October 22, 2014
Recently I have written about the qualities of superior commercial loan brokers. This article is the opposite – it looks at some qualities of inferior commercial loan brokers.
Here are some qualities of an inferior commercial loan broker:
- The commercial loan broker asks for an upfront fee and your loan is not a very complex loan. If you have a simple commercial loan and you are being asked for an upfront fee, it is very possible that the commercial loan broker is dishonest. On the other hand if you have a commercial project such as a 100 story building in New York City, an upfront fee may be appropriate. But, even then do a background check on the company and talk to a number of their customers in your due diligence process
- You ask for testimonials and references and the commercial loan broker refuses to give them to you. This likely means they have something to hide.
- You have important questions related to your loan and the broker won’t take the time to answer them. Unless your questions are trivial, a good commercial broker should take the time to answer them.
- The commercial loan broker has little experience. The exception would be a new commercial loan broker who works very closely with an experienced commercial loan broker. An inexperienced loan broker could make major mistakes that could be very costly to you.
- The broker you contact is unfriendly, rude, or doesn’t sound like their interested in talking with you. Friendliness is a very important quality to have in the business world.
- The commercial loan broker is pushy – he tries to push you to decide on something when you are not ready. You need to always be encouraged to decide what you want on your own without being pushed.
- You have an intuitive or gut feeling that you should not work with a particular broker. Listen to that feeling. It’s quite possible it’s communicating something you need to listen to.
- The commercial loan broker takes a lot of time to return calls or worse, is slow to process your loan. Pick someone who works quickly at any level of the loan process.
Call or email me if you have questions concerning this article, apartment loans or other types of commercial loans. You can reach me at 214-695-7310 and email@example.com
Bruce Painter, Director of Marketing, Business Loan Store