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Patrick True

Patrick True is Risk Manager, Lending Solutions Division. Patrick is a 25 year veteran of the financial industry. He started his career with Commerce Union Bank in 1986 as a commercial lending officer. As Commerce Union eventually became Bank of America, Pat managed portfolios up to $100 million dollars as well as central underwriting functions for the bank’s Tennessee small business and SBA lending units. He is a graduate of Belmont University with a master’s degree from Middle Tennessee State University. Pat began his current position in 1995 and now serves as a Risk Manager for ProfitStars’ commercial lending solutions. He is the author of numerous banking journal articles as well as a motivational book recalling eight years he worked as a riverboat pilot on the Cumberland River prior to his banking career.

Recent Posts

Not All Lines of Credit Are Created Equal

Posted by Patrick True

Apr 21, 2017 11:00:00 AM

Revolving lines of credit to small businesses help fulfill a critical need for cash flow. They bridge the gap between the time services are completed or goods are shipped and the time payment is made for the resulting invoices. For most small business owners, this time gap can be challenging, especially since it is unpredictable and can leave the business at the mercy of its customers. For small businesses in the U.S., this time gap averages 50 days, although it varies by industry. Filling the gap with predictable cash flow is a critical requirement for businesses that are growing, as well as businesses that have opportunities for quick-pay and volume discounts.

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Topics: Commercial Lending

The 20th Anniversary of “The Five Keys to Accounts Receivable Financing”

Posted by Patrick True

Apr 7, 2017 11:00:00 AM

Twenty years have passed since Paul Sims and I published an article in the Journal of Lending and Credit Risk Management (now the RMA Journal) entitled “The Five Keys to Depending on Accounts Receivable as a Repayment Source.” It is hard to describe the amount of change we have seen in financial services during those 20 years, and the challenges institutions have faced. While almost everything about the commercial lending process has changed since 1997, from technology to borrower/lender communication, the five keys are still just as relevant today as ever.

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Topics: Commercial Lending

The Five Most Meaningful Impacts of Lending Efficiency

Posted by Patrick True

Jan 13, 2017 1:00:00 PM

Since 2010, competition for commercial loans has increased significantly. More lenders have been chasing a limited number of loans during a slow growth environment. Alternative lenders of every shape and size have crowded the space, especially for small-dollar loans. More importantly, technology has shifted, resulting in greater pressure to meet the client online and to speed up loan approvals and turnaround times. Loans that previously would have taken two to three weeks from application through funding now take only a few days, or less. It reminds me of something Bill Gates once said - 

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Topics: Commercial Lending

Commercial Lending in the Coming Year – Trends to Watch

Posted by Patrick True

Dec 2, 2016 2:00:00 PM

The business of banking has changed dramatically since the beginning of our new century.  Competition for both CRE and C&I loans has intensified. Non-bank firms have introduced technology to enhance application timing and workflow. New risk management tools are available to better manage the debtor/creditor relationship. All in all, the landscape we see as we enter 2017 is dramatically different from what many of us ever experienced in the 1980s, 1990s, or even the 2000s. 

While there is no way to predict economic activity during the coming year, we can say that the following seven trends will almost certainly continue:

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Topics: Commercial Lending

Data Integration Key to Successful CECL Compliance Strategy

Posted by Patrick True

Sep 23, 2016 3:00:00 PM

Now that FASB Topic 326 - Financial Instruments – Credit Losses has been released, the real work begins. Financial institutions are beginning to perform due diligence internally and with vendors. Regulators are beginning to review the FASB standard to determine how they will address future reviews. Third-party vendors from core providers to specialty enterprise risk management firms are also fine tuning their services. A review of the new accounting standard will quickly lead us all to one key element necessary for success – data integration.

