Tag Archives: commercial underwriting

Speculative commercial loans – Sloppy commercial loan underwriting

Commercial loan underwriting is a profession where objectivity and subjectivity work hand in hand. While commercial credit analysis relies substantially on ratios and their comparison with industry standards, there is a lot of customization due to the wide range of … Continue reading

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Working capital lines of credit for exporters

Small business exporters experience difficulty obtaining financing from bank lenders due to the control and collectability problems that might arise from financing foreign accounts receivable. Lenders are hesitant to lend on foreign trade assets, and most lenders would either consider … Continue reading

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Global Cash Flow and the Small Business Loan

Recently, I was part of a bank wide project that reviewed a large sample of the commercial loans in our portfolio. Included in the sample were a few dozen small business loans. The project allowed me to get more acquainted … Continue reading

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Income Capitalization Approach for Commercial Real Estate Lenders

When I interviewed for a credit analyst position more than ten years ago for a previous employer, I met with two people. The first meeting was with the Credit Manager, and the second meeting was with the Chief Credit Officer … Continue reading

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Stress Testing Income Property – Commercial Underwriting

One of the shortcomings that I have noticed in small community bank’s credit underwriting has been the lack of analysis depth on loan requests to finance income producing property. Regulators expect bank lenders to do a good job assessing the … Continue reading

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