Customer Due Diligence

Asking the right questions

Not All Questions Are The Same

A client asked us to underwrite a loan to a wedding planner.  The Borrower was an S-corporation that helps couples find all the vendors for a wedding (DJ, catering, florist, photographer, etc.). While we were reviewing the application, we …

Declining a commercial loan

When To Say No: Declining a Commercial Loan

Earlier this year we discussed prospect screening. A good screening process will help to weed out prospective Borrowers that don’t fit your institution’s credit risk profile. But, these processes aren’t perfect. How can declining a commercial loan …

Customer Selection

Sorting the Good Prospects From the Bad

Many lenders consider some form of pre-underwriting or executive summary as a way to help lenders sort out good prospects from the less desirable prospects. If your institution hasn’t implemented a customer selection process what can you do? …