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Commercial lender vs credit officer

The differences between commercial lenders and credit officers can be seen in a few details. Each job has different responsibilities and duties. While it typically takes 4-6 years to become a commercial lender, becoming a credit officer takes usually requires 1-2 years. Additionally, a credit officer has an average salary of $129,478, which is higher than the $74,995 average annual salary of a commercial lender.

The top three skills for a commercial lender include commercial loans, customer relationships and loan applications. The most important skills for a credit officer are risk management, credit risk, and credit analysis.

Commercial lender vs credit officer overview

Commercial LenderCredit Officer
Yearly salary$74,995$129,478
Hourly rate$36.06$62.25
Growth rate4%17%
Number of jobs27,01660,323
Job satisfaction--
Most common degreeBachelor's Degree, 75%Bachelor's Degree, 69%
Average age4539
Years of experience62

What does a commercial lender do?

A commercial lender is in charge of handling and processing business loan applications, ensuring accuracy and smooth workflow. Their responsibilities typically revolve around liaising with company representatives to identify their needs, gathering and verifying applications, providing consultations and recommendations, and negotiating contracts and payment arrangements. They must also keep track of all amendments and processes, maintaining records of all transactions. Furthermore, as a commercial lender, it is essential to build positive relationships with clients, all while adhering to the company's policies and regulations.

What does a credit officer do?

A credit officer is responsible for evaluating financial documents and account statements to determine the eligibility of an applicant for a loan option. Credit officers communicate with the applicant to discuss the loan process, explain the terms of service, and provide them alternative options that would fit their payment ability and loan needs. They create financial reports and recommend the qualified applicant to the manager for approval. A credit officer should have excellent communication and analytical skills, ensuring that the loan policies adhere to the federal and state regulations.

Commercial lender vs credit officer salary

Commercial lenders and credit officers have different pay scales, as shown below.

Commercial LenderCredit Officer
Average salary$74,995$129,478
Salary rangeBetween $54,000 And $102,000Between $85,000 And $196,000
Highest paying CitySan Antonio, TXNew York, NY
Highest paying stateWashingtonNew York
Best paying companyIBC BankFarm Credit System
Best paying industryProfessionalFinance

Differences between commercial lender and credit officer education

There are a few differences between a commercial lender and a credit officer in terms of educational background:

Commercial LenderCredit Officer
Most common degreeBachelor's Degree, 75%Bachelor's Degree, 69%
Most common majorBusinessBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Commercial lender vs credit officer demographics

Here are the differences between commercial lenders' and credit officers' demographics:

Commercial LenderCredit Officer
Average age4539
Gender ratioMale, 72.7% Female, 27.3%Male, 64.4% Female, 35.6%
Race ratioBlack or African American, 10.5% Unknown, 4.7% Hispanic or Latino, 13.9% Asian, 5.9% White, 64.5% American Indian and Alaska Native, 0.5%Black or African American, 8.0% Unknown, 2.7% Hispanic or Latino, 9.7% Asian, 10.7% White, 68.6% American Indian and Alaska Native, 0.3%
LGBT Percentage8%11%

Differences between commercial lender and credit officer duties and responsibilities

Commercial lender example responsibilities.

  • Establish contacts within SBA to gain competitive advantage on knowledge of regulation changes and timely processing of applications.
  • Work with COI's, and partnerships to achieve success in helping small businesses with their financial needs.
  • Develop cross-sell opportunities with no-relationship manage business banking clients.
  • Analyze and support development and execution of underwriting, automation and operational strategies to efficiently and effectively manage the portfolio.
  • Identify and execute cross-selling activities throughout multiple areas of the bank.
  • Remain current in guidelines for conventional, FHA, & VA loans.
  • Show more

Credit officer example responsibilities.

  • Manage credit risk and provide independent oversight of the bank portfolio.
  • Manage the global function for an ERP software company that has a niche market in manufacturing companies.
  • Manage SBA construction/tenant improvement projects submit until project is completed.
  • Partner with small and entrepreneurial business to develop business plans and assist business owners with achieving payroll.
  • Review clients file for compliance with: CIP, OFAC, HMDA, CRA and red flag activities.
  • Audit applications for HUD and IHDA compliance.
  • Show more

Commercial lender vs credit officer skills

Common commercial lender skills
  • Commercial Loans, 15%
  • Customer Relationships, 14%
  • Loan Applications, 8%
  • Loan Portfolio, 7%
  • Credit Analysis, 6%
  • Bank Products, 5%
Common credit officer skills
  • Risk Management, 10%
  • Credit Risk, 7%
  • Credit Analysis, 5%
  • Real Estate, 4%
  • Credit Approval, 4%
  • Portfolio Management, 4%

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