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Referring A Deal To A Potential Lender
By Staff Writer

There are certain points a financing broker should understand about a loan they are trying to place before contacting a potential lender to discuss the opportunity.  If the broker does not have the basic information for the lender to establish an initial interest, it is likely the lender will terminate the call and avoid speaking to that broker again.  Lenders will not waste their time with brokers that are not prepared or understand the deal they are trying to sell.

A Lender does not want to be innundated with paperwork to establish an initial interest, a phone call or email summary can be sufficient, and if the deal has merits, then the lender will request the complete package.  Therefore, brokers should do their homework and have a good understanding of the transaction.

Below are a few items the broker should familiarize himself/herself with before contacting the lender:

1. How long has the company been in business and type of business

2. Regions where company operates

3. Type of financing/funding required

4. Use of funds

5. Sales last three years, G&A, NOI and EBITDA

6. Collateral (how much in ARs, equipment, real estate and other assets)

7. Existing debt / creditors

8. Any other relevant information

Being prepared will increase your chances to get your deal funded.