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Topics: Commercial Lending

How Information Technology Helps Create Credit ACE’s Within Your Institution

Posted by Patrick True

Jul 20, 2016 10:54:08 AM

Years ago, I introduced the Credit ACE acronym to describe a credit officer’s skill in managing a commercial lending portfolio. To be an ACE means to Anticipate potential future events and actions, to Communicate effectively with your clients and to Enforce legal agreements appropriately. Since the acronym was first used, advances in information technology have widely enhanced those capabilities. By working with financial technology vendors, financial institutions across the US are beginning to aggregate their financial data in order to see more clearly into each business relationship. From on-line applications and underwriting through documentation, collateral management and compliance, these institutions are beginning to benefit from seamless delivery of data from one system to the next. This will pay further dividends in the near future as institutions develop their strategies to comply with new regulatory standards associated with FASB guidance regarding current expected credit losses (CECL).

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Topics: Loan Pricing, Lending

16 Ways to Grow Your C&I Portfolio in 2016

Posted by Patrick True

Jan 13, 2016 10:00:00 AM

 

The greater danger for most of us isn’t that our aim is too high and we miss it, but that it is too low and we reach it.”
Michelangelo

“Give me a stock clerk with a goal and I’ll give you a man who will make history. Give me a man with no goals and I’ll give you a stock clerk.”
J.C. Penney

It’s that time of year again, the time to set goals and make resolutions. So ask yourself, are the goals you are setting too high, too low, or just right? The truth is, the business of commercial lending is changing more rapidly than ever. In 2016, financial institutions will be faced with significant challenges and opportunities, from the continued advance of alternative and on-line lenders to the likelihood of a rising rate environment. You need a plan of attack to help separate your organization from the rest of the herd.

With that in mind, here are 16 things you can do during 2016 to assure solid growth along with strong asset quality in your C&I business:

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Topics: Commercial Lending

What Are Your Keys To Successful Business Development in 2014?

Posted by Patrick True

Aug 31, 2015 1:48:53 PM

The world of financial services has changed in countless ways during the past twenty years.  As much as things have changed though, the true benefit of community based financial institutions is still their ability to connect to their local market.  While technology can help, the key to winning new business still lies with your most valuable asset – your employees.  You can have the best client management systems in the world and the best systems for serving those clients; but if your people are not skilled in uncovering new business opportunity, your organization will not sustain growth.

There are two ways to grow a business other than through acquisition; 1) Sell more services to existing clients, and 2) Develop new clients.  While your organization can grow with either of these, the best solution is to do accomplish both.  So how will you do it?

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Topics: Small Business Market, Lending

Growth in Asset Based Lending Calls for a Return to Fundamentals..

Posted by Patrick True

Aug 5, 2015 1:30:25 PM

 Author: Pat True, RTrue@profitstars.com

According to the Commercial Finance Association’s annual survey, asset based lending (excluding factoring) commitments rose to $216 billion by the end of 2014, with funded balances reaching $90 billion.  This represents a 12.3% increase in funded balances from 2013.  Overall credit line utilization rose 41% for the year.  During a year that saw a return to commercial real estate lending for many, working capital lines were also clearly a factor.  This trend was recognized by regulators as the OCC distributed new guidance for management of asset based lines, recognizing that banks are doing more in this arena.  Times like these call for a return to the fundamentals of working capital finance.  Among these are the five keys to depending on accounts receivable as a repayment source:

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Topics: Lending

6 Steps for Loan Officer Success in 2015

Posted by Patrick True

Aug 5, 2015 1:17:55 PM

 

If you ask financial institutions from across the country how loan demand is going, the answers will vary greatly based on the location and the industries that support the region.  Some institutions have seen significant growth in both real estate and commercial lending, while others are still struggling to expand their portfolios.  While average portfolio balances have grown across the country this year, your financial institution reflects the local market rather than the national market.  In order for your institution to be successful, your lenders must retain existing relationships and win new ones, regardless of local conditions.  There is a great quote from the British historian, Edward Gibbon, which expresses this well.

“The wind and the waves are always on the side of the ablest navigator.”

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Topics: Lending

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