Commercial loan brokers act as intermediaries between borrowers and lenders, requiring a bachelor’s degree in a business-related field, strong computer skills, and finance and accounting skills. They analyze business finances and use loan underwriting software to determine eligibility. Sales experience and confidence are also valuable qualities.
Loan brokers serve as a liaison between borrowers and lenders, advocating for loans on behalf of the borrower. Most commercial loan brokers are employed by commercial banks or related financial institutions. To become a commercial loan broker, you may need to cultivate the proper education, training, and experience to ensure success. Loan brokers usually need a bachelor’s degree in a business-related field, strong computer skills, and strong finance and accounting skills to be successful.
Most commercial loan brokers have at least a high school diploma. Many commercial loan brokers who handle larger commercial loans have bachelor’s degrees in finance, economics or business. Almost all commercial loan brokers undergo additional training provided by the company when they find a job.
Training to become a commercial loan broker generally focuses on developing skills that will help determine a client’s eligibility for a loan. These brokers are usually trained to use loan underwriting software that helps evaluate assets, collateral, and other factors considered in securing a loan. Once the broker can verify all of the customer’s financial information, he will need to determine that the institution can provide the customer with a relatively low-risk loan.
Commercial loan brokers are also responsible for analyzing the finances of the business or entrepreneur applying for the loan. A firm understanding of business accounting, financial statements and the ability to analyze cash flow patterns are skills that need to be developed in order to become a commercial loan broker. Some brokers gain experience while working as tellers or customer service representatives for financial institutions.
Those with banking or sales experience are also highly valued by employers. Brokers working on large accounts, such as lending for new apartment complexes or building shopping malls, may need to rely on multiple banking sources to complete the entire loan. A solid understanding of banking systems becomes a valuable asset in those incidences where good banking relationships are vital to the lending process.
Sales experience can also be beneficial for new business contacts. Commercial loan brokers often contact existing businesses to inquire about business plans to obtain finance for new projects or expansions. Brokers often try to convince business owners to take loans from their institution by offering competitive interest rates or customized financing.
Other beneficial qualities for anyone looking to become a commercial loan broker are confidence and a high level of personal motivation. Many successful loan officers are good at working with others, have some level of sales ability, and have well-developed interpersonal and communication skills. In order to gain employment at a financial institution, many brokers also have to pass a background check.
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