We live in an interesting time where much of the interaction we have with service providers is automated or done through email communication alone. Many of the small business lenders featured on lendver.com can even review and approve your loan application in minutes without you ever having to communicate with a real human being. For example, our recommended credit line lender Fundbox, has an entirely automated loan approval process that takes only 3 minutes and it’s all done online.
However, many of the lenders featured on our site do require person-to-person communication. In these instances it is imperative that you conduct yourself in a professional and appropriate manner to give your loan application the best chance of getting approved. Below are helpful tips that will have your lender promptly returning your phone calls and emails, and hustling your loan file toward closing.
Be professional. This starts with effective communication and since most communication you will have with your loan officer will be via email and phone, make sure you stick to some basic guidelines. Some of these tips may seem obvious, but it’s surprising how many people forget the basics like including a name and phone number when leaving a voicemail or sending an email. Other tips, such as keeping an email or message short and to the point will ensure that your lender gets back to you much quicker. Sending an email to your lender with your entire life story may seem like a good idea to you, but if you stick to the questions you are asked, you’ll have a much better chance of getting a fast response. It’s important to put forth a good impression when speaking to your loan representative or an underwriter, but keep it professional. Talking over people, speaking incessantly, swearing or making an inappropriate joke is not acceptable.
Be cooperative. Remember, no loan transaction ever goes perfectly, there is almost always an issue within every file no matter how straightforward it seems. Be part of the solution not part of the problem, even if your loan request seems riddled with roadblocks. Always strive to help move your loan ahead and work through issues with your lender. Complaining and rehashing what went wrong is not productive and won’t encourage your lender to work through issues to get your loan approved.
Don’t be the squeaky wheel. Your loan is certainly important and most lenders are willing to be reminded of that, but calling or emailing your lender nonstop to push your loan faster will have the opposite result. A few pleasant reminders will help prod the transaction along, but being a constant annoyance will risk tarnishing your relationship with your lender and may cause them to pass on your loan application, whether it qualifies or not.
Be respectful. Many people feel entitled to some degree of respect, without feeling the responsibility to respect others as well. If you want people to treat you well and give you the benefit of the doubt, you need to do the same for them; it’s literally the Golden Rule. If you treat your lender with little regard, or like an underling you can order about at will, you will not earn an ounce of their respect and you won’t get their attention or their funds, either. Never forget in which direction the lender-borrower relationship goes; THEY have the money and YOU want it; not the other way around.
Review your documents and summaries for accuracy before sending. Lenders give priority to those applications that are configured and presented in the cleanest and easiest-to-understand fashion. But lenders also have more confidence in proposals and applications that look and sound professional. Make sure your executive summaries and application/loan documents are edited, make sense, are clearly written, easily understandable and organized, and are not password protected. If you are looking for a simple loan process and affordable business financing, SmartBiz can provide up to $350,000 in as little as 2 days and will hold your hand through the entire loan process.
Provide the information requested. If your loan officer, account executive or underwriter asks you for specific information, it is because it’s needed to progress your loan file toward closing. Don’t argue that a requested document should not be needed; if it is being requested, it is needed. And do not purposely omit responses to certain questions just because you don’t know the answer out of hand, or don’t have the time to find the answer at that moment. Your omission will only cause the question to be asked again, and unnecessarily delay your transaction.
Do not falsify or misrepresent information. Always make sure the information you are giving to your lender or account executive is 100% accurate. Purposely providing false information to a lender is not only a crime, but will certainly cause your file to blow up. Omitting adverse information about your loan is just as serious, and is always eventually discovered. Lenders’ due diligence processes are quite rigid; what’s more, because they review thousands of files, lenders can smell when something is not legit. Be honest and straightforward up front, and give yourself the best chance of getting your loan funded while keeping yourself out of trouble.
Disclose up front if you are shopping your transaction. Lenders understand they have to vie for your business; knowing that you have submitted your application to a few other lenders will often inspire them to give you better terms and service. But failure to disclose this, and then taking a loan elsewhere may infuriate a lender who has expended countless hours of work on your deal. Don’t do it — if you ever want that lender’s consideration again.
Don’t forget that a lender is under no obligation to lend you money, and although there are plenty of lenders out there, only a few or even just one may fit your needs. Treat your lender with the same level of professionalism and courtesy that you expect to receive and you’ll reap the benefits. A lender wants to approve and close your loan and is working hard to do so. Being helpful and being easy to work with will make your file a priority and encourage your lender to overcome obstacles should they arise.