White Paper_SBA Personal Guarantees and Bankruptcy
Tbg Sba Lender
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2. It was a pleasure to see you in Phoenix. We look forward to working with your team when called upon.
3. Who is The Bailey Group? Our commitment of 7-10 business days for delivery of a life insurance policy with a recorded collateral assignment One resource for all of your loan needs nationwide Competitive pricing for term life Insurance Ease of doing business for you and your borrowers What is FastTrak?
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5. How To Answer Borrower Objections to Utilizing TBG: If Borrower Requests To Use Personal Policy For Collateral 1 A . Ask borrower what is the current purpose of the existing policy? Who is Beneficiary? Family? Other business partners? B . Let the borrower know, for this loan purpose, keep your personal policy separate and recommend TBG If Borrower Wishes to Work With Local Insurance Agent 2 A . Local agent not familiar with required documentation needed for SBA supported loans B . Agent not familiar with our lender C . Turn around time will be much greater for the policy and assignment D . Give borrower examples of past complications and issues that have arisen with local agent E . Remind borrower that TBG is a specialist in the SBA lending market 3 If Borrower Has Concerns About Cost A . AXA is very competitive for term insurance B . TBG has ability to shop 35 other brand names in Brokerage Division – we can shop alternative carriers for the best pricing Don’t Delay Closing by Leaving the Process up to the Borrower… Recommend TBG!
6. It’s simple. Borrowers have to get life insurance and time is always a concern as they are completing their closing checklist. My standard language in referring you to a borrower is: “… in my experience, 100% of the time that my clients engage The Bailey Group and their FastTrak program the life insurance requirement is met quickly with very little pain on your (borrower’s) end. On the other hand, 100% of the time my borrower’s engage ‘their guy’ for life insurance needs we are waiting for life insurance documents from an agent that is unfamiliar with the SBA process & required paperwork and the closing is delayed. It is your choice who you engage, but know that the bank will not make an exception and close your loan before the life insurance policy is in hand with all the necessary accompanying documentation.” To the “should I use my current life insurance policy as opposed to applying for a new policy” question: “…if I was the borrower, I would not jeopardize my existing financial plan. I would apply for a new policy specifically for this loan request.” Ryan F. – Wells Fargo ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Once the commitment letter is issued, there will be a condition requiring you to have a life insurance policy equal to the unsecured portion of the loan, with at least a 10 year term. I'll ask that you please contact The Bailey Group for assistance with this policy. Unfortunately, insurance assignments for this type of loan are very complex for a standard insurance agent and take an unacceptable amount of time. The Bailey Group is a trusted and respected organization specializing in policies for SBA loans. Many of my borrowers have used The Bailey Group and speak very highly of them and their business ethics. Jeff M. – Wachovia SBC ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ I explain that The Bailey Group is a specialist that processes a policy and assignment in 10 days (or less). I warn them that if they use another insurance company the process can take 30 days and often causes the loan closing to be delayed. I further explained that most insurance agents are not very familiar with the assignment form nor the process and that there can be a conflict between the bank accepting an insurance provider's assignment form and likewise an insurance provider unwillingness to accept the bank's form. The bottom line -- it typically becomes a real hassle for the borrower and creates additional unneeded stress and potential delays. Lastly, I explain that the feedback I have received from my borrowers is that your rates are extremely competitive and in some case saved them money. I have never received anything but positive feedback as to your outstanding service. Truthfully, I practically make it a requirement that they use you, or I can make no guarantee of closing on time. I have found that unless my borrower has a very strong relationship with an existing insurance agent, they always select you (this includes cases where they have gotten competitive bids). Tom S. - US Bank What has been said about us…
8. Thank you! We look forward to growing our partnership!
Editor's Notes
This is our Value Proposition to you. It’s a summary of our overall process, and the components that go into our commitment to you in delivering what you and your borrower need for your loan.
