Business Banking Loans

Business banking loans are an art to create. Each borrower brings a different set a circumstances to the table. Each business has varying strengths and weaknesses that must be addressed in the loan presentation. No two deals seem to be alike in business banking.

Lenders have a toolbox of credit guidelines that can be used to shore up risks presented by borrowers and their businesses. Lenders will often use covenants as monitoring tools to ensure your business stays healthy enough to repay their loan. When loans exceed a certain dollar amount, lenders will often conduct an annual review on the portfolio of loans. This annual “check up” helps the lender monitor good and deteriorating loans in their portfolio.

Matching a banks credit policy to a borrowers specific needs in a way that each party may come to an agreement is really the job of a banker, relationship manager or loan broker. The process of “matching” is truly an art in itself. When looking for a good broker/lender, you need to find out how creative they are in the matching/structuring process of business banking. (Try not to find someone at either extreme.) This can make all the difference in your desired outcome.

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