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Assisting businesses in securing loans can be mutually beneficial for both the business and the commercial loan officer. This banking career entails leveraging knowledge, expertise, and loan products to prospective business clientele. The majority of loan officers are employed by financial institutions within the banking industry. Discover how to embark on a rewarding career as a commercial loan officer.
Procedures
Understand the responsibilities of a commercial loan officer.
- Distinct from other roles in banking, commercial loan officers often conduct field visits to potential business clients.
- They guide commercial clients through the loan application process.
- Alongside information gathering, this process may involve addressing potential loan-related issues.
- Commercial loan officers employed by mortgage brokers may also handle loan processing.
- These professionals often earn commission, typically amounting to 0.5% of the loan amount.
Obtain a bachelor's degree in finance, business, economics, or a related field.
Acquire experience in the banking sector or sales prior to pursuing a career as a commercial loan officer.
- Valuable skills include proficiency in financial statements, business accounting, and cash flow analysis.
Secure a license, a relatively recent federal mandate, if you intend to work as a mortgage loan officer as well.
- Federal licensing necessitates 20 hours of lending education, successful completion of an examination, and a satisfactory background check.
- Individual states may impose additional licensing criteria for loan officers.
- Loan officers must fulfill ongoing education prerequisites to maintain licensure.
Explore lending education programs and continuous education opportunities through banking associations.
- For instance, the Bank Administration Institute of the American Bankers Association offers a Loan Review Certificate program.
- Private business schools also provide resources for this purpose.
Prepare for on-the-job training as a commercial loan officer.
Demonstrate effective communication and interpersonal skills to collaborate effectively with others.
- Loan officers often attend social gatherings as representatives of their banks, providing opportunities to network with potential clients.
Show proficiency above the average level in computer usage and technology, particularly with financial software.
- Given that loan officers often operate remotely, they must rely on laptops and smartphones to access up-to-date information and stay connected with their employer and potential clients.
Reach out to businesses regarding their lending requirements.
- Commercial real estate agencies also serve as valuable resources for commercial loan officers.
Conduct meetings with potential borrowers to gather initial information about their loan requirements and assess their repayment capabilities.
- Remain accessible to address queries and assist with the loan application process.
Evaluate loan applications to ascertain the suitability of the business as a loan candidate.
- Validate application details.
- Utilize underwriting software to review a borrower's credit history, understanding that most commercial loans necessitate additional financial documentation.
- Collaborate with bank managers to determine loan approval.
Guidelines
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For substantial loans, it might be necessary to collaborate with multiple lenders to assemble a comprehensive loan package.
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If you operate as a sole brokerage entity, you may find yourself fulfilling the roles of both a commercial loan officer and a broker.
Cautionary Notes
- Individuals holding commercial loan officer licenses cannot have a felony conviction.
