Lenders - What is your conversion rate for term sheets issued to loans actually closed?
For the lenders out there (banks, debt funds, life cos, etc.) what is the ratio of the term sheets you issue to the loans that actually close and fund?  For example, do you send out 20 term sheets to close 1 loan?
[{"id": "i2ruhv8", "text": "From a buyer's perspective, I have conversations with 4-7 different lenders. Gauge the interest for the loan. Some lenders don't like a deal for whatever reason (product type, size, geography etc.). From there I send out the underwriting materials to the groups showing the most interest, usually 3-4 groups. I typically get 2-3 term sheets back. Rates are competitive so its more about shopping terms.", "replies": [], "depth": 1}, {"id": "i2wab3f", "text": "90%+  Our RMs would not send out a term sheet without previously vetting the deal internally with credit and going through our process where they prepare an internal \"Expression of Interest\" memo that is a one pager describing the project, the sponsors, and a quick Debt Service calculation. If it is something like a repositioning or DSC is deficient then there will be a paragraph supporting the deal and why it still makes sense.  \n\nThe actual number is probably 95%+, but I don't have visibility on the whole bank and all of the regions. We only do $5MM+ loans.", "replies": [], "depth": 1}]