There are so many financial institutions, lenders and mortgage brokers that receive tens of thousands of loan applications every month from customers and for them; the need for effective commercial loan processing arises. Financial institutions are very particular about this stage of the loan process as the failure of any professional to conduct his/her duties effectively leads to bad loans, one of the reasons for the current global economic downturn.
Commercial loan processing involves the various stages that a particular loan application goes through to ascertain whether the application meets the laid down regulations of particular lender. These are basically the processes that inform a lender whether your loan application should be granted or disapproved. The tedious and complicated nature of this job means that many people in the loan industry are not big fans of it in spite of its obvious importance.
Commercial Loan Application
The first step of commercial loan processing involves the completion and submission of a loan application by an applicant. This is only possible in most Cases after a particular financial institution has assessed the personal and financial circumstances of the prospective applicant such as his /her level of income, current debts, etc. as well as other important considerations such as the purpose for which the loan is being sought, etc. to prequalify the applicant for the loan.
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Access to capital was forever changed by those events. Obtaining business loans in today's highly regulated environment requires special knowledge and skills previously unneeded.
Written by a banker, How To Obtain Business Loans is always humorous and frequently sarcastic. The author aims his wit at the funny (if it weren't so serious) manner in which banks study commercial credit applications. So, while you're being entertained, you'll garner the inside information required to get the business loans you need.
How To Obtain Business Loans is an education in the ways that banks are currently set up, how they operate in the prevailing environment, the way they look at you and how to get the most out of your relationship with them. Rephrased that's who you need to be talking to at the bank, what loans they are willing to do and under what conditions, what's important on your application for financing and how to get your loan approved.
The author has a special knack for making the industry's rules and regulations crystal clear. Blame is laid on a regulatory system which hurts the very individuals it is supposed to help - the small business people of this country. A group, by the way, that creates 80% of the jobs nationwide.
This book is not some macro-economic report on the current status of the economy. You'll hear what's actually happening in our financial institutions from a banker waste deep in regulation and bureaucracy. You'll come away with the knowledge of what really goes on in the boardroom, and how you must adjust to successfully obtain credit. You'll be getting the real story.
How To Obtain Business Loans is an expose like none ever written about the financial service industry. Its contents are highly controversial and thought provoking. In short, the book lets the public in on secrets bankers and government officials have kept close to those gray vests.
The details are given in short-story form, relating actual instances from the author's own experience as a bank officer. With that in mind (as you would expect) all the names and financial figures have been changed to protect the anonymity of the parties involved. Which is why the author was forced to use a pseudonym, so as not to call attention to the institutions that retained him. Readers should take special note that the occurrences/conditions recounted are indicative of all similar sized institutions. Which is to say regional sized banks where most of American business goes for financing.
The applicant will also be required to submit additional documents such as pay slips, bank balances, tax reports, credit reports, etc. as well as business plans and business profiles, if the loan being sought is meant to be invested in that business. Most commercial loans also require applicants to submit some form of collateral such as stocks or bonds, real estate and other forms of guarantees.
The next step of commercial loan processing involves the assessment of the submitted loan documents by a loan officer to determine whether everything is in order. The loan officer may also ask for additional documents to enhance your application and once he/she is satisfied with the documentation regarding the application, the application package is sent to a loan underwriter.
The loan underwriter finally assesses your application by taking into perspective the loan amount being sought, the purpose of the loan as well as the accompanying documents to determine whether to approve your application or refuse it. This normally takes about five working days.
Once the loan underwriter approves your application, you will be handed a letter of intent to sign after which you may be handed any costs associated with your application such as appraisals to settle.
The final stage of commercial loan processing involves the resubmission of the application to the underwriter for approval, after all conditions have been met. Once this stage goes through, the final loan documents will be handed to the applicant for him or her to append the final signature.
The loan will be transferred to the applicant after all the conditions have been met, through a banker's draft, cashier's check or bank wire.
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