During slow economic periods, your bank may have to tighten up the available funds you are willing to lend to your business customers. As the bank or branch manager, your job is to ensure that you protect the bank’s assets and only approve to underwrite loans where there are minimal risks. You also have to take into account the number of years the business has been in operation, their relationship with your bank, as well as their credit history. It can be difficult telling a customer who has been with your bank a long time that you are unable to approve their loan. Denying applications could have a direct effect on those customers’ deposit accounts. They might become upset and decide to close out all of their accounts and take their banking needs elsewhere.
However, you have another option for those situations where you are unable to approve a commercial loan. Instead of denying the application, you should contact Commercial Lending Corporation (CLC). CLC has access to one of the largest pools of commercial funding available in the nation. So, even though you are unable to approve and underwrite the loan, it does not mean that CLC cannot. In fact, CLC is often able to find the right loan solution for your business customers, with some of the lowest rates, and to approve their application.
By working with Commercial Lending Corporation, you are able to turn your bank into a commercial loan solution provider. You always have the ability to approve the loan application yourself, or refer it over to CLC. This way, your bank is able to maintain your deposit customer base and strengthen these relationships. Further, CLC is able to work directly with your bank to help increase your potential revenues by offering referral or mortgage broker relationships.