25 Commercial Lender Interview Questions and Answers

A commercial lender is a professional who provides financing to businesses in the form of loans. Commercial lenders work with businesses of all sizes, from small businesses to large corporations. They are responsible for assessing the financial needs of businesses and determining whether or not they are a good fit for the lending institution.

Commercial lenders must have a strong understanding of the financial needs of businesses and the ability to assess risk. They must also be able to build relationships with clients and provide them with the best possible loan terms. If you’re interested in becoming a commercial lender, you will need to be prepared to answer a variety of commercial lending interview questions.

In this guide, we will provide you with a list of commercial lending interview questions and answers. We will also give you some tips on how to prepare for your interview and what to do if you’re offered the job.

1. Are you familiar with the types of loans that businesses can apply for?

This question is a great way for the interviewer to assess your knowledge of commercial lending. It’s important that you are familiar with all types of loans and how they can be applied to businesses. In your answer, provide examples of each type of loan and explain what makes them unique.

Example: “There are many different types of loans that businesses can apply for. I have experience working with SBA loans, construction loans, equipment loans and more. Each loan has its own set of requirements and benefits, so it’s important to understand which one will work best for the business. For example, an SBA loan is a government-backed loan that offers low interest rates and flexible terms. However, there are certain qualifications that must be met in order to qualify.”

2. What are the different types of collateral that can be used to secure a loan?

The interviewer may ask this question to assess your knowledge of the different types of collateral that can be used in commercial lending. You can answer this question by naming several common types of collateral and describing what they are.

Example: “There are many different types of collateral that a borrower can use to secure a loan, including real estate, equipment, accounts receivable and inventory. I have experience working with all of these types of collateral, as well as other assets such as stocks and bonds.”

3. How would you rate your negotiation skills as a commercial lender?

This question is an opportunity to show the interviewer that you have strong interpersonal skills and can work with clients to find solutions. Use examples from your experience where you successfully negotiated a deal or helped a client understand their options.

Example: “I believe my negotiation skills are one of my greatest strengths as a commercial lender. In my last role, I worked with a client who was looking for a loan to purchase a new building. The client wanted a low interest rate but also wanted to use his current bank’s construction team. I explained to him that he could get both by applying for a construction loan instead of a traditional loan. He ended up getting the loan and used the construction team.”

4. What is your process for determining whether or not a business qualifies for a loan?

This question is an opportunity to show the interviewer that you have a process for evaluating loans and can make decisions based on your analysis. Your answer should include steps of how you evaluate a loan, including what information you look at and how you use it to determine whether or not a business qualifies for a loan.

Example: “I first assess the financial health of the company by looking at their balance sheet, cash flow statement and other relevant documents. I also speak with the business owner about their current financial situation and ask them questions about their business plan. After reviewing all of this information, I decide if the business has enough capital to cover the loan payments.”

5. Provide an example of a time when you had to deny a business a loan and explain your reasoning.

This question is a great way to show your problem-solving skills and ability to make tough decisions. When answering this question, it can be helpful to explain the reasoning behind your decision and how you helped the business find another lender.

Example: “When I first started working as a commercial lender, I was eager to help everyone who applied for a loan. However, after working in the industry for several years, I learned that not all businesses are ready for loans. One time, I received an application from a small business owner who wanted to expand their store by adding on a new wing. After reviewing their financial statements, I realized they were already operating at a loss. I told them we would not be able to provide them with a loan, but I also referred them to another lender who could offer them a smaller loan.”

6. If you were to make a mistake as a commercial lender, what would it be?

Employers ask this question to make sure you know how to learn from your mistakes. They want to see that you can recognize when you’ve made a mistake and take steps to correct it. In your answer, explain what you would do differently if you were in the same situation again.

Example: “If I were to make a mistake as a commercial lender, I would probably be too eager to lend money to businesses. I have seen many lenders give loans to businesses without thoroughly checking their financial statements or credit history. This is something I try to avoid doing because it’s important to ensure the business has enough capital to pay back the loan. If I were to make this mistake again, I would double-check all of my work before making any decisions.”

7. What would you do if a client asked you about a loan that you knew they wouldn’t qualify for?

This question is a great way to test your problem-solving skills and ability to communicate with clients. When answering this question, it can be helpful to give an example of a time you had to tell a client they wouldn’t qualify for a loan.

Example: “I would first explain why I couldn’t approve the loan. Then, I would offer other options that may work better for them. For instance, if a client wanted a $100,000 loan but only had $50,000 in assets, I would have to decline their application. However, I could recommend a smaller loan or suggest ways they could build up their assets so they could apply again in the future.”

