Financial and Lending Articles from Commercial Capital Training Group

Bankers are Your Best Friend

One of the many questions loan brokers ask is “how can I get more business in the door?” For a loan brokerage business, there are many marketing avenues that work and bring in results fast, but often there is one avenue of business development that is often overlooked. That is the avenue of pursuing and aligning yourself with bankers.

Bankers can be a broker’s best friend, and one of the most profitable referral partners for a commercial loan business. Bankers see many opportunities and deals on a day to day basis from current clients and new clients inquiring about the bank’s services. Remember, banks today only approve about 10% of the business they see, so 90% of deals that they see are being turned away. One of the biggest leverage tools a current business client has with their bank is their depository business checking accounts. So when a client goes in to see their banker for a capital need and the banker either can’t approve them for a loan, or the banker says, “we don’t do that type of financing,” the banker faces the risk of losing the depository relationship. This equates to the client pulling their money out of the bank and going to another bank, which is ultimately not the smartest move either, but this is what the business owner’s rational.

Business checking accounts are one of the most profitable accounts a bank has. This is simply because they don’t pay interest on those accounts to the account holder. It is a very big deal when they lose these accounts. That is why a banker will be inclined to refer a client over to your brokerage firm for financing if the bank can’t do it, because they are essentially preserving the depository relationship. The banker is happy, you’re happy, and most importantly the client is happy.

So the next question that comes up is how to approach a banker. Well you could just walk into any bank and ask to see one, but the better way to do this is to first make a call and introduce yourself. This is called “warming” up the banker. Every bank location usually has a commercial loan officer at that location. This is the person you want to speak to. On that first call you want to briefly tell he or she what your company can do, but the main objective is to invite the banker out to lunch to really sit down and explain the value your company can offer. Every banker loves a free lunch! This technique is also great at getting the banker to really listen to what you’re pitching.

Bankers are more in tune to what you are saying when you take a them out of their environment. While you have their attention, you must clearly demonstrate how your innovative finance company, offering a multitude of financing options, can help their clients. Make it clear to them that your lender is not after the depository relationship, but rather simply out to provide financing for the client. The best part is, since bankers cannot legally accept money for referring business to your company, you do not have to split any of your commissions with them. This makes for a very profitable relationship. After the initial meeting, using tactics such as an email marketing drip campaign can be a great way to stay in front of the banker, and offer a constant reminder that you’re their person to refer business to so they don’t have to say no to their clients.

Building these valuable relationships will only make your commercial loan brokerage business better and more profitable.

5 Big Mistakes Commercial Loan Brokers Make

Running a commercial loan brokerage business can be very rewarding and profitable, but it could also be a struggle if a commercial loan broker falls in to some of the bad habits that we see in the market today. These bad habits can not only hinder a loan broker’s ability to get deals done, but they can also constrain a commercial loan business from growing.

1. Only going after the “Big Elephant Deals”: This is a common trait that we see with brokers in the commercial finance market today. It is gets very easy for a loan broker to quickly calculate commissions on large transactions in the tens of millions of dollars and lose sight of due-diligence and what’s really going on in a particular deal. As commercial loans go up in dollar amounts, they tend to get very complicated in structuring and there are only a few lenders in that space that can do very large deals. Another factor to consider when chasing large is fraud and how legitimate the transaction is. The higher the dollar amount, the closer you have to look at everybody involved in the deal which leads to increased scrutiny on the lenders part. There are also countless people who have “big dreams”, but no money to invest in their own project. Lenders that play in this arena like to have the sponsor or borrower come to the table with a decent amount of liquidity or net worth compared to the loan amount. What can typically happen with brokers is they get a large deal in the door, have the client sign a fee agreement, and then sit back and try to work the deal to death and not concentrate on any other deals because they think they are cashing in on a large commission check. This is a big no no. Often times these deals (if legitimate), take up to a year to close, so in the meantime the broker is starving because no income is coming in. The point we are trying to get across, is a commercial loan broker should always have “bread and butter” financial products that always bring in income and are easy to close while doing large transactions. This way they don’t starve themselves.

