How to Write an Effective RFP for Commercial Loan Services


An effective request for proposal (RFP) for commercial loan services should be specifically tailored toward a company's needs. Commercial loans are varied both in type and individual terms. The types of commercial loan services required by a construction company are different from those needed for a law office. Your RFP should distinguish between what you need, what you would like and what is feasible. Be clear and concise about your needs so you can locate the commercial lender that is appropriate for your needs.

Write a summary detailing your need for commercial loan services and what you expect to get out of the process. For example, “ABC Construction is accepting proposals to fund the construction of a 2,500-square-foot community center in the downtown area. This RFP is intended to vet commercial lenders who can fund not only this project, but future endeavors as well."

Outline your requirements for the RFP. Include the exact type of loan you are seeking. If you are specifically looking for a construction line of credit, specify that is the only type of loan you are considering. If you are open to alternate commercial financing, such as a revolving line of credit or commercial mortgage, include those as well.

Insert a section divulging greater detail regarding the loan specifics. For example, on a construction project, include your budget and a description of the work to be completed. If you are looking for commercial mortgages to purchase investment properties, include the area in which you will be purchasing and the number of properties you want to obtain.

Specify the time frame for your needs. With commercial lending, the amount of time you borrow money will have a marked effect on the terms offered. The rate on a shorter term loan will be higher, as the lender will not make as much money in interest. For the bank to accurately put together an RFP, it needs to know how long the loan will be in for.

Provide background information on your company. Knowing how long you’ve been in business, what kind of services you provide and, most importantly, how successful you’ve been are all important to a commercial lender. More experienced companies are viewed as lower risk. Lower risk equates to more favorable terms in the proposal.

Outline the qualifications you require in your commercial lender. For example, specify whether you want a national bank or a local bank, and whether you are looking for a single loan officer or an entire commercial lending team.

Specify the format you want for the proposal. This includes the length of the RFP, specific font size and style, whether you want a title page, whether you require a cover letter and how detailed a narrative you want.

Conclude the RFP with the deadline for receipt of the completed document.

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