The BDO Show

Welcome to The BDO Show! A podcast for passionate BDOs wanting to level up their game with advice and stories from battle-tested BDO’s.

In this episode, we're talking about lies, deceit, and deception, you know -- that thing SOME BDOs use when selling a deal. Misleading borrowers can be largely categorized into two types: intentional and unintentional.

As Sterling Birdsong rightly points out, often, misleading a borrower stems from ignorance rather than deliberate deceit.

 New BDOs may unintentionally mislead because they lack experience with the intricacies of SBA regulations. For example, misunderstanding the necessity for an SBA loan to go through GP if in second position can lead to incorrect assurances to the borrower about streamlined PLP (Preferred Lenders Program) processing.

Ryan Kroge elaborates on another common pitfall: "I've said this once, I think, on the show, and I'll say it again, commission killed the salesperson. The majority of them out there are no longer looking out for the customer."

BDOs driven by commission rather than customer service might prioritize their earnings over the borrower's best interest, leading to ethical dilemmas. Whether through ignorance or intentional omission, misleading borrowers damages trust and can derail the loan process. Setting realistic expectations is paramount not only for gaining a borrower's trust but also for ensuring a smooth loan processing journey.

Chris Hackney emphasizes the vital role of managing expectations: "If you can't manage the expectations of your borrower and the process, then you don't need to be doing this job."

Similarly, Alan Peterson stresses the value of real-talk with borrowers about their obligations and responsibilities, particularly with evaluating business acquisition opportunities: "It's knowing what you can do and knowing what you cannot do that makes you valuable... level expectations with people personally... this is heavy stuff. This is heavy lifting.”

Did we miss anything? If you have questions or comments, please send them to [email protected]  ______________________________________________________

This episode is sponsored by: Rapid Business Plans

Rapid Business Plans is the go-to provider of business plans and feasibility studies for government guaranteed small business lenders. For more information, or to set up a Get Acquainted call go to Art of SBA — Rapid Business Plans ______________________________________________________

CHAPTERS

0:00 | Introduction

3:34 | Ethical Dilemmas in SBA Lending Practices

6:41 | Navigating Early Mistakes and Learning Curves in BDO Roles

11:31 | Navigating SBA Loan Policies and Bank-Specific Rules

17:22 | Managing Expectations in Banking and Mortgage Processing

21:16 | The Consequences of Misleading Borrowers in Lending Practices

26:10 | The Importance of Transparency in Business Acquisitions

32:17 | The Realities and Expectations of Buying and Operating a Business

33:03 | Red Flags When Discussing Loan Terms With Lenders

Shout out to Ted for today's episode discussion: structuring the deal.

Now, we've covered certain aspects of deals but this time, we're going to give our thoughts on Ted's questions.

We'll begin by addressing the importance of upfront deal assessments, emphasizing the pitfalls of relying heavily on add-backs and the necessity of ensuring deal viability through initial reviews. 

Then, we'll transition into a discussion about scrutinizing projections, with a focus on character issues that can arise from unrealistic assumptions. From ensuring borrowers have relevant industry experience to managing dynamic tensions between the BDO and credit teams, the hosts provide astute advice on navigating complex financing landscapes.

Thank you again, Ted. And if you have questions or suggestions for topics, send us an email at [email protected] 

This episode is sponsored by: SBA Protection Quick Close Life Insurance – the fastest, easiest way to secure the insurance protection your borrower needs for their SBA loan.

For more information, visit their website www.sbaprotection.com  or email Adam Bergen at [email protected] 

CHAPTERS

3:30 | The Art of Structuring Deals to Protect Both Bank and Borrower

9:02 | Evaluating Add Backs and Their Impact on Business Deals

16:16 | Evaluating Projections and Assumptions in Business Deals

21:19 | Challenges and Realities of Business Acquisition and Debt Refinancing

28:26 | Navigating Dynamic Tension in Banking for Loan Approvals

Welcome to The BDO Show! A podcast for passionate BDOs wanting to level up their game with advice and stories from battle-tested BDO’s.

In this episode, the hosts breakdown the best practices for scaling your SBA production from $25 million to $50 million annually.