2. Not identifying a financials product’s core market: Commercial loan brokers routinely try to market a lenders product without properly identifying the market or demographic that it serves. When marketing any product one has to know the problem that the particular product solves to its users. So with that said, if you know of a problem that a particular industry is going through, and if your financial product can alleviate that problem, that would yield a better return on investment from your marketing campaign. In that marketing campaign, you would highlight the benefits to your audience rather than the features of that particular loan product.

3. Trying to fit a square peg into a round hole: This is one of most common mistakes we see brokers make with lenders. Instead of studying what their lender actually wants and their underwriting criteria, sometimes brokers try to push a deal for approval when it does not meet their criteria for funding. Brokers try to “convince” a lender why they should do their deal. This only creates a sense of incompetency from a lenders view of the broker and leaves a bad taste with the lender. Commercial loan brokers need to study the types of deals their lenders will do and want to do. They should also note the underwriting criteria before submitting a deal so that this can be done by the broker prior to submission to save time.

4. Getting involved with broker chains: Particularly in the commercial finance space, the practice of “broker chains” seems to pop up everywhere. A broker chain is a string of brokers that are involved in trying to find financing for one client. To clarify, you have one client who needs financing going to a commercial loan broker to find financing. The loan broker then goes through another broker who then goes through another broker to find financing. A chain develops and then starts the never ending problems for both the client and brokers involved. Like the old grade school game of “pass on the secret” through a line of children, the more people passing on information the more skewed the message gets and information lost. This happens with a broker chain. Also you have the problem of too many fees. Let’s say each broker wants a point or 1% in the deal and there are 4 brokers involved, then that is 4% that the client has to pay not counting the lenders points if any. The ultimate person who gets burned in these situations is the client. So good etiquette would say not to get involved with broker chains. A commercial loan broker can work on deals from other brokers, but keep it to a one broker maximum with no other parties involved.

5. Not having fee agreements in place first: Without having proper fee agreements in place a commercial loan brokerage business mean nothing. There are so many brokers that don’t have the proper worded fee agreements in place when operating their broker business. Agreements are meant to protect the brokers business and more importantly insure the commissions that are to be paid so without having this agreement in place, it exposes the commercial loan business greatly. Some brokers get excited about a deal and try to get it to a lender before any fee agreement in signed by their client. This of course could cause a problem once the client is disclosed of who the lender is. That is why it is always best practice to get any and all agreements out of the way before a broker spends too much time on any given deal.

5 Tips for Operating a Commercial Finance Business From Home

Working from home comes with many benefits including flexibility, but there are some key points that one should follow to make your home based financial business more successful.

1. Make sure you have a dedicated work space
When operating a business from home it could be challenging to actually find a space that suits your business needs. Make sure your office space allows the noise from the rest of your home or family to be blocked out. Not only will you be able to concentrate better, but when speaking to a client on the phone, you don’t want background noises, like the dog barking, interrupting your call. Make sure you also have a locking door to your office. Most credit agencies that you pull client’s credit reports from will require that as a precaution. Also, it is likely that you will be storing sensitive information on your computer and in file cabinets, so you don’t want just anybody roaming into your office. For safety and protection of sensitive information, always treat your home office like an office in any professional building.

2. Turn ordinary personal expenses into tax deductions
One of the many benefits of running a business from home is that what once were personal expenses now could be considered a business expense and qualifies for a tax write off. Here are some key points to consider when operating a business from home, but as always we recommend you contact a qualified tax professional before opening any business.

• Your real estate taxes on your home
• Interest paid on your mortgage, or rent you pay. Measure your work area and divide by the square footage of your home. That percentage is the fraction of your home-related business expenses; rent, mortgage, insurance, electricity, etc., that you can claim.
• Any type of repairs done to your home.
• Phone bill. It is imperative that you keep your business calls and personal calls separate. It is much easier to track.
• Internet. Most likely you will use the internet for personal reason as well so most tax professionals will deduct a portion of what you pay your internet provider.

