The Lender of the Pack: How to Hunt for Business Loans Like an Alpha Dog

The search for a loan is a critical tactic in your business plan. There is a right way to secure business financing that will preserve your lending relationships, maximize your borrowing effectiveness and promote business growth. Be a more durable borrower by following these seven principles for finding loans.

  • Treat your lenders like life partners: Creating a close professional relationship may help you get better loan terms and pricing and may facilitate the credit approval process.
  • Design a compelling request for proposal (RFP): Invest time and money to produce a professional loan request that will represent you in front of the credit committee.
  • Get more than one loan bid: Competition establishes markets.
  • Maintain a current loan quote matrix: A spreadsheet will help you monitor the loan bid process and quickly compare quotes to select a winner.
  • Be discreet: Be a good borrowing partner and avoid shopping quotes to competing lenders.
  • Best and final or sharpen your pencil? Let all competing lenders know the ground rules for bidding.
  • Pick a winner quickly: Bids can go stale due to changes in credit market conditions or within a particular lender.

Finding new debt can be a rewarding experience. Your actions during the bid process will make all the difference in the current loan closing and future debt from your stable of lenders.

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About Michael Shelton

Your Business Coach Facilitating Delegation and Work Group Engagement Michael Shelton has over twenty-five years of business and military accomplishments, including extensive experience with one of the largest, publicly traded real estate investment trusts (REIT). He is a qualified business coach with assignments in cross-functional work group management, strategic planning, unit leadership, joint venture acquisitions, executive education, mentoring, training and merger integration. Michael has accumulated best practices for building committed work groups from more than $4 billion of capital markets transactions and commercial property development. He served as a commissioned officer and helicopter pilot in the U.S. Army, and earned his MBA from The University of Arizona. Michael has served as a major conference panelist and is the author of Cash Flow Rich, Winning Ways to Evaluate and Finance Real Estate. Today, he helps business owners get more work group engagement as President and CEO of Shelton Business Services, LLC in Scottsdale, Arizona. Disclaimer: I don't offer investment, legal or tax advice. Talk to your broker, accountant or lawyer for investment, tax and legal help. I might own stock in the companies I mention on-line. My posts, tweets and other on-line activity are my personal thoughts and don't represent my employer or company.
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