Commercial loan brokers act as a matchmaker for lenders and businesses who have been denied a traditional loan. A loan broker is often the last resort for businesses in need of funding and the loan broker needs to be ready to provide that funding. Every day is different, but most loan brokers will experience certain constants in their daily business.
A loan broker will use specific marketing techniques to attract business owners to work with them. By creating trust and top of mind awareness, clients will remember who to call when they are in need of funding. Once a client has agreed to work with the loan broker, there is often a long list of documentation that the loan broker must obtain, including income verification, assets, credit reports, collateral information, and much more.
Once all of this information is collected, it is time to figure out the best loan type for the client. The loan amount required and the loan-to-value ratio will help the loan broker and the client to determine the best funding options. The client may have already researched the different loan types and may already have an idea of what they require, making this part of the process much faster. Much more often, the broker is responsible for determining the most appropriate type of financing for each client’s individual needs.
Loan Brokers Shop Around
The loan broker will use the information gathered from the client to match them with the best financing options through a pool of lenders. Many lenders will only fund certain types or sizes of business. It is the loan broker’s job to locate the best lender and the best rates for the client’s needs. Loan brokers have access to a variety of lenders and the lenders that one broker works with will likely be different than another loan broker’s lending pool. Clients will often ask for quotes from multiple lenders. The more options, the better.
Loan brokers spend a lot of time counseling and assisting business owners to understand their financing options. Great loan brokers are willing and able to provide clients with as much information on the loan process and their available options as possible. By being a source of valuable knowledge, brokers cement their trust with clients and build long term relationships.
Once all of the initial on-boarding is complete and the client has been matched with a lender that meets their needs, the loan broker enjoys a commission on each funded deal. This makes a career as a business loan broker a very lucrative option.
Every client and every deal is different than the last. No two loans are ever the same and commercial loan brokers are prepared to locate funding for every scenario. From the beginning stages of on-boarding to the final stages of funding and payment, loan brokers are experts building trusting relationships with clients, bankers, lenders and investors.