One of the most important things to keep in mind is the part of your home you call your office must be used regularly and exclusively for business purposes. The business part of your home must be either your principal place of business or the location where you meet with clients or customers in the normal course of conducting business. For detached garage or other separate structures, the requirement is only that the building is used in connections with your trade or business. You can also claim deductions if you use an area of your home for storage of inventory or product.

3. Structure your Day
If you’re coming from corporate America, you are most certainly accustomed to having a boss over your head looking at your every move. There are clear deadlines that you must meet in order to tackle your responsibility. None of that pressure exists when you are your own boss. You have no one to answer to but yourself. So given that lack of direct supervision, and possible distractions like the convenience of eating whenever you want, turning on your favorite TV show, or taking a nap whenever you’re tired, it is easy to see how time can be wasted during a work day. It is important to set real attainable goals for each week and follow through with those goals. Whether it’s calling 10 prospects per day, taking a banker or CPA to lunch or simply improving on a marketing plan, you have to set goals and make an effort every day to achieve them. To help you in that effort, there are a variety of scheduling programs available to you, such as ACT! from Sage.

4. Look and Sound like a Big Business
One of the many concerns in operating a business from home is the fact that your clients will know that your business is home based. It is a valid concern, but there are many tools to help you look and sound like a fortune 500 business. One of the best ways to convey that you have a professional business is setting up a good phone system with voicemail. Using your home phone line and setting up a one dimensional voice greeting will make your business look one dimensional. Having a toll free (800) number and a professional greeting and voicemail system can really separate you from other home based businesses. One does not have to spend a fortune to have this. There are numerous companies that have voice over IP systems that come with virtual PBX systems that allow you to have a professional voice greeter, multiple extensions, and a dial by name directory. All of this is not that much more expensive than your home phone bill. Since your phone system is a voice over IP system, there is no complicated hardware or software to set up.

Another underutilized aspect that home based businesses neglect is having a professional website. Anybody can have a website these days but not everybody has a professional one. A businesses web presence is like a first impression. If it looks cheap, then people mostly assume that your business is cheap. It is worth spending some money on a professional web development firm to build a website that looks just like any fortune 500 company.

5. You don’t have to list your home address
Many people don’t want to list their home address on their marketing pieces or websites for fear that their clients will somehow know that they are operating out of their home. The reality is that most clients don’t really care where you operate from so long as you can perform what they need you to do, which is procure capital for them. However, there are some options that allow you to post a different address without using a PO Box. There are mailboxes you can use through the popular UPS stores that allow you to have a number like #210, and don’t require you to use the PO Box symbol. Instead of the number sign you can put whatever you like such as “Suite” before the number. This allows you to have the UPS stores address without using your personal home. You can get a mailbox with a real street address and secure 24-hour access to mail and package deliveries. Additional services include mail forwarding, fax receiving and the ability to call in and check for new mail.

Find Your Niche in the Real Estate Market

What are some good niches for loan brokers to focus on in today’s real estate market?

Within the commercial real estate finance marketplace, there are several property types that lenders are more comfortable with financing than others. This is due to the various economic risks each property type inherits. These days, multifamily buildings seem to be the most desirable properties lenders seek out to finance because of the lower risk for default, and because they are more insulated from economic pressures.

But what if a loan broker wanted to pursue more of a niche property type?

There is a surplus of commercial real estate for sale in today’s market which offers some great opportunities for buyers and borrowers. Most loans on commercial real estate may have amortization terms of 20 to 30 years, yet the term for the rate (the period of time the rate is fixed) often is for a far shorter period, 5 years being the most common. One may recall that the prime interest rate was between 7.25% and 8.25% for the period between 2006 and 2008. Many of the loans that originated for commercial real estate between 2006 and 2008 are now coming due for refinance. This creates an excellent opportunity to refinance at the current lower market rates.