8. How well do you perform under pressure?

Commercial lending is a fast-paced job that requires you to make quick decisions. Employers ask this question to see if you can perform well under pressure and how you react to it. In your answer, share an example of a time when you performed well under pressure. Explain what steps you took to ensure you made the right decision.

Example: “I thrive in high-pressure situations because I know I can rely on my skills and experience to help me make the best decision. When I feel pressured, I take a deep breath and remind myself that I am prepared for whatever situation arises. This helps me stay calm and think through each step of the process. During my last role as a commercial lender, we were working with a client who was looking to secure a loan for their business. They needed $1 million, but they had no collateral. We worked together to find another way to secure the loan.”

9. Do you enjoy working with clients?

This question can help the interviewer determine if you’re a good fit for this role. They may want to know that you enjoy working with clients and helping them find solutions to their financial needs. Use your answer to highlight your customer service skills and how they apply to this position.

Example: “I love working with clients because I get to see firsthand how my work helps people achieve their goals. In my last role, I helped a client secure a loan so they could open up a new restaurant. This experience taught me that there’s more to commercial lending than just numbers. It’s important to understand our clients’ unique situations and provide personalized solutions.”

10. When assessing a client’s creditworthiness, what factors do you consider?

This question can help the interviewer assess your knowledge of creditworthiness and how you apply it to a client’s situation. Use examples from previous experience that show you understand what factors affect a person’s credit score and how you use them to determine if they are a good candidate for a loan.

Example: “I consider several factors when assessing a client’s creditworthiness, including their debt-to-income ratio, payment history and length of time in business. I also look at whether or not they have any late payments on their record and if they have ever declared bankruptcy. If there is anything questionable about their credit history, I will ask questions to get more information so I can make an informed decision.”

11. We want to expand our business into new markets. What industries would you recommend we target?

This question is an opportunity to show your knowledge of the commercial lending industry and how you can help a company grow. When answering this question, consider what industries are growing in your area or region. You may also want to mention any trends that you’ve noticed in the commercial lending industry.

Example: “I would recommend targeting industries with high growth potential. For example, I have seen many businesses expand into the healthcare sector because it’s experiencing rapid growth. Another trend I’ve noticed is companies expanding their services to include small business loans. This is due to the fact that more people are starting their own businesses, which means there is increased demand for these types of loans.”

12. Describe your process for developing relationships with new clients.

This question is an opportunity to show your interpersonal skills and ability to communicate with clients. When answering this question, it can be helpful to describe a specific situation where you developed a relationship with a new client.

Example: “I find that the best way to develop relationships with new clients is by being available for them when they need me. I make sure to respond to emails within 24 hours and return phone calls as quickly as possible. In my last role, I had a client who was looking for financing on a large commercial property. After speaking with him about his needs, I recommended he apply for a loan through our company. He ended up applying for a loan with us, and we were able to provide him with the financing he needed.”

13. What makes you an ideal candidate for this position?

Employers ask this question to learn more about your qualifications and how you can contribute to their company. Before your interview, make a list of all the skills and experiences that make you an ideal candidate for this role. Focus on highlighting your most relevant skills and abilities while also showing enthusiasm for the position.

Example: “I am passionate about helping small businesses succeed. I have worked with many clients who are just starting out and helped them find loans that fit their needs. In my last role, I was able to help a client secure a loan that allowed them to open up a second location. This experience has made me realize how much impact commercial lenders can have on small business owners.”

14. Which industries do you have the most experience working with?

This question is a great way for the interviewer to learn more about your background and experience. It’s important to highlight any unique or impressive experiences you have that relate to the position.

Example: “I’ve worked with many different industries, but I find my most success working with small businesses. My favorite part of this type of lending is helping business owners achieve their goals and grow their companies. In my last role, I helped a local coffee shop owner secure a loan to open up a second location. The new location was an even bigger success than the first, and it led to the company expanding into other states.”

15. What do you think is the most important skill for a commercial lender to possess?

This question is your opportunity to show the interviewer that you possess the skills and abilities necessary for success in this role. When answering, it can be helpful to identify a skill from the job description and explain how you have developed or used that skill in your previous roles.

Example: “I think communication is the most important skill for a commercial lender to possess because it allows me to effectively collaborate with my team members and clients. In my last position, I was responsible for communicating all of our loan terms and conditions to both business owners and their financial advisors. This helped ensure everyone understood what they were getting into when entering into a contract with us.”

16. How often do you make mistakes?

Employers ask this question to see if you are willing to admit when you make a mistake. They want to know that you can learn from your mistakes and grow as an employee. When answering, be honest about any past mistakes but also explain how you learned from them.

Example: “I am human, so I do make mistakes sometimes. However, I try my best to avoid making the same mistake twice. If I ever make a mistake at work, I always apologize for it and then take steps to ensure I don’t repeat it. For example, if I miss a deadline on a loan application, I will double-check all future applications to make sure I meet the deadlines.”

