Start a Lending Consultation With Use of Funds

A borrower may arrive asking how much they can receive, but the lender needs to understand the planned use of funds and the timing behind it.

A useful follow-up repeats the stated purpose without translating it into an approval assumption. The advisor might say, “You are considering equipment for the spring project, and the timing matters because orders begin in March.” Ask the borrower to correct that summary. Then explain which application step will collect the supporting information and who can answer formal questions about the review.

Ask what purchase, project, or operating need the funds would support and when that need becomes pressing. A fictional contractor may be considering equipment before a seasonal project, while another borrower is covering a temporary inventory gap.

Never guarantee approval, terms, amount, or funding date. Explain that qualification requires a completed review. Practice a response to “Can you approve this today?” that explains the process without sounding evasive.

Confirm the documents and contact needed for the next appropriate step.

Practice with a borrower who needs equipment before a project starts. The advisor should repeat the purpose and explain the application milestone, never turn the project date into a funding assurance. Ask whether the supplier requires a quote or deposit before the borrower proceeds, then explain that the formal review determines next steps.