Commercial lending negotiations require a different approach than consumer lending in credit unions. In this episode of Credit Union Conversations, host Mark Ritter talks with Steve Young, veteran relationship management professional at MBFS, about the art of business lending. Steve shares his journey from baseball to becoming a trusted advisor in the credit union space. They explore key differences between consumer and commercial lending, including interest rate negotiations, collateral requirements, and loan covenants. Steve emphasizes being genuine and responsive while building member relationships in credit union business lending, matching deals with appropriate credit unions, and explaining why documentation matters in every transaction.

WHAT YOU WILL LEARN IN THIS EPISODE:

✅ How commercial lending negotiations differ from consumer loans, including the importance of loan structuring, collateral requirements, and loan covenants, rather than focusing solely on interest rates.

✅ Strategies for effective relationship management as a commercial loan officer, including being chameleon-like with different business types and serving as a trusted advisor to credit union members.

✅ Best practices for portfolio management and risk assessment, including why former collectors make excellent lenders and how to properly document terms and conditions throughout the lending process.

✅ Techniques for matching business lending opportunities with the right credit unions based on their culture, risk tolerance, lending areas, and membership requirements.

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TIMESTAMPS:  

00:00 Intro: Meet Steve Young and learn how commercial lending negotiations differ from standardized consumer loan processes in credit unions

01:30 Steve’s career journey from minor league baseball with the Dodgers to becoming a commercial loan officer, and how he learned business lending fundamentals 

05:00 Steve explains his role as a relationship manager at MBFS, serving multiple credit unions while working with brokers on commercial real estate deals

07:23 Discussion of "membership bingo" and matching deals to appropriate credit unions based on their risk tolerance, lending preferences, and portfolio management strategies

09:28 The importance of looking beyond interest rate negotiations to include loan covenants, collateral requirements, personal guarantees, and proper documentation in loan structuring

KEY TAKEAWAYS:  

💲Former collectors make excellent commercial loan officers because they've seen deals go from good to bad and heard all the stories, making them better at risk assessment and understanding the importance of proper loan structuring from the start.

💲Commercial lending negotiations should focus on the total loan package, not just interest rates. Consider loan covenants, collateral requirements, personal guarantees, and release schedules to create a comprehensive deal structure.

💲Being a trusted advisor means matching the right deals with the right credit unions based on their specific lending preferences, asset classes, and membership requirements rather than forcing ill-fitting deals.

ABOUT THE GUESTS:

Steve Young - LinkedIn

RESOURCES MENTIONED: 

Mark Ritter - Website

Mark Ritter - LinkedIn

SEO KEYWORDS: 

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