What to Expect When You Get a Commercial Loan
From the initial meeting to approval, this article discusses what you can expect during each step of the Cadence Bank loan process.
When you get a business loan through Cadence Bank, you'll have a team of bankers supporting you. A relationship manager guides you throughout the loan process, while a treasury management specialist provides product expertise along the way. Through in-person meetings, our bankers develop a deep understanding of your lending needs and how our lending services can best meet them.
“We're a relationship bank. We don't just provide loans to businesses,” says Maurice Champion, Executive Vice President and Business Banking Manager. “When we lend, we focus on building a relationship with you and understanding your business goals. That’s how we know we can do the best job.”
From the initial meeting to loan approval, this article discusses what you can expect during each step of the Cadence Bank business loan process.
Our business loan process
Wondering how to apply for a business loan? Whether you’re in need of a business term loan or line of credit, here’s an overview of our four-step loan process:
- Meet and listen.
- Gather documentation.
- Meet to review the discussion term sheet.
- Provide a loan decision.
Learn more about each of these steps below.
1. Meet and listen.
“Generally, the first step is to meet with the client. We like to go to them to see their operation and have a thorough conversation about what they're looking for. We listen to discern their business challenges , and then we move towards fulfilling their unique needs,” Champion says.
He explains how other banks may schedule a phone call for the initial meeting and then send an email requesting any necessary information. Champion feels this process isn’t always the most effective way to learn why a business needs a loan.
“The initial meeting with a client is one of the things we do to make our process better and more intimate so we can deliver the best solutions,” he says. “When we sit down to meet you, we really want to understand: What's the motivation? What opportunities for improvement and/or growth have you identified, and how can we be a part of them?”
“A key aspect of Cadence Bank’s loan process is our bankers’ ability to listen and ask the right questions,” Champion adds.
Ultimately, the initial sit-down meeting sets our bankers up to grasp your business growth goals and how to best meet your lending needs. If a sit-down meeting isn’t possible due to COVID-19 restrictions, our team is happy to connect with you via a phone or video call.
2. Gather documentation.
Once you’ve met with our team, the next step to get a Cadence Bank loan is to gather necessary documentation. This typically includes three years of financial information, such as financial statements and the most recent year’s tax return.
“We like to keep this step as simple as possible and try not to overwhelm prospective clients by asking for too much information. We don't want to create extra work for them,” Champion says.
He explains how some documentation is more deal-dependent based on the type of lending solution you’re looking for.
“For example, for a line of credit, we're going to ask about inventory and accounts receivable. For a building loan, we're going to ask about leases,” Champion says. “For the initial review, we can start with three years of financials and some information on the business ownership.”
Note that if you’re interested in a Small Business Administration (SBA) loan, the lifecycle of an SBA loan and required documentation are different.
3. Meet to review the discussion term sheet.
Before getting to a loan decision, we deliver a discussion term sheet. This document provides a high-level overview of the lending solutions we think will work for your business. We like to review the discussion term sheet in person, because it supports our collaborative process.
“The discussion term sheet meeting is invaluable because it’s a great opportunity to get on the same page, bringing us closer to a loan decision,” he explains.
Loan terms, pricing options and fees are also discussed before moving toward approval.
4. Provide a loan decision.
After the discussion term sheet meeting, we finalize our proposal and gather additional documentation, if needed. Then, we provide a loan decision through a commitment letter, which our team likes to review in person. Throughout this process, you’ll have the support of an experienced banking relationship manager.
Learn more about Cadence Bank’s loan services
We take pride in our relationship-focused approach to lending. Some of our commercial loan products and services include:
- Term loans
- Working capital loans
- Real estate loans
- Equipment loans
- Lines of credit
We’re happy to discuss your lending needs and what products and services can help. Contact a Cadence banker today to learn more about how to apply for a business loan.
This article is provided as a free service to you and is for general informational purposes only. Cadence Bank makes no representations or warranties as to the accuracy, completeness or timeliness of the content in the article. The article is not intended to provide legal, accounting or tax advice and should not be relied upon for such purposes.
