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Commercial Lending Business Model

Prepare

Funding

Memo

Send

Funding

Memo

Request

To

Investor

Review

&

Verify

Receipt

of

Funds

Advise

Treasury

Of

Sale

In deals which funds have been drawn by the borrower, the investor must be notified of any share amounts so that it can send funds to the bank.
 
  • A funding memo is prepared, showing funding amounts, dates, rates,..
 
  • The funding memo is sent to the investor for funding the same or next day
 
  • Bank must verify amount received is consistent with the details
 
  • Treasury must be notified of Participation or Assignment closings, since break funding penalties may have to be calculated and assessed. 
 

LIQ50

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