package, or do they have to source designers and design work on their own?

Will any of your previous loan broker graduates directly compete with me in my market?

In some markets there are so many businesses that new loan brokers are needed and a graduate from your program won’t be a direct competitor, and there are ways to develop a specialty that won’t directly compete. That said, you want to know the lay of the land before you start your program.

Where did your instructors receive their hands-on commercial finance training?

Earning a finance or business degree is one thing. It imparts many important skills, but you want to make sure your instructors have been trained in applied skills like packaging deals, salesmanship, relationship building and sourcing. These aren’t things taught at the university, and they are either learned through mentorship, a commercial bank a commercial lending training program.

The Commercial Loan Broker Institute provides the industry leading commercial lending training program in the market today.

With options to learn on line and in person, a full toolbox of ready to go resources, a complete branding package to create your visual identity and to get you into the world through email, web, social media and more, the Commercial Loan Broker Institute is the leading edge of commercial lending training.

To learn more about our program visit our Loan Broker Training Page or contact us directly.

 

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