There are two areas in particular that present an excellent opportunity for refinance given recent changes in the lending market. Firstly, both fixed and variable rates are substantially lower than they were 4 to 5 years ago. Secondly, changes to the SBA lending guidelines have not only increased the maximum SBA loan amounts, but have added new eligible loan types to the list of qualified business types.

Previously, self-storage facilities were only eligible if more than 50% of the business revenue came from sources other than monthly rents, or from what the SBA considered, “sufficient services.”

The new SBA guidelines now say that a business with “passive income” (i.e. rental income), where the owner controls both entry and exit, are eligible. This now makes almost all mini storage facilities eligible for SBA financing, including Mobile Home Parks!

Additionally, Recreational vehicle parks (RV Parks), Campgrounds, Marinas and similar types of businesses, are eligible for SBA financing if 50% or more of the business’s revenue for the previous year was from transients who stay for 30 days or less at a time. If the business is a start-up, the applicant’s projections must show that more than 50% of the business’s revenue will be derived from transients who stay for 30 days or less at a time.

The best bet right now is to seek out those property types mentioned above that had loans originated 4 to 5 years ago. There are several services available that one can pay to search county records under these property types to seek out.

Many lenders will still pass on these types of properties due to inexperience with (or lack of comfort with) these properties, so there is a real opportunity to focus on a real estate product niche with these. Of course a loan broker has to have the right capital sources, ones that specialize in these property types. The Commercial Capital Training Group has those sources, and they are a part of the core lender base that is introduced to our graduates.

Screening Commercial Loan Deals

Commercial lending is a time-consuming profession that can have big pay-offs if it’s done correctly and with savvy. All types of businesses with all types of commercial lending needs turn to commercial loan brokers to assist them in business growth and development, but not all are truly qualified to receive the loan. Screening commercial loans deals is essential to avoid time and resource draining “loans to nowhere.” These simple guidelines are your checklist to ensuring success in your commercial loan brokerage.

The lack of conformity among loan recipients makes the screening process somewhat lengthy and laborious. While tedious, this step is crucial to avoid a lending pitfall. Be sure the underwriting requirements of your lenders are clear and understandable. Take the time to ask questions. If you do this upfront, it will be easier to immediately turn away any nonviable borrowers.

If the borrower meets the preliminary underwriting requirements, you’ll next need to decide if the loan you offer is fundable. Does the borrower have good growth potential? Can the company actually meet the terms of the loan? Take any warning signs seriously. Your brokerage is a direct conduit for economic growth and the vehicle by which lenders make money and borrowers grow their businesses. A deal gone wrong could ruin your valuable relationship with lenders and put your whole brokerage at risk.

Keep in mind that borrowers with perfect lending scenarios are sometimes easier to process than clients that might have some “imperfect scenarios”. Those with imperfect scenarios will definitely go to independent loan brokers for funding attempts. Be prepared to get a lot of marginal borrowers. Just because these aren’t the “cream of the crop” borrowers doesn’t mean they aren’t viable lending opportunities. The trick is being able to review all financial information, as well as the borrower’s “story,” before creating a forecast to accurately predict how the deal can be funded. While a borrower’s financial information is one of the most essential parts in any lending determination, allowing them to tell their story and clarify any blemishes on the financial report is a good way to find a diamond in the rough. Lenders are willing to hear the borrower’s story, and how they plan on overcoming any problems. It is your job as a loan broker to not only showcase the positives in a credit package, but also highlight the negatives, and give an explanation and plan of how your client will overcome their imperfections.

