There are three primary ways a relationship in between a broker and a banker can work.
- You can get service chances from a lender as a result of that banker’s failure to get the loan request authorized in-house. This may be because of the demand not meeting the lending requirements, or it may just be a location of the market that the bank does not want to pursue.
- You can send out the lender a recommendation. Sometimes, as a broker, one may come across loan requests that are too little for a national lender and would be best managed on a regional level where the bank can record a deposit relationship together with the loan demand.
- You can help a lender keep an existing customer. It is possible that the lender is not able to approve an existing customer’s loan request, however wishes to keep the present deposit relationship with his client. It is typically that lenders will get in touch with a broker to help with a loan request that the bank is unable to offer. Examples which include property based financing items such as factoring or order financing, and frequently, an SBA loan that the bank might not have competence in underwriting.
Where do you discover a great banker referral source?
Start with your own bank. Welcome your local branch supervisor out to lunch (everyone loves a free lunch!) Explain to the Branch Supervisor how you 2 can collaborate to establish company one of the three methods discussed. Ask your Branch Supervisor to introduce you to the location company lender (bank sales people who are devoted to establishing organisation relationships just). Also, a lot of banks divide the financing groups into categories based upon the sales volume or loan relationship. In addition to a service banker, most banks will have a middle market loan provider (a lender that deals with bigger companies), and your branch manager should have the ability to introduce you to his or her middle market lender too.
Regional neighborhood banks and small local banks are also a great source to develop a “banker recommendation source.” Lots of smaller banks were not caught up in the riskier lending practices of the bigger organizations and are still active lending institutions in your private markets. Furthermore, smaller banks are typically a bit more versatile on underwriting requirements for loan requests within the bank’s local market.
Baur of Swiss Startup Factory, Once you and the banker determine each other’s resources, the process will construct, and each of you can acknowledge referral chances quickly. Usually, the best source of business is someone you already do business with. So why not start with your very own banker?