|
|
Like this article? PLEASE +1 it! |  |
|
The Various Roles, Banker, Broker and BDO
Written by: Harlan FriedmanArticle Overview: Each of the above can and will help you to solve your financing needs. All of the three are very distinct and have various roles in the approval of your SBA or business loan. By understanding the individual role of each of teh different financing sources you are best ablet to choose who will best meet your needs. All of this is further ecplained in my book GET Your Loan Closed!
 |
Free Download - SBA Loans - What Qualifies as a Small Business By Harlan Friedman |
The Various Roles, Banker, Broker and BDO
The Banker,
being the person that your client is most familiar with is a yes person. They do not want to say anything but yes to their existing banking client. Yes they will get the loan done, Yes they will fund the loan in less than thirty days, yes the rate will be the very best in the market. However, you have to realize that the banker, unless it's a very small community based bank has no underwriting authority. The last thing that the banker wants to do is upset the client banking relationship. For that reason only they say yes to everything. The client leaves the bank excited that their SBA loan or business loan is going to be approved and then they wait for the eventual phone call when the local banker stammers and finally has to admit that the underwriter, (that nebulous person in Corporate whose only responsibility it is to get all the square pegs in the square holes hole before they approve the loan has denied the loan.
The Business Development Officer
Your client has no relationship with that person before they try to get a loan approved. The BDO as he /she is known in the industry is a commission sales person who accepts the loan package in the name of their institution that they represent. The BDO works specifically for one institution, and if the loan does not fit their parameters the loan is denied. The BDO, will always tell the client unless it's a loan that is obviously never going to get approved that the loan parameters that the client has laid out are exactly what the Institution is looking for. The BDO will not work the loan unless its clear that the loan will get funded, they have so many loans that they are trying to process that the loans which are the cream of the crop get the attention the other loans unless someone is following up on a regular basis will fall to the bottom of the barrel. The BDO will get compensated from their institution when and if the loan is approved from the sale of the loan in the marketplace. Typical titles for BDO' are Senior Loan officer, VP Business Development. From the outside they look like senior bank officials with underwriting approval,
but all they are outside sales people.
The Broker
Your client also has no direct relationship with the broker until the transaction is started, but unlike the other two the Broker works directly for the client, The Brokers sole responsibility is to get the deal closed, The Broker has to work with BDO's and bankers. The broker has to sniff out the BDO that can and will get the deal done. The broker has to package the deal to meet the needs of each financial institution, making changes to meet the parameters of each institution which will consider the loan. The broker must act as the CFO of the deal, and meet all the requirements of Senior Underwriters. By choosing a broker over the other two the client is not limited in the exposure to only one institution. The broker will mold each application with the proper resumes, marketing programs, competitive analysis as well as work very closely with loan officers of the different institutions, or if one loan is turned down the clock does not have to start again, but the broker continues working with the banks that have the greatest chance to close the deal.
Lightning Commercial Funding as your broker of choice will work with your clients to get the deal done. Please continue to send us your referrals.
FRANCHISE BROKERS vs FRANCHISING CONSULTANTS
Choosing a Broker
There Are Deals To Be Done in 2009
Equipment Suppliers - Can You Offer Finance Options To Your Customers?
Why it pays to have a network of advisors - part 1
Article Tags: Banker, BDO, Commercial Loans, Financial Broker, SBA Loans
|
About the Author: Harlan Friedman RSS for Harlan's articles - Visit Harlan's website  Harlan A. Friedman, Author & Broker is president of Lightning Commercial Funding Inc., a California Financial broker. He has more than 25 years of experience as an investment banker and financial consultant. Lightning Commercial Funding specializes in Small Business Loans and Commercial Financing exclusively, throughout the United States from the startup of new business to large commercial transactions. Click here to visit Harlan's website   Purchasing Real Estate using the SBA 504 Loan SBA Guarantee Fee Explained The Various Roles Banker Broker and BDO SBA 7A Loan for Business Opportunities and Real Estate Acquisition SBA Loans What Qualifies as a Small Business |
Related Forum Posts
Share this article with your friends. Fund someone's dream.
Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.
by: 
4 Building Blocks of an Effective Talent Management System
Simon Fuller Quotes
Lesson #3: “Tell ‘em quick and tell ‘em often”
Searching for the Stars: How Yang and Filo Took Their Business to New Heights
Salesperson Wimp-Out: I Need Help 
Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Good News Travels Fast
Listen to Your Inner Melody
Ten Reasons to take Notes during Sales Meetings
Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.