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 of "The BDO Show," the hosts, Emily Detor, Alan Peterson, Sterling Birdsong, and Ryan Kroge, are joined by special guest Bruce Marks, a distinguished figure in the SBA lending sphere. The discussion centers around the challenges and rewards of managing stress as a BDO, the importance of client relationships, and navigating the complexities of large-scale transactions.

Bruce shares his wealth of knowledge from years of experience, offering listeners a glimpse into what it takes to succeed in this competitive field. The conversation dives into effective stress management strategies for BDOs. Bruce Marks emphasizes the significance of pipeline management and the balance between personal goals and organizational expectations. He underscores the importance of establishing a robust network and the pivotal role of credibility in winning deals.

The episode also highlights how Bruce collaborates closely with underwriters and leverages technology to streamline his workflow, ensuring that client expectations are met without igniting potential conflicts.

Key Takeaways:

• Stress Management: Bruce Marks stresses the importance of managing personal goals and refining pipeline efforts to alleviate stress associated with production targets.
• Building Relationships: Relationships are paramount in SBA lending; success often hinges on who knows you and how well you can present credible solutions.
• Client Communication: Involving underwriters early in the process can help set realistic expectations and prevent misunderstandings.
• Technology Utilization: Using tools like Calendly and conducting video calls can enhance productivity and communication efficiency.
• Career Longevity: Embracing learning opportunities and focusing on quality deals are key to a long, successful career in SBA lending.

If you have any questions or comments, please send them to [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]

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 engaging episode of The BDO Show, the team welcomes Mary Soldano, a renowned SBA BDO. They delve deep into the intricacies of balancing SBA lending while maintaining a healthy work-life balance.

The podcast kicks off with a discussion on the expectations and strategies for managing the numbers game in the field of SBA lending. Mary shares her insights on calculating necessary outputs and backward planning to achieve annual goals. These insights can help new and seasoned BDOs alike understand better methodologies for meeting and exceeding performance targets.

The conversation further explores the dynamics of work-life harmony, tackling topics such as time management, family responsibilities, and the perception of women versus men in balancing professional and personal life commitments. Mary's experience as a mother of three and a successful BDO showcases how one can achieve excellence in a demanding career while prioritizing family. This episode is packed with practical advice for BDOs looking to enhance their productivity and find equilibrium in their professional and personal lives.

Key Takeaways:

• Strategic Planning: Mary Soldano emphasizes the importance of reverse engineering your goals by calculating how many deals need to be submitted and approved to hit a target, using metrics like term sheets and closings.
• Work-Life Balance: Insights on maintaining a healthy work-life balance focus on being fully present in each moment, whether with family or at work.
• New BDO Challenges: New BDOs should expect a ramp-up period typically around six months to gain traction and experience as they establish themselves in the industry.
• Effective Networking: Surrounding oneself with experienced and successful professionals can significantly enhance learning and success rates in the onerous prospecting phase.
• Honesty in Business: Being truthful with clients and referral partners about deal specifics builds better trust and long-term partnerships.

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 | 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.

In this insightful episode of the BDO Show, the co-hosts engage in a thought-provoking conversation with special guest Glenn Giro. The focus is on navigating career transitions within the SBA lending industry and understanding when and why to switch institutions.

The discussion delves deeply into the factors that contribute to making a successful career transition and the importance of choosing the right environment for personal and professional growth.

Emily, Alan, Ryan, and Glenn touch upon essential themes such as the significance of aligning with a bank that fosters a growth-oriented culture and how autonomy and reputation play crucial roles in a BDO's career choices.

They emphasize critical checklist items to consider when evaluating career opportunities and shed light on managing transitions seamlessly, ensuring that the integrity of professional relationships is maintained.

The episode offers invaluable insights for BDOs pondering a career move, balancing the need for growth with the desire for stability.

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 https://sbaprotection.com/ or email Adam Bergen at [email protected]

CHAPTERS

0:00 | Introduction

3:19 | Deciding When to Switch Banks as a BDO

10:18 | Top Priorities for Success in SBA Lending

18:36 | Keys to Successful SBA Lending and Bank Alignment

21:53 | Career Transitions and the Challenges of Pipeline Management

27:26 | The Importance of Building Long-Term Business Relationships

30:10 | Ethical and Reputational Risks of Deal Leaking in Finance

In the high-stakes world of SBA lending, closing a deal successfully is often a race against time and unforeseen challenges.

Join Emily Detor, Ryan Kroge, and Sterling Birdsong as they delve into the intricacies of navigating credit, legal, and internal team dynamics to coax deals over the finish line. Your hosts offer a candid look into the hurdles and strategic maneuvers that seasoned BDOs employ.

Learn about the importance of setting expectations, managing third-party reports, and communicating effectively to avoid deal-killing delays. Real-life anecdotes, including disasters averted and lessons learned, highlight the unpredictable nature of the business lending world. Perfect for BDOs aiming to streamline their processes and maximize success.

• Effective communication and expectation management with clients and internal teams are crucial in ensuring smooth deal closures.

• Understanding the potential pitfalls in SBA lending, such as third-party reports and credit assessments, can preemptively avert transaction issues.

• Collaborating with the right partners, from environmental consultants to legal advisors, fosters a seamless lending process.

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

3:31 | Avoiding Deal Failures in Loan Closing Processes

13:45 | Uncovering Fraud in a Business Acquisition Deal

15:51 | Early Warning Signs of a Deal Falling Through

20:22 | The Importance of Solution-Oriented Teams in Deal Success

23:23 | Challenging Inaccurate Real Estate Appraisals for Fair Valuation

25:48 | Navigating Underwriter Challenges to Ensure Deal Success

29:46 | Navigating Environmental Challenges in Real Estate Transactions

35:53 | Communication and Expectations in Loan Closing Processes

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.