Becoming a Commercial Loan Officer Job Description, Responsibilities, Requirements and Skills
Learn what a commercial loan officer does, including Commercial Loan Officer Job Description duties like financial analysis, structuring loans, building client relationships and determining credit risk. Discover education and certification requirements.
A commercial loan officer is a finance professional who works with businesses to structure, underwrite, and manage loan products that support operations and growth. If you enjoy analyzing financials, negotiating deals, and helping businesses reach their goals, a career as a commercial lender could be very rewarding.
Job Description
A commercial loan officer is responsible for evaluating, authorizing, and recommending approval for commercial loan applications on behalf of lending institutions. Their core duty is determining the creditworthiness of applications made by businesses and individuals looking to finance investments in equipment, real estate, or other projects.
Key Responsibilities
Meeting Applicants and Collecting Information
- Meet with potential borrowers to explain loan options
- Collect financial statements, tax returns, appraisals, and other data
Risk and Credit Analysis
- Analyze financial data, credit scores, and collateral assets
- Determine risk levels and set customized loan terms
Structuring Loans
- Set interest rates, loan amounts, terms, payment plans
- Mitigate risk while accommodating client needs
Authorization and Recommendations
- Approve loans directly within set limits
- Recommend loans above limits to management
Client Relationship Building
- Build rapport with local businesses
- Educate on lending options and attract borrowers
Requirements and Skills
Education
- Bachelor’s degree in finance, economics, business or related field
- Advanced degrees increase competency
Certification
- Certified Commercial Investment Member (CCIM)
- Demonstrates lending expertise
Key Skills
- Strong analytical and critical thinking ability
- In-depth lending process knowledge
- Excellent written and verbal communication
- Meticulous financial data analysis
- Ability to explain complex loans simply
Becoming an effective commercial loan officer requires specialized finance education, certification, stellar analytical skills, risk management expertise, and the ability to build strong client relationships. With the right competencies, loan officers have fulfilling careers supporting business growth through financing counsel.
Commercial Loan Officer Job Description Template
The commercial loan officer is responsible for originating, underwriting, structuring, and managing commercial loan portfolios for business clients. Commercial loan officers work directly with prospective borrowers to determine their financing needs and facilitate loan completion.
Primary Duties and Responsibilities:
- Source new commercial lending opportunities by networking with prospective clients, building referral relationships, cold-calling, and giving presentations.
- Analyze financial statements, tax returns, credit reports, collateral assets, property evaluations, and other qualitative & quantitative data to determine creditworthiness.
- Determine appropriate loan types, amounts, rates, terms, and structures tailored to each client’s financial standing.
- Assess risks tied to industries, economic conditions, business models, and client profiles to mitigate losses.
- Utilize lending software to input application data, generate pricing scenarios, structure loans, and produce closing documents.
- Prepare written recommendations for lending committees when loans exceed officer approval limits.
- Represent the bank professionally in all prospect communications and transactions.
Requirements/Qualifications:
- A bachelor’s degree in business, finance, or economics preferred; a Master’s degree is a plus.
- 3+ years experience as a commercial underwriter or credit analyst.
- Demonstrated expertise in analyzing financial statements and tax returns.
- Excellent written/verbal communication and client management skills.
- Strong business development and relationship-building abilities.
- Proficiency in commercial lending software like Deluxe Credit Analyst (DCA).
Ideal candidates will maintain an existing client base while expanding the portfolio by attracting new quality commercial credits across various industries.
Q: What does a commercial loan officer do?
A: Commercial loan officers specialize in loans and financing options for businesses. Their primary role is to determine the eligibility and risk levels of applicants to authorize loans or recommend approval to senior management.
Q: What are the main duties of a commercial loan officer?
A: Key duties include meeting applicants to explain options, collecting financial documents to make decisions, analyzing risk, structuring appropriate loan terms, approving loans, making recommendations when approval limits are exceeded, and building relationships with potential clients.
Q: What skills and experience do you need to be a commercial loan officer?
A: It’s important to have a bachelor’s degree in finance or economics, additional lending certification, strong analytical and communication skills, in-depth knowledge of lending practices, attention to detail, and the ability to multi-task. Most positions require 3+ years of experience as a loan analyst or underwriter.
Q: How much do commercial loan officers earn?
A: According to the U.S. Bureau of Labor Statistics, the average annual salary for a commercial loan officer is $103,260. With experience and results, salaries can range up to $200,000 annually.
Q: What is the job outlook for those wanting to be commercial loan officers?
A: Jobs for loan officers and other financial specialists are projected to grow 8% from 2020-2030, on pace with average growth across all occupations. Business financing needs are perpetual, so competent loan officers continue to be in demand.
Q: What types of employers hire commercial lending officers?
A: Commercial loan officers work for banks, credit unions, and other types of lending firms and financial institutions. They help these businesses to build lending portfolios by connecting clients to financing for growth.
Q: How can you advance as a commercial loan officer over time?
A: Progressing to chief lending officer or finance executive roles is possible with additional certification, stellar risk management results, portfolio growth through business development, management capabilities, and leadership experience.