This insightful discussion is aimed at experienced BDOs who seek to elevate their game by doubling their production numbers.

Leveraging key elements like effective time management, strategic delegation, and optimizing your referral network, the conversation highlights the essential factors that contribute to achieving higher production numbers.

Additionally, the episode touches on important themes like adapting to market trends, focusing on vertical industries, and building long-term relationships with key referral partners. Listeners will learn about the importance of starting the year strong, managing their deal pipeline efficiently, and being prepared to handle larger loan sizes.

Key Takeaways:

• Effective Time Management and Delegation: Knowing when and how to delegate tasks within the loan process to maintain efficiency is crucial for scaling production.
• Building and Leveraging Referral Networks: Developing strong, reliable relationships with a handful of key referral partners can provide a consistent flow of quality deals.
• Strategic Loan Size Targeting: Finding a balance in loan sizes and avoiding a focus on large, potentially risky deals can lead to more consistent production.
• Adapting to Market Trends: Staying informed on industry trends helps in targeting the right types of loans and clients, which can significantly impact production numbers.
• Consistency and Preparedness: Maintaining consistency in loan production requires an organized approach and preparation for market fluctuations. 

This episode is sponsored by: Peak Business Valuations

Peak Business Valuation works with over 80 SBA bank lenders across the country, performing around 1,100 SBA-compliant Business Valuations and 100 Equipment Appraisals a year. 

Those whom we work with label us as fast, reliable, and insightful. 

For more information, visit their website www.peakbizval.com or email Ryan Hutchins at [email protected] 

Navigating relationships with your credit team is an essential skill for any BDO.

The nuances of successful BDO-credit interactions are often subtle but impactful. In this engaging episode of the BDO Show podcast, the hosts discuss the critical aspects of building and maintaining strong relationships with credit teams to ensure successful deal closures.

We're focusing on:

• Effective Communication is Paramount: Building trust and rapport with your credit team hinges on continual and honest communication.
• Understanding Credit Preferences: Knowing what types of deals your credit managers and underwriters prefer can significantly bolster your approval rates.
• Humanizing the Process: Personal connections with your credit team can tilt the scales in favor of your loan applications.

 

E-mail us or give any other questions/suggestions at [email protected] ______________________________________________________

This episode is sponsored by: Rapid Business Plans

Rapid Business Plans is the go-to provider of business plans and feasibility studies for government guaranteed small business lenders.

For more information, or to set up a Get Acquainted call go to Art of SBA — Rapid Business Plans | https://rapidbusinessplans.com/art-of-sba

Welcome to The BDO Show! A podcast for passionate BDOs wanting to level up their game with advice and stories from battle-tested BDO’s.

Reaching out directly to business owners offers unparalleled opportunities for BDOs to cultivate genuine relationships and achieve superior results.

In this episode, we dive into effective techniques for direct outreach, common pitfalls to avoid, and strategies for maintaining long-term relationships with business owners.

 Remember:

• Authenticity Matters - Building rapport with business owners through genuine connection rather than aggressive pitching leads to stronger, more fruitful relationships.
• Strategic Follow-up - Implementing systematic follow-up strategies ensures you're not forgotten and keeps your services top of mind.
• Unique Approaches -Leveraging niche platforms and unconventional methods can help you stand out and effectively reach potential clients.

 

Please e-mail us any questions, or suggestions for future episode topics at [email protected] 

This episode is sponsored by: SBA Protection Quick Close Life Insurance – the fastest, easiest way to secure the insurance protection your borrower needs for their SBA loan.

For more information, visit their website www.sbaprotection.com or email Adam Bergen at [email protected]  

CHAPTERS

0:00 | Introduction

3:32 | The Importance of Direct Outreach to Business Owners

8:53 | Strategies for Direct Marketing and Building Client Relationships

11:59 | Networking and Common Mistakes in Business Outreach

15:20 | Effective Strategies for SBA Lenders to Attract Borrowers

18:33 | Effective Strategies for Connecting with Business Buyers

24:58 | Maintaining and Nurturing Relationships with Business Owners

29:38 | The Power of Authentic Relationships in Business

in today's episode, we welcome Sterling back from his Europe trip, roast Ray Drew's Spreadsheet skills, and discuss building robust relationships with other business development officers (BDOs).

