There is not a single small business lender who does not appreciate a clear, concise loan summary when evaluating a commercial loan scenario. When you submit your borrower’s deal, it’s important that you draft a summary of the deal, including information about your borrower and the loan. Here’s how to write a loan submission summary that will impress a lender and help your borrower:
Include information about your borrower
Your lender will need to know if they’re dealing with an individual borrower, multiple borrowers or a business entity. Be sure to include all relevant information, such as your borrower’s credit score and any financial issues they have encountered in the past.
Provide details about the property
Commercial lenders are always interested in the collateral being pledged. Include information such as the where the property is located, the size of the building, what type of property it is and its estimated value in your summary of the deal.
Let your lender know what your borrower plans to accomplish with this loan
Any commercial lender will be interested in how your borrower plans to use the funds. Be sure to explain why your borrower wants this mortgage and what they will be doing with the money.
Remember, presentation is important
When you’re working on the loan submission summary, make sure that it is professional. Type it up and make sure that the information is presented clearly and concisely. Keep an eye out for spelling mistakes and make sure your numbers are accurate, as mistakes can lead to confusion.
Providing an effective loan submission summary might mean the difference between a quick approval and your deal languishing in the pre-approval stage. It’s important to include all of the information a lender will need to evaluate a deal and to present it in a professional, easy-to-read format. A well-done loan summary helps the lender to make a decision regarding your borrower’s approval more quickly and helps your borrower to get the commercial mortgage they need.