Capital City Bank lends money to business clients for residential and non-residential construction and renovation projects. The properties that the money is disbursed on need to be used for business purposes. The examples of usages of business construction loans are:

• Builders get the loan to build a multi-family unit
• Churches get the loan to build a new church
• A manufacturing company gets the loan to remodel the factory
• Contractors get the loan when needing to utilize a Guidance Line of Credit (GLOC) or for SPEC Home Construction Loans

When you discuss construction loans, do the following:

1. Discuss Features and Benefits

   In order to feel comfortable selling products or services or even referring individuals to CCB, it helps to know what the product or service is (feature) and how it helps individuals (benefits). Below are the features and benefits of our construction loans.

   Features

   • Interest-only payment during construction phase
   • An experienced team mitigates risks associated with construction loans
   • Provides clients the option to transfer a construction loan to a permanent loan without paying the closing costs a second time
   • Provides the option to roll a construction loan and a permanent loan into one easy transaction

   
   

   Benefits

   • No worry about being short of cash during construction phase
   • More negotiating power
   • A professional team ensures your project is completed timely, accurately, and lien-free
   • No worry about the quality of the project
   • Saves money
   • Saves time

   
   

   Note: For a small fee, Capital City Bank Construction loan Admin team monitors the construction project for clients who have cash and do not require a construction loan. This service is beneficial for clients who have little construction knowledge and/or a lack of time to monitor a construction project. When the construction loan is initially generated, the client can choose to roll over the construction loan into a permanent loan once the construction is completed. With this feature selected, the client submits one loan application and pays the closing costs once.

2. Identify Opportunities

   Always be on the lookout for clients who may benefit from a construction loan. Below are examples of prospective clients.

   • A business owner looking to purchase new office space
   • A church looking to expand or renovate
   • A builder looking for a construction line of credit to build single-family homes

3. Discover Client Needs

   Before you recommend a product or service to a client, prospect, or friend, it only makes sense to recommend things they might actually need or like. This is why it's important to ask questions that help us gain insight about an individual's banking preferences.

   
   

   Sales Associates

   To identify the best checking account for each prospect based on his or her needs, ask some discovery questions. Some examples include:

   • Do you anticipate having any borrowing needs in the future?
   • What do you plan on using the borrowed funds for?
   • How much money do you anticipate needing?
   • When you do anticipate needing the funds?
   • Is your business looking to move or expand?
   • Have you considered building or renovating?
   • Do you have a client who has contracted you to build his/her business space?

   
   

   Non-sales Associates (Take it to 10)

   If you do not feel comfortable discussing construction loan information, but are working towards your Take it to 10 goals, do not focus on a specific product. Instead, ask if the prospect is interested in the services provided at CCB. To do this you might say:

   I work at Capital City Bank. We provide construction loans to fund the building or renovation of business properties. Would you be interested in speaking with a banker to see if we might be able to help? 

4. Recommend Products/Services

   When you have identified a need or learned about a prospect's banking preferences, you are ready to make recommendations that align with his or her goals.

   
   

   Sales Associates

   Below are examples of what you might say when recommending a construction loan after having used the qualifying questions.

   Mr. Cook, based on what you have told me, I recommend our construction loan to you. With a construction loan at CCB, you will be able to build the ideal space for your office. Our construction loan allows you to pay only the interest during the construction phase, which frees up your cash for other uses. In addition, we have experienced construction associates who will act to mitigate risk for all parties involved. With this team’s effort, you don’t need to worry about the project and paperwork associated with it.

   
   

   Non-sales Associates (Take It to 10)

   If you are simply trying to make a referral to CCB, then you are recommending the bank, and even a specific banker. Below is an example of how you make this recommendation.

   I recommend Capital City Bank, not only because I work there, but also because it is a great place to bank. We are a strong, stable community bank with a variety of personal and business products and services. I would be happy to connect you with a friendly banker who would be willing to help find the product for you.

5. Handle Objections

   It is highly likely that once you make a product or service recommendation, you will receive objections. Before responding, keep the following points in mind:

   • Make sure you understand the question or objection
   • Be empathetic
   • Address the question or objection even if you can't change the product or service
   • Check with the prospect to make sure he or she accepts your response or explanation

   
   To respond to objections, use Feel, Felt, Found to structure your responses. Below are examples of construction loan objections and suggested ways of responding.

   
   

   Sales Associates

   Client Objection: "The construction project is too complicated for me."

   Feel: I understand that you may be a bit overwhelmed by the construction project. 

   Felt: Many of my clients have felt the same way.  

   Found: It’s true that there is a lot of work needed for a construction project. Most of my clients have found that the construction administration team in CCB can really help them address the issue. The team will observe and assess the project and work to mitigate the risks you, the builder, and the bank face. There is no additional fee with this service. How does this sound? 

   
   

   Non-sales Associates

   Client Objection: "I am not sure if getting a construction loan is the right choice for me."

   Feel: I understand that you are not sure about the decision. 

   Felt: Many of our clients have felt the same way before they applied.

   Found: Most people I talk to have found that the knowledgeable bankers in CCB can really