"Relationship building with other BDO's is really probably the secret sauce for my success as a BDO."

Creating a network of fellow lenders can often outweigh even direct broker relationships.

There is tremendous value in being at the forefront of other bankers' minds. When another BDO encounters a loan they can't process—whether due to geographical limitations or specific credit appetite—they can refer it to you if you've established a solid relationship.

This networking isn't just about exchanging business cards; it involves engaging in meaningful conversations about each other's processes, credit boxes, and overall banking experiences. 

"Talk to a bunch of different bankers and start to build kind of a banker network."

Continuously nurturing these relationships through lunches, dinners, and genuine interactions helps keep you top of mind, ensuring that you're the BDO they think of when they encounter deals they can't handle.

How do you handle Deal Trading with other lenders? Let us know at [email protected]. 

This episode is sponsored by: Peak Business Valuations

Peak Business Valuation works with over 80 SBA bank lenders across the country, performing around 1,100 SBA-compliant Business Valuations and 100 Equipment Appraisals a year.

Those whom we work with label us as fast, reliable, and insightful.

For more information, visit their website www.peakbizval.com or email Ryan Hutchins at [email protected] 

CHAPTERS

0:00 | Introduction

4:08 | Building Success Through Networking with Other Lenders

12:23 | Compensation and Ethics in SBA Lending

15:27 | Fraud in SBA Lending

19:34 | Legal and Compliance Issues in Deal Trading

25:16 | Building Long-Term Relationships in SBA Lending

32:40 | Building a Lender Network and Knowing Their Specialties

33:46 | Travel, Haircuts, and Spreadsheet Mastery 

The views and opinions expressed in this program are our own and/or those of our guests. They do not necessarily reflect the views or positions of our employers.

Selecting the right conference or trade show is crucial for any BDO. Not every conference will provide the same return on investment, and as the speakers repeatedly highlight, the key is knowing your audience and goals.

Aligning your conference participation with your business goals involves several considerations:

1. Attendee Profile: Identify who will be there. Are they your target audience? Is it saturated with competitors?
2. Peer and Competitor Presence: As Hackney notes, seeing competitors at a conference can be both a positive and negative indicator, depending on the concentration.
3. ROI Tracking: Monitor your success from these conferences. Hackney explains, “track it in our LOS. When you get a deal sourced from it, tag that conference.”

 

We want to know: what are your conference pet peeves?

E-mail us or give any other questions/suggestions at [email protected] 

This episode is sponsored by: Rapid Business Plans

Rapid Business Plans is the go-to provider of business plans and feasibility studies for government guaranteed small business lenders. 

For more information, or to set up a Get Acquainted call, email Bethany McClellan at [email protected] or visit https://rapidbusinessplans.com/ 

0:00 | Introduction

3:09 | Rapid Business Plans: Empowering Borrowers to Bring Visions to Life

4:11 | Strategies for Choosing and Maximizing Trade Show Attendance

10:01 | From Local Trade Shows to National Conferences in SBA Lending

22:06 | Managing Energy and Building Relationships at Trade Shows

24:58 | Balancing Networking and Professionalism

29:11 | Maximizing ROI and Avoiding Pitfalls

33:12 | Conference Tales: Luggage Mishaps

36:50 | Conference Etiquette and Professionalism in Business Settings

41:34 | Conference Networking Strategies and Memorable Experiences

“Not all production is good production.”

This sentiment is echoed by Alan, Chris, and Ryan throughout today's discussion, especially when dealing with clawbacks—where a loan goes bad or is repaid early, requiring the BDO to return their commission.

Understanding the clawback mechanism can save BDOs from significant losses. 

The episode is packed with essential advice for maintaining the integrity of loan portfolios, structuring deals to avoid clawbacks, and nurturing long-term relationships that can withstand economic challenges.

 

Please e-mail us any questions, or suggestions for future episode topics at [email protected]

This episode is sponsored by: SBA Protection Quick Close Life Insurance – the fastest, easiest way to secure the insurance protection your borrower needs for their SBA loan.

