A Detailed Examination of a Commercial Lender’s Role
The role of a Commercial Lender in a financial institution is multifaceted and pivotal. This position, which reports directly to the Senior Vice President (SVP) of Commercial Lending, holds the responsibility of managing a commercial loan portfolio. The primary focus of a Commercial Lender is the origination of commercial and industrial and real estate loans. This role is also charged with ensuring that all loans are issued within the bank’s policy and in compliance with applicable laws and regulations. The Commercial Lender’s position takes the lead in maintaining the overall credit quality of the portfolio while achieving margin and fee income goals. [1]
Key Functions of a Commercial Lender
Let’s delve into the essential functions a Commercial Lender performs to enable the smooth running of the bank’s operations. Firstly, they play a significant role in generating loan and deposit relationships for the bank. This involves soliciting new business relationships and strengthening relationships with existing customers.
Another crucial responsibility of a Commercial Lender is to manage the loan portfolio. This task includes ensuring credit quality, credit approval, operations process, and the profitability of the portfolio. In particular, the Commercial Lender pays close attention to credit quality. This task involves overseeing the collection of delinquent commercial loans, making recommendations for charge-offs, and collecting charged-off loans.
A Commercial Lender also ensures that loan files are complete and documented on a timely basis in accordance with bank policies, with the support of the loan support staff. They are also charged with maximizing fee income associated with loans and maintaining an interest rate structure in line with the bank’s philosophy. The Commercial Lender also makes appropriate recommendations for approvals/account maintenance based on a periodic assessment and analysis of financial statements, tax returns, cash flow history, current debt, and other relevant information.
Additional Responsibilities of a Commercial Lender
Commercial Lenders are also required to maintain a strong knowledge of the Bank’s policies and procedures and to identify deviations from policy. They ensure that data entry is accurate and complete, and they also call on key existing and prospective clients while maintaining a high standard of customer service. They are also expected to actively participate in community and civic organizations to represent the bank in the community.
Interpersonal communication skills are vital for this role as Commercial Lenders consistently interact with customers, coworkers, and outside vendors. They are also expected to adhere to all bank policies and procedures and to demonstrate regular and reliable attendance. This role, however, does not entail any supervisory responsibilities.
The Working Environment
Typically, a Commercial Lender operates in a professional office environment. They frequently use standard office equipment such as computers, phones, photocopiers, and filing cabinets. The role is largely sedentary, with the employee spending much of their time in a stationary position, handling files and documents, and operating a computer and keyboard. The employee is also required to communicate with customers and other staff members and exchange accurate information in these situations. Occasionally, there may be a need to move about inside the office. Close visual acuity is a requirement of this role as it involves activities such as viewing a computer terminal and reviewing/inspecting documents.
This is a full-time position, and travel is primarily local during the business day.
Required and Preferred Qualifications
The position of a Commercial Lender typically requires a Bachelor’s degree in business, finance, or a related field, or 5 years of business lending experience, or an acceptable combination of education and experience. However, it is preferred if the candidate has 7 or more years of business lending experience in a community bank and SBA experience. Competencies required for this position include communication proficiency, business acumen, ethical conduct, relationship management, leadership and navigation, and consultation.
Unison Bank, like many other financial institutions, is an equal opportunity employer. This job description is not designed to cover or contain a comprehensive listing of activities, duties, or responsibilities that are required of the employee for this job. Duties, responsibilities, and activities may change at any time with or without notice.
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