A great way to increase your chances of working with ideal borrowers is to partner with lenders that offer Loan to Value (LTV) and amortization rates that are competitive with the rates of banks. Those that would have traditionally gone to a bank first might consider reaching out to your brokerage if they know they might get better lending rates. With an increase in business, you will have more flexibility in the types of loans and borrowers you work with, and can weed out those “loans to nowhere” more quickly than before. It allows you to be more “choosey” with who you broker loans for and gives you the opportunity to select only the best candidates.

The screening process is the first and most important part of any loan transaction. Done properly, it can strengthen your relationship with your lenders, help increase your personal income, and create a direct flow of capital to a business in need. While protracted and sometimes arduous, it is the difference between a struggling commercial loan brokerage and a sustainable one. Take the time to thoroughly review your customers’ financial records, but also be sure to listen to the backstory of the record and why the loan is needed.

Protecting your Brokerage Reputation

Anyone can dig to find information about you online. Likewise, anyone can post a negative comment about you on a forum, website or blog. While one would hope that happy clients will share their experience with your loan brokerage with others, it is better to expect that disgruntled and unsatisfied customers will be the ones doing the talking. The speed of which information is processed and shared is mind-blowing. To prepare yourself for any negative comments and to protect you brokerage reputation, engage in these simple procedures to protect from irreparable damage.

Have a positioning statement at the ready for any inquiries about a harsh review of your brokerage. On the chance that you are contacted by a member of the press for a comment regarding a customer’s complaint, have a document detailing some information about you, your history and experience, and the policies you try to enforce on standby to send to that person to clarify your practices. It’s never a good idea to criticize a former customer in the public light; however, be sure to explain your side of the story without being defensive (as this will create the feeling that you are trying to compensate for a mistake you made).

While you can’t completely eliminate bad comments about your brokerage from the web, you can hide them. Work to create as many positive search results are possible. This will push your positive ratings to the top of a search engine result list and demote any negative comments towards the bottom. A good start is with your website. Use search engine optimization keywords in your website copy to make it the first result in a related search. Rely on positive reviews you receive from colleagues and former clients and articles you might have written using your expertise and opinions.

Social networking is another great tool to promote a positive reputation. Social networking sites like Facebook and Twitter allow you to show parts of your personality and merge your professional and personal lives together. LinkedIn might be your best tool for this. Not only does it allow you to include a Twitter feed and link back to your website and social networking accounts, you can ask people you know well, trust and worked successfully with in the past to create a recommendation for you and your services.

Include any charities and non-profits you work with on your social networking pages. It helps to grab the attention of potential customers, shows your concern for the community, and offers negation of any bad comments that might be circulating about you. Be mindful of what you (and your friends and associates) post on your social networking sites. Just because you can control the privacy level on your own account doesn’t mean other people can’t see questionable photos or content regarding you on the accounts of others. If you know better, you should be better.

Sign-up for alert systems (like Yahoo Alerts or Google Alerts) to see when and how your name pops up online. If you see something that isn’t factually true, don’t hesitate to contact the author and correct it. Most people will be open to accepting the clarification. Also, consider registering your own name as a domain name. Having your own website will help to eliminate any confusion with someone of the same name.

Most importantly, be proactive about maintaining a good reputation and defending your status. Don’t be afraid to let your personality shine through. Most people want to work with others like them, and they might better identify with a picture of you wearing a Santa hat at a Christmas party than just through your resume and experience alone. If a negative comment comes up from time to time, have three times as many positive comments from satisfied customers handy to rebut the indiscretion. Chances are the fluke will be seen by your future client pool as a one-off rather than the Holy Grail of your brokerage.

2010 Sees Highest Startup Rate in 15 Years

According to a recent article from CNN Money, “The percent of Americans starting businesses in 2010 and 2009 was the highest in 15 years.” It might seem counterintuitive to see an increase in the number of start-ups during a recession, but because unemployment rates are running high, people are simply creating their own jobs, and are working for themselves. However, running a business can be a real challenge. In order to succeed, new business owners need to have a clear business model and, perhaps most importantly, adequate starting capital.