For more information, visit their website www.sbaprotection.com or email Adam Bergen at [email protected] 

CHAPTERS

0:00 | Introduction

3:34 | Understanding Clawbacks

9:14 | Clawbacks' Impact on BDOs

15:28 | The Importance of Knowing Your Brokers and Referral Sources

20:26 | The Importance of Relationships in Loan Management

22:59 | The Importance of Character and Reputation in Business

33:03 | Navigating Business Acquisitions and Industry Trends

35:50 | The Importance of Networking and Experience in Business Deals

42:25 | Listener Stories, Clawbacks, and Podcast Engagement Tips

 

The views and opinions expressed in this program are our own and/or those of our guests. They do not necessarily reflect the views or positions of our employers.

Welcome to The BDO Show! A podcast for passionate BDOs wanting to level up their game with advice and stories from battle-tested BDO’s.

Being an SBA Business Development Officer (BDO) not only relies on robust financial acumen but also on the right approach and mindset. For those looking to transition into this specialized field, understanding the nuances and strategic preparation can make all the difference. 

In this episode, we'll talk about:

• Entryways into SBA BDO Roles
• Preparing for and Succeeding in SBA BDO Roles

...and much more like skills transition and interview tips.

If you're someone looking to make the move into the SBA BDO role and have any questions, let us know at [email protected]. 

This episode is sponsored by: Peak Business Valuations

Peak Business Valuation works with over 80 SBA bank lenders across the country, performing around 1,100 SBA-compliant Business Valuations and 100 Equipment Appraisals a year. Those whom we work with label us as fast, reliable, and insightful.

For more information, visit their website www.peakbizval.com or email Ryan Hutchins at [email protected] 

CHAPTERS

0:00 | Introduction

2:03 | Transitioning to a BDO Role in SBA Lending

4:40 | Pathways to Becoming an SBA Business Development Officer

10:57 | Transitioning Into an SBA BDO Role

21:34 | Transitioning to SBA BDO: Tips and Ideal Backgrounds

29:10 | Pathways to Becoming a Successful SBA BDO

36:00 | Managing Salary Expectations in the Loan Industry

36:55 | Top Podcast for BDO Professionals Discusses Listener Engagement

 

 

The views and opinions expressed in this program are our own and/or those of our guests. They do not necessarily reflect the views or positions of our employers.

Welcome to The BDO Show! A podcast for passionate BDOs wanting to level up their game with advice and stories from battle-tested BDO’s. In the fast-paced world of business development, the transition from a high-performing Business Development Officer (BDO) to a manager is both challenging and rewarding. As Chris poignantly states, "If you're the number one producer as the manager, then you failed as a manager." This transition requires a deep understanding of your reasons for making the leap and an honest assessment of your readiness to take on the additional responsibilities. So let's focus on: ➡️Understanding the right management style and fit is vital for both personal and team success. ➡️Transitioning from a top-producing BDO to a manager entails mastering the craft first and checking personal ego. ➡️Avoid title chasing—focus on impact and fit rather than just climbing the hierarchy. Please e-mail us about a time you pushed back on credit or any other questions/suggestions at [email protected] ______________________________________________________ This episode is sponsored by: Rapid Business Plans Rapid Business Plans is the go-to provider of business plans and feasibility studies for government guaranteed small business lenders. For more information, or to set up a Get Acquainted call, email Bethany McClellan at [email protected] or visit https://rapidbusinessplans.com/ ______________________________________________________

CHAPTERS

0:00 | The Importance of Effective Management and Personal Development

4:50 | Management Styles and Business Plan Assistance for Borrowers

5:58 | Finding the Right Manager for Career Success

11:53 | Navigating Toxic Work Environments and Finding New Opportunities

16:19 | Different Management Styles and Their Impact on Sales Careers

22:03 | The Journey from Producer to Manager in the Banking Sector

27:55 | Mastering Your Craft Before Transitioning to Management 31:50 | Career Aspirations and Personal Growth in the SBA Lending Industry

33:22 | Advice for BDOs Transitioning to Management Roles

 

 

The views and opinions expressed in this program are our own and/or those of our guests. They do not necessarily reflect the views or positions of our employers.