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Procurement Market Intelligence Report

Commercial Lending Services
Sourcing Guide & Market Trends

Comprehensive intelligence for making smart purchasing decisions

Learn about actual and potential costs

How much should I pay for Commercial Lending Services?

What is the average price of Commercial Lending Services?

This procurement report includes pricing information to help you purchase Commercial Lending Services. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.

Has the price of Commercial Lending Services been rising or falling?

Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.

I’m not ready to purchase Commercial Lending Services yet. Will I pay more if I wait too long?

We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.

What other costs are associated with purchasing Commercial Lending Services?

Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Commercial Lending Services with a reduced risk of unexpected costs.

See how we display average pricing information, trends and market data.

Find the vendor to meet your needs

Where can I purchase ?

Among the estimated 10,250 providers of commercial lending services, the top four players account for just over 30.0% of total market revenue. As a result, market share concentration is moderate. The commercial lending services market is moderately concentrated because the top four lenders operate thousands of establishments across the... Subscribe to learn more.

Questions to ask potential suppliers

How can I gain leverage during negotiations?

Experience and Expertise

How long have you provided these products to your longest-tenured client?

What qualifications does your staff have and what measures do you take to keep those qualifications up to date?

What industry do you most commonly supply this product for?

To what extent will ordering multiple products from your firm allow me to save on costs?

What is your repeat business rate for businesses in my industry and how does that compare to your overall rates?

Supply Chain Risk

Over the past three years, what percentage of your revenue has been dedicated to raw input materials? How has that changed?

Has the availability of raw materials tightened due to the coronavirus outbreak?

Over the past three years, what percentage of your revenue has been dedicated to labor?

How have fluctuations in input prices affected the prices of your products during the past three years?

How do you mitigate sudden price increases in raw materials?

When input prices rise, how much of the cost is absorbed by you and how much is passed onto buyers?

How, if at all, has your supply chain been affected by import tariffs levied in 2018?

Regulation

How do you manage regulatory change? Do you have regulation advisers or methods to track regulation?

How have changing regulations influenced your pricing now and how will the changes affect prices over the life our proposed agreement?

What ongoing training procedures do you provide for your staff?

Have you ever been found to be noncompliant with regulatory frameworks?

Amid widespread health concerns during the COVID-19 pandemic, what contingency plans are in place to mitigate risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions?

Lending Practices

How do you calculate the risk of a business defaulting on a loan?

Do you have a different method of calculating risk for small businesses? What is it?

How long does it take on average for you to fund a loan similar in size to mine?

Is there a prepayment penalty on your loans? If so, how much is it?

How has your product/service helped similar buyers operate efficiently during the pandemic?

Has your lending institution been involved in the disbursement of federal aid passed under the CARES Act? How has your business been able to accommodate clients that are experiencing financial hardship from the coronavirus pandemic?

Client Size

What size business does your bank typically lend to?

How much experience does your bank have with businesses similar in scope to my company?

Does your bank typically lend to international businesses? If so, what percent of your loans are to international businesses?

Does your bank have branches nationwide? Where are the branches located?

Competition

How do you attract new clients and retain existing ones?

What incentives do you give to long-term clients to stay with your company?

How long have you served your most-tenured client, and how did you retain that client for so long?

How does your bank maintain a competitive edge?

Are you experiencing fluctuations in demand as a result of the coronavirus outbreak? What measures are you taking to handle increased/reduced demand?

Customer Satisfaction

Have any clients had major complaints with your service? How have you dealt with these complaints?

How do you improve client satisfaction?

How do you ensure a high quality of customer service?

How do you ensure the quality of the commercial lending services?

What new products/solutions have you introduced to address issues brought on by the coronavirus pandemic?

Regulation

How do you expect future regulations to impact your banking operations?

How has your bank complied with the Dodd-Frank Act and how has that affected your business?

Do you expect any issues with your foreign branches because of increasing regulations? If so, how do you plan to handle these issues?

Do you anticipate issues with your ability to raise capital for lending because of the increasing regulations? If so, how will you handle these issues?

Raising Capital

How do you entice customers to make deposits with your bank?

Do you have counter-incentives to ensure that clients do not preemptively remove their deposits?

What percentage of your capital is borrowed from the Federal Reserve?

How is your bank preparing for the expected increase in the federal funds rate?

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Key elements for every RFP

What should my RFP include?

Project Budget

Buyers should state the size of the loan desired and preferred loan length.

Buyers should request a detailed breakdown of the issuer's fees.

Buyers should indicate any preferences they have regarding payment schedules or methods.

Selection Criteria

Buyers should take into account the size of the bank and what access to capital it has.

Buyers should consider how much knowledge the bank has about the buyer's industry.

Buyers should assess the level of customer service a bank is willing to provide.

Buyers should consider reviews from past clients.

For other selection criteria requirements, buyers should reference the Buying-Decision Scorecard section of this report.

Project Schedule

Buyers should include the date proposals are due.

Buyers should include other relevant dates, such as presentation dates or final interview dates, prior to the contract award.

Buyers should include the date the contract begins and ends.

Buyers should state whether they have any preferences regarding options for contract renewal.

Evaluate major factors to mitigate risk

How risky is the supply chain?

Commercial lending services have a moderate level of supply chain risk. This level of risk hurts buyer power because it indicates that providers face the threat of upstream disruptions that could cause them to rapidly increase service prices. As a result, buyers may find that their ability to negotiate on... Subscribe to learn more.

HIGH

MEDIUM

LOW