What should be avoided when submitting a deal to funding sources?

What should be avoided when submitting a deal to funding sources?

• A. Don't shotgun deals to multi lenders at once
• B. Submit to multiple lenders at once
• C. Only submit to one lender
• D. Delay submission

Answer: (A)

Avoid sending the same deal to many lenders at the same time. This shotgun approach can erode the process: it invites competing offers that may drive terms into confusion or volatility, triggers multiple hard credit pulls, and forces duplicative due diligence. Lenders tend to respond more favorably when they know they’re the primary (or exclusive) proposer, with a clean, complete package that clearly fits their program. By presenting to one lender at a time (or coordinating a defined exclusivity window with the borrower), you preserve each lender’s interest, protect the integrity of the submission, and can negotiate more favorable, consistent terms. Submitting to only one lender at a time is too restrictive, and delaying submissions wastes time that could otherwise move the funding forward.

Avoid sending the same deal to many lenders at the same time. This shotgun approach can erode the process: it invites competing offers that may drive terms into confusion or volatility, triggers multiple hard credit pulls, and forces duplicative due diligence. Lenders tend to respond more favorably when they know they’re the primary (or exclusive) proposer, with a clean, complete package that clearly fits their program. By presenting to one lender at a time (or coordinating a defined exclusivity window with the borrower), you preserve each lender’s interest, protect the integrity of the submission, and can negotiate more favorable, consistent terms. Submitting to only one lender at a time is too restrictive, and delaying submissions wastes time that could otherwise move the funding forward.