QUESTIONS TO ASK OF A LENDER
- First Question:
- Do you have lending authority? If so, what size loan can you approve?
- ...if not:
- Does your boss have lending authority? If so, what size loan can he approve?
- ...if not:
- Does anyone in your direct chain of command have lending authority? If so, who? What size loan can they approve?
- If no one you can directly talk to - or no one in the direct chain of command of the Business Development Officer you are talking to - has lending authority, then ask:
- Where does the loan package go for underwriting?
- Does the underwriter have lending authority? If so, what size loan can he approve?
- ...if not:
- Does the underwriter's boss have lending authority? If so, what size loan can he approve?
- Does it go to a committee? Does it require more than one signer for approval?
- Is the underwriter specifically assigned to the Business Development Officer you are working with? Or, are they assigned by region? Or, do they receive loan packages randomly?
- Is there a formal review process for loans that are rejected?
- Other questions to help you understand the role of the Business Development Officer you are talking to:
- What is your primary job responsibility or function?
- Are you responsible for products and services other than small business loans?
- Do you have any subordinates? Do you have an administrative assistant or marketing assistant?
- How big a territory do you cover?
- Have you ever had Credit Training? Was it provided by RMA or your bank or an outside trainer?
- Do you have a loan quota?
- Do you receive commission on the loans that close?