Since the major banks are still largely ignoring small businesses, there are a high number of entrepreneurs looking for loans from other sources. More small businesses without help from major banks, means an increase in demand for loan brokers.

Entrepreneurs who graduate from Commercial Capital Training Group’s financial training program are exactly the kind of loan brokers who can take advantage of the increased demand for business loans. With an incredibly thorough introduction into the finance industry that includes establishing valuable industry connections willing to lend money, graduates are ready to conduct business right from the start. The entrepreneurs who complete the program, will then be in an excellent position to work with the increased number of entrepreneurs in other industries like construction and the service industry.

While it’s difficult to say how long the trend of increasing entrepreneurs and single-owner start-ups will continue, the article certainly indicates that there is a real demand right now for small business capital. Considering the larger picture, this is evidence that the job market, and the finance industry as a whole, is dynamic, but never without opportunity for skilled and experienced loan brokers with connections to lenders.

For more information about the loan broker training program offered by Commercial Capital Training Group, and why it’s a great entrepreneurial business opportunity, visit the program section of the website.

Being Mindful of Your Own Finance Issues

As a finance professional, a loan broker is considered an expert on money matters. Every day, commercial loan brokers examine the financial records of companies big and small. They review the current standing of the stock market, and most likely, read several trade publications and mainstream business magazines. Still, many loan brokers overlook their own business finances. They fail to protect the hard work they have dedicated to making their brokerages successful by neglecting to enforce proper book-keeping or adequately filing their income levels. These simple techniques will assist in creating mindfulness of your own finance issues.

The first step in being attentive to your brokerage’s finances is to incorporate the business into an LLC, or limited liability company. Doing this adds significantly more liability protection than a sole-proprietorship. In the case of a lawsuit or brokerage deal gone bad, your llc-status will protect your personal equity and helps to separate your personal and professional possessions. Having an Inc. or llc at the end of your company’s name can generate greater tax savings depending on how it is structured. For both legal and taxation reasons, incorporating your brokerage is a smart move to protect it from unfavorable circumstances.

You know the quip “it’s not personal, it’s business?” Keep that in mind with your expenses, as well. For an independent loan broker, the line between business time and personal time can sometimes be blurred. Make sure you know what expenses count as strictly personal, and what may be applicable to your business. Keep receipts separate and engage in good bookkeeping practices. Use software and online tools to help you track how you’ve split your expenses in the past. This will be incredibly useful when filing tax returns.

Be sure you are claiming your “real income” on your personal tax returns. How much are you really bringing home as a salary? The amount you make from each lending deal isn’t really your income. Take into consideration what you spend for office space, printing, mailings, etc. You can still benefit from programs like flexible spending accounts and retirement and college savings as someone who is self-employed, just as you would if you were an employee at a large brokerage firm or bank. Bring all of these factors into account before claiming your annual income.

If you work from home, calculate the square footage of your office and make sure to deduct it from your tax return. Because the home office is part of personal life, it gets overlooked as potential tax savings. In some scenarios, you can claim portions of your home heating and electrical expenses as a business expense. You can also deduct certain amounts of mileage for client meetings and work-related events. Check your tax codes to see if these savings apply to you.

If necessary, hire an accountant or good tax attorney to assist you with your financial information. A certified public accountant (CPA) can review all of your money information and help guide you in making decisions about your independent brokerage. A tax attorney can help you navigate any complicated legal matters that can create hang-ups in your lending business. It’s always good to have a second set of eyes, whether for all of your finance information or only for tax returns.

Even though a loan broker may review loads of financial information each day, the smaller details of their own brokerage’s money matters are often overlooked. From legal issues to taxation requirements, it is important to be mindful of these elements to maximize the income potential of your brokerage and protect yourself from any regulatory repercussions.

