Loan Pricing Solutions Increase Income

Loan pricing solutions have historically been used by larger regional banks but now community banks can compete for the best commercial loans as well. Loan pricing tools will help you win more deals at rates that are competitive for both the bank and the borrower. Now is the time to look at what is available in the marketplace.

Commercial loans come in all shapes and sizes and borrowers are more sophisticated now more than ever, especially those who have excellent credit. They can go anywhere and get a loan at the rate they desire. How can you compete for the best credits when regional banks are pricing them at rates that seem below your comfort level?

Generally, costs associated with loan underwriting and servicing are not considered since it is hard to determine what they are. What type of return do you want from the loan or the relationship that the borrower has with your bank? The Strunk loan pricing tool will help you determine the structure (rate/term/fees) of the loan to meet your profitability goals.

Strunk’s loan and relationship pricing solution is designed to model all types of commercial loans factoring in costs associated with the loan, pricing for risk, and providing a return that is satisfactory to the bank. The program accounts for deposits the borrower may have with the bank as well as other loans.

The loan pricing model is easy to use and training your lending staff is paramount to getting buy-in for the solution. The goal is to increase net interest margin while also giving bankers a tool to win more deals.

Contact Strunk at 800-728-3116 or email at info@strunkaccess.com to learn more about loan pricing solutions offered by Strunk. You will be glad you did.