“How can I close deals in my pipeline faster?” I’ve heard this question quite a bit lately. Having spent 38 years in banking before joining Vertical IQ, I know there’s a certain time of year when it becomes especially urgent. Leadership starts asking what is likely to close before year-end, and bankers start looking just as closely at every opportunity sitting in their pipeline.
But it’s important to separate reality from a “pipedream.” There are parts of the lending process you simply can’t rush. Credit needs to do its job. Documentation takes time. Borrowers have responsibilities. Internal processes have to be followed.
There are certain things bankers can do to speed up the process and reduce avoidable delays, however. One of the most important is this: Answer the next question before someone has to ask it. And this is where Industry Intelligence becomes a key pipeline accelerator.
Faster deals, from start to finish
When bankers ask how to close pipeline deals faster, it can be tempting to focus on what happens near the end of the process, but I advise looking much earlier in the sales cycle.
The key is to put Industry Intelligence resources like Vertical IQ’s Call Prep Questions, Financial Benchmarks, Industry Risks and Trends, and Localized Industry Data to work throughout the life of an opportunity, from call prep to closing and even beyond.
-
Do your industry homework before the first conversation
Better preparation leads to better discovery, a more complete credit story, and fewer trips back to the borrower later to resolve questions. Before the first conversation, spend a few minutes in Vertical IQ reviewing how the borrower’s industry operates, current industry trends, common risks, financial characteristics, economic factors, and potential financing needs. You don’t need to become an industry expert; just know enough to get answers to meaningful questions faster.
-
Use Call Prep Questions to improve discovery
Don’t treat Vertical IQ’s Call Prep Questions like a script. Choose three to five that are most relevant to the borrower and use them to uncover financing needs, growth plans, cash-flow pressures, capital expenditures, seasonality, or other risks and opportunities. Asking the right questions early can reveal information that might otherwise surface much later in the process.
-
Find potential deal obstacles on Day 3 … not Day 30
When you review industry risks, benchmarks, seasonality, working-capital characteristics, and economic conditions early, and can ask yourself: What is Credit eventually going to want to understand? Whether it’s customer concentration, inventory requirements, labor pressures, or seasonal swings, identifying any issues early gives you time to understand and explain it before it becomes an underwriting surprise.
-
Capture the borrower’s complete picture, not just the numbers
A business’s financial statements rarely tell the whole story. If margins, inventory, receivables, staffing costs, or cash flow look unusual, Industry Intelligence gives you the context to understand why. The goal is to give Credit a clear narrative: what the numbers show, what’s going on in the broader industry, what’s happening with this specific borrower, and why any variance makes sense (or warrants further investigation).
-
Benchmark before you submit the deal
Vertical IQ’s Industry Financial Benchmarks enable you to compare the borrower’s financial performance with industry peers before submitting the opportunity. Again, a variance isn’t automatically a problem, but it is a reason to ask a question. Understanding unusual margins, receivables, inventory, or other metrics while you have the borrower’s attention can prevent another round of “Credit has an additional question…” later.
-
Anticipate documentation needs
Industry Intelligence from Vertical IQ can help you predict what underwriting may want documented, including seasonality, customer or supplier concentration, inventory swings, regulatory issues, working-capital cycles, weather or commodity exposure, and equipment needs. Addressing these areas early lets you begin gathering information before someone downstream requests it, answering the next question before it has to be asked.
-
Bring credit a better-informed deal
Give underwriters the relevant industry context along with the financial package. The goal isn’t more information for information’s sake. Rather, you’re highlighting the risks, benchmarks, trends, and industry characteristics that help explain this particular borrower. A more complete credit story upfront can mean fewer questions and less back-and-forth down the road.
-
Use Local Economies when geography matters
For businesses closely tied to their local markets, industry data may be only part of the story. Use Vertical IQ’s Local Economies data to add more context around factors such as employment, population, construction, and local demand. When geography helps explain a borrower’s performance, include it as part of their credit story.
The key to deal speed? Anticipate the next question
As you can see, Industry Intelligence isn’t just for call prep. As a deal moves from discovery to structuring, underwriting, and closing, the questions change and so can the information you need. Therefore, keep returning to the Vertical IQ Industry Profile as the opportunity progresses through your pipeline. What seemed unimportant during the first meeting may become critical three weeks later.
Moving a deal faster doesn’t mean rushing the credit process, however. Often, speed comes from being more thorough at the right time. Ask the better question earlier. Spot potential obstacles sooner. Understand the variance before Credit asks about it. Gather information while the borrower is engaged. And provide context along with the numbers. In banking, surprises cost time. Preparation helps prevent them.
So, as you look at your pipeline and consider what can realistically close before year-end, don’t just ask: “How can I push this deal faster?” Ask instead: “What question is someone going to ask next … and can I answer it now?”
That’s how you move deals forward and turn a pipeline from a pipedream into reality.
Want to harness the power of Industry Intelligence to close more pipeline deals before the end of the year? Contact us today to learn how, or request a demo!