Maintaining a Well Prepared Arsenal

Loan brokerage is a profession that can yield high returns on your start-up investments and create a large annual income. You’ve gone through all the appropriate training and any certification you might need, and you’ve read all the literature on how to find success as a commercial loan broker. You probably feel like you’ve got all your bases covered. Have you thought about what other materials you might need in order to run your operation smoothly and successfully? Consider these items to maintain a well-prepared arsenal.

First, make sure you speak extensively with your lenders to be sure you understand what materials and information they require. Depending on the type of loan or the individual preferences of the lender, requirements are sure to differ. Keep a current directory of all your lenders and the financial materials they demand for lending to serve as a quick reference. It is a good idea to check in regularly with lenders to see if they have changed their policies or requirements.

Likewise, understand the legal paperwork that goes along with commercial loan brokerage. Not having the right paperwork completed will undoubtedly hamper the progression of the loan. Scrutiny in this field is fierce, and paperwork mistakes can be costly in many ways. Regardless of whether it’s legal paperwork or a financial requirement from the lender, if you are unsure if it is needed, ask for it anyway. It’s better to have too much information than to delay the lending process by having to back-track.

Loan brokerage is incredibly reliant on email correspondence. It is an easy way to transmit documents and other information. Due to the large amount of emails received every day, an email system that allows for easy archival and categorization is crucial. You will want to organize your emails so you can quickly find information based on lender, borrower, and type of loan. Create labels and categories for your emails that are simple and easy to remember.

Try to utilize an email service that allows you create reminders and place things into your schedule directly from your email. Keeping dates and running on-time is essential in this fast-pace industry. Despite being so email-intensive, you will frequently encounter conference calls, and possibly face to face meetings. Stay on track through the use of a scheduling system that creates automatic reminders for you. Look for email systems that have large memory capacity in emailing (for sending large documents) and immense memory space for archiving past emails.

Loan brokerage doesn’t require a lot of start-up funds, office space, or equipment, but there are a few things that all good commercial loan brokers have in common. First, if you don’t already have one, invest in a smartphone (like a Blackberry or iPhone). You will want to be able to read and respond to emails and view documents when you are out in the field. Download apps that allow you to manage your business information and make the most of your time away from your office. A laptop computer is also good for this.

Consider using an all-in-one printer with fax and scanning capabilities. You can keep all of your documents electronic and will be able to send information quickly. Keep a large-capacity flash drive or portable hard drive handy to back-up electronic information and transmit data between multiple computers. There are online services that allow you to back-up your information, but an external hard drive will serve the same purpose.

Creating a well-prepared arsenal will allow you to easily send information to lenders and borrowers and will make your commercial loan brokerage more efficient. A few simple technological investments and a good understanding of different paperwork and financial requirements will help achieve this. While the recommendations here are great baseline necessities, it is important to use the equipment and information that best fits your situation and needs.

Big Banks Still Snubbing Small Business

Recently, the 2010 Small Business Bank Study was released, and there wasn’t any change in the big banks attitude towards small businesses in 2010 from 2009. Just like Commercial Capital Training Group has been saying all along, big businesses aren’t putting their trust in loaning out capital to small businesses. Only about one third of business owners surveyed in the report claimed they obtained capital from bank loans. That means 2 thirds, the vast majority, are getting loans from other sources. There is definitely a commercial loan funding gap, and it hasn’t gone anywhere in the past two years. And because small and medium sized businesses still need capital, that generates a genuine opportunity for independent commercial loan brokers.

Who better suited for the job than graduates of the Commercial Capital Training Group’s intensive 5-day course? Our graduates are equipped with the skills and knowledge to broker the loans that small businesses need, and they have real sources they’re working with that are willing to loan out the capital. The big banks didn’t change their attitude in 2010, so this trend probably won’t shift anytime soon. Right now there’s a wealth of opportunity for independent loan brokers, specifically our graduates, to provide the small businesses that keep getting snubbed by banks with the capital they need.

Take a look at our comprehensive loan broker training program for more details, or contact us if you have any questions.

Commercial Capital Training Group

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