Don’t mess up your deal because you’re too stressed about bank financing

professional profile

October 26, 2024

by a professional from The University of Texas at Austin - Red McCombs School of Business in Austin, TX, USA


This happens to a lot of people.


You’re feeling anxious and looking for a safety blanket. You’re saying you need bank financing lined up before you can get the LOI out to the seller.


But you're dead wrong.


You’re not doing careful planning.


Yes, you’re delaying your deal. Somebody else might grab it while you're procrastinating.


You can talk to a bank to get an idea about the deal structure but you can submit the LOI before you’ve secured financing from the bank.


How have you procrastinated on a deal?

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commentor profile
Reply by a lender
from California State University, Sacramento in Seattle, WA, USA
Email for an exec summary template we’ve got for looking at deals PRE-LOI if you’d like a quick review to level set financing expectations. Geoff is correct, a bank can only do so much work pre-LOI. Post LOI is where the real work happens. redacted
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Reply by a searcher
from Bowling Green State University in Surrey, BC, Canada
Most bankers won't spend much time without a signed LOI anyway. By all means get to know a few bankers - so you know who to call once the LOI is in place - but don't expect commitments.
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