This underlines the need for proper commercial loan documentation in securing an effective loan and realistic terms of repayment for clients. This documentation comes in many forms; some of which must be supplied by the client ahead of the assessment and approval process, while others must be completed by the financial institution during the application and beyond.
All documentation must be appropriately managed and stored, in compliance with data protection laws and with industry standards and best practices. This article is designed to act as a guide, giving banking professionals information on the types of documentation required, and on the dangers which are to be avoided by collecting such documentation.
Types of Documentation - The client should have amassed the relevant paperwork and documentation ahead of time, before negotiations have begun. The onus is on the client to convince the lending institution that they are eligible for a loan product, but it is in the interest of the institution to provide capital for any individual or business which meets the requirements.
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