Small business owners and investors turn to commercial loan brokers when they’re looking to take out a loan for their business. It’s important for commercial loan brokers to have an excellent reputation in order to build trust with their clients. This is why it’s so important for people that are working in this industry to improve their skills through the right commercial loan training, especially if they’re just starting out.

It can be difficult to grasp all of the ins and outs of the industry, but fortunately there are high quality commercial loan training programs available. Taking the time to perfect your craft is an incredible investment for the future. Following are some of the ways that commercial loan training helps you become a better commercial loan broker.

Commercial Loan Training

There are more requirements that businesses must meet than you might expect before your lenders will approve a loan.  The right commercial loan training programs will give you the tools to collect and analyze all of the important information:

Credit score: When you’re evaluating a business that is looking for funds, the first thing that you should check is their credit score. This is an effective way of determining whether or not the lender will be paid back within a reasonable amount of time.

commercial loan training student

Business history & future plan: The age of the business is an important factor. Startup companies can be volatile. One or two large sales do not suggest that more sales are coming down the line, so a deeper evaluation of success metrics must be in place before a loan will be granted. A thorough business plan will provide you with additional insight on the risk versus the reward of funding the venture, and the right commercial loan training will teach you what to look for in each plan. Unfortunately, loan brokers often have to break the information to new business owners that their grand idea must be measurable before lenders will grant funds, and that the less measurable the plan is, the higher the interest rate will be.

Revenue: If the client that you’re working with is consistently hitting their annual revenue goals, this is a good sign. If they’re consistently falling short, ask for an explanation and determine whether or not their actions suggest numbers will improve.

How your client will use the money: Ask your clients how they plan on using the money to get a clearer picture, and limit the loan proposal for these purposes. Your commercial loan training will cover when specific loan types should be used. For example, a line of credit is a poor choice to fund capital investments, but many businesses want the freedom a line of credit offers, even if they are making poor decisions with the funds.

Proper documents: There are many documents that your clients need to provide for you such as bank statements, tax returns, business plans and insurance information. Lenders will want to see the results of several standard business ratios, and they will require evidence to back up business plan documents.

Laws: There are laws that will regulate the loan agreement to ensure that the transaction is legal, so make sure to be well versed in these regulations. Remember, a loan broker is not a lawyer, so steer clear of advising clients on legal matters. What’s important is to recognize when a client needs to consult a lawyer regarding their financial decision making.

Commercial Loan Brokers: Needed by Both Businesses and Lenders

Small businesses often rely on commercial loan brokers to connect them with a lender that will provide the cash, line of credit, equipment loan or commercial real estate loan at a rate that they can afford. Without commercial loan brokers, it would be much more difficult for small businesses to find the loans that they need in order to stimulate growth and get off the ground.

Lenders are also reliant on commercial loan brokers due to the amount of work that’s on their plate. They rely on commercial loan brokers to work with prospective borrowers and to present them with deals that make sense. As a loan broker, you may find yourself advising a client on how to “get application ready” to apply if you know they would be turned down based on their initial proposal. That’s where comprehensive commercial loan training programs come in.

Commercial Loan Broker Training PDF – FREE DOWNLOAD

CLBI has developed a commercial loan broker training PDF for download that gives you inside insights on the steps you need to follow when launching your commercial loan brokerage. Our mission is to provide the top training, coaching, tools and development in the  industry to existing and new loan brokers.

This downloadable commercial loan broker training PDF provides you with a straightforward, easy to follow checklist for launching a new loan brokerage.  It covers:

• Naming guidelines to select a business title that is memorable, discoverable, and available to license
• Business registration steps to establish your business
• First financial steps for your business entity
• Establishing your brand and logo
• Web development steps
• Foundations of Social Media
• Your business toolbox
>• A list of tools to measure client readiness
• Types of pitch decks – both client facing and lender facing
• Success planning checklists
• Reference materials
• Scripts for communicating with borrowers and lenders

In addition to all of these, in the commercial loan broker training PDF you’ll get recommendations on how to develop your foundation of expertise – the types of resources you can gather to help you stand out. The list includes recommendations on how to master your industry network to generate trust and to seed a consistent flow of qualified leads. The PDF provides the basis for training a commercial loan broker to carry out their ongoing active outbound marketing and establishes a framework you can use for continual refinement and improvement of your client tracking and business process.

Download your Commercial Loan Broker training PDF to get the brokerage launch checklist, absolutely free!

Commercial Loan Broker training PDF – Step By Step Brokerage Launch Checklist

We’ve boiled years of experience launching hundreds of commercial loan brokerages into a paint by numbers, step-by-step checklist. Setting up a brokerage is a complicated business, and this tool guides you through every aspect of the process. 

Over 100 steps are compiled into a single, comprehensive list.  This tool used to be available only to clients going through our launch program, but we are now making it available for free download to anyone exploring the industry.

How Commercial Loan Training Can Help

There are a myriad of ways that commercial loan training can teach you how to become a better commercial loan broker. It can be difficult to educate yourself while also continuing to pay your bills. If you liked the loan broker training PDF linked above, the next step is to sign up for a free commercial loan broker webinar training. All of our workshops are focused, detailed and organized to provide real value to the busy professional. It’s an excellent way to start your inquiry into the role and opportunity for loan brokers.

For people that want to continue their education and to dive into a comprehensive loan broker incubator experience but are unable to travel due to work or changing health guidelines, because CLBI offers both on site and online training, you may learn from the comfort of your own home, an online or hybrid online/on site model can accelerate the learning process. Due to the nature of virtual training, you will be able to complete commercial loan training courses at your own pace and schedule. A boot camp style capstone session is also great for refining and finishing your conversational skills with clients while learning from some of the best brokers in the industry. Learners can choose the modules and modalities that work best for them giving them freedom of choice as to the method of commercial loan training that is right for you.

Quality commercial loan training, like that provided by the Commercial Loan Broker Institute also provides you with important marketing skills. Learn to make people aware of your services, so they can reach out and contact you when the time is right. Marketing your commercial loan broker service is foundational in growing your career. After graduation and launch of your business, you will also have access to one-on-one coaching and mentoring from seasoned professionals. This will be a great benefit for those that have specific questions as they face unique loan requests. Program graduates also get a complete toolkit of ready to use resources referenced in the commercial loan broker training PDF to efficiently grow and operate your brokerage.

Are you interested to learn more about where the commercial loan broker industry can take you? Reach out to CLBI to start a conversation.

If you’re looking to improve your abilities as a commercial loan broker, contact the Commercial Loan Broker Institute. We provide commercial loan training and turnkey launch services for new loan brokers that are just starting out in the industry. Our services differ from other loan broker programs, because our clients own their own business rather than purchasing into a franchise program. Lower costs, better training and well prepared professionals are at the root of the CBLI program. Give us a call at (888)-499-2524 or sign up for our free loan broker webinar to learn more.