17. There is a client you’ve been working with for years who suddenly stops making payments on their loan. What is your process for handling this situation?

This question is an opportunity to show your problem-solving skills and ability to work with clients. When answering this question, it can be helpful to describe a specific situation where you had to handle a challenging client or situation.

Example: “I have worked with the same client for over five years now. They are always on time with their payments, but recently they missed one. I called them immediately to see if there was anything we could do to help them get caught up. It turns out that they were in the hospital for several days due to an illness. I offered to lower their monthly payment until they got back on their feet.”

18. Describe a time when you had to make a difficult decision as a commercial lender.

This question can help an interviewer learn more about your decision-making skills and how you handle stressful situations. When answering this question, it can be helpful to describe a time when you had to make a tough choice that impacted the business or company you worked for.

Example: “When I was working as a commercial lender at my previous job, we were presented with two clients who both needed loans to expand their businesses. One of the companies was in a much better financial situation than the other, but they also wanted a larger loan amount. In this case, I decided to give the larger loan to the company that needed it most because I felt like it would benefit them more.”

19. What strategies do you use to ensure that loans are repaid in full?

This question can help the interviewer determine how you plan to ensure that your clients’ loans are repaid on time. Use examples from past experiences where you helped a client develop strategies for repaying their loan in full and on time.

Example: “I always recommend my clients create a budget so they know exactly how much money they have available each month to repay their loans. I also encourage them to set up automatic payments, which helps them avoid late fees. In addition, I suggest they find ways to save money by cutting back on unnecessary expenses or finding alternative methods of transportation.”

20. How would you handle a situation where a client wants to renegotiate their loan terms after they have already been approved?

This question can help the interviewer assess your customer service skills and ability to manage challenging situations. In your answer, try to highlight your problem-solving skills and willingness to find a solution that works for both you and the client.

Example: “I would first ask them why they want to renegotiate their loan terms. If it’s because of an unexpected change in their financial situation, I would be willing to work with them on new terms. However, if they are looking to get out of paying their loans, I would explain to them that this is not something we do at my current company. I would also let them know that I am happy to refer them to another lender who may be able to offer them more flexible terms.”

21. Are there any industry regulations or laws that you need to be aware of?

This question is a great way for the interviewer to assess your knowledge of industry regulations and how you would apply them in your work. When answering this question, it can be helpful to mention any specific laws or regulations that are important to the role and highlight how you would use them to benefit the company.

Example: “I am aware of several federal and state laws regarding commercial lending. For example, I know that there are certain types of loans that I cannot make as a commercial lender. In my last position, I was working with a client who wanted to finance a loan for a new restaurant. However, because they were not yet making a profit, I could not help them secure a loan.”

22. Explain the process for approving and disbursing a loan.

This question is a great way to show your knowledge of the lending process and how you can help clients through it. Use examples from previous work experience or explain what you would do if you were in this situation.

Example: “When I approve a loan, I first look at the client’s credit history and financial statements. If they have good credit and enough money for the loan, then I move on to looking at their business plan. Once I’ve approved the loan, I disburse the funds according to the terms of the contract.”

23. Describe your experience with managing a portfolio of clients.

This question can help the interviewer understand your experience with managing a large workload and how you prioritize tasks. Use examples from previous work experiences to highlight your skills in time management, communication and organization.

Example: “In my last role as a commercial lender, I managed a portfolio of clients that included small businesses and corporations. My team and I worked together to create a system for tracking our clients’ progress on loans. We used project management software to assign tasks to each other and keep track of due dates. This helped us stay organized and ensure we met deadlines.”

24. What challenges have you faced while working as a commercial lender?

Employers ask this question to learn more about your experience as a commercial lender. They want to know what challenges you’ve overcome and how you overcame them. When answering this question, think of the most challenging aspect of working as a commercial lender and explain how you solved that challenge.

Example: “The biggest challenge I faced while working as a commercial lender was finding new clients. My company had a quota system where we needed to find new business every month or risk losing our jobs. At first, it was difficult to find enough businesses to meet our quotas. However, I started networking with other professionals in my industry and found several leads for new clients.”

25. How do you stay current on changes in the banking industry?

The interviewer may ask this question to see if you are committed to your career and how much effort you put into staying up-to-date on the latest trends in commercial lending. Your answer should show that you have a passion for learning about new developments in the industry, whether it’s through reading trade publications or attending conferences.

Example: “I am passionate about my career as a commercial lender, so I make sure to stay current on changes in the banking industry by reading trade publications and attending annual conferences. Attending these events allows me to network with other professionals in the field and learn from their experiences. It also gives me an opportunity to try out new strategies and tools that can help me improve my own work.”