11 Steps How To Become A Commercial Loan Officer (Complete With Pictures)

(doylc.com) How To Become A Commercial Loan Officer - Finding business loans can be rewarding for both the company and the commercial loan officer. This banking career involves selling knowledge, expertise and credit to potential business clients. Most loan officers work for financial institutions within the banking industry. Learn how to become a commercial loan officer for a rewarding banking career.

Steps by Steps :

1. Find out about the duties of a commercial loan officer.

Unlike other banking jobs, the commercial loan officer often works out of the office and makes calls to prospective companies.

Loan officers help commercial customers through the loan application process.

In addition to gathering information, this process may also include addressing potential lending issues.

Commercial loan officers who work for mortgage brokers can also process the loan.

A commercial loan officer is often paid on a commission basis, typically 1/2 of 1 percent of the loan amount.

2. Graduate with a bachelor's degree in finance, business, economics or a related field.

3. Gain banking or sales experience before beginning a career as a commercial loan officer.

Useful skills include preparing financial statements, corporate accounting and cash flow analysis.

4. Get a license, a fairly new federal requirement, if you will also be working as a mortgage loan officer.

Federal licensing requires 20 hours of credit training, passing an exam, and passing a background check.

Individual states may have additional licensing requirements for loan officers.

Loan officers must meet continuing education requirements to continue admission.

5. Check with a banking association for available lending and continuing education programs.

For example, the American Bankers Association's Bank Administration Institute offers a Loan Review Certificate program.

Private business schools are another resource.

6. Prepare to become a commercial loan officer.

7. Work well with others using appropriate communication and interpersonal skills.

Loan officers are often required to attend social events as representatives of the bank. This is a great way to connect with future customers.

8. Demonstrate an above-average level of proficiency with computers and technology, including financial software.

Because loan officers often work in the field, they rely on laptops and cell phones to get up-to-date information and keep in touch with their employer and potential clients.

9. Contact companies regarding credit needs.

Commercial real estate agencies are also a good resource for the commercial loan officer.

10. Meet with prospective borrowers to get preliminary information on borrowing needs and their ability to repay loans.

Be available to answer questions and help with loan applications.

11. Analyze loan applications to determine if the deal represents a good credit risk.

Check the application information.

Check a borrower's credit history with underwriting software, but understand that most commercial loans require additional financial information.

Consult bank managers to determine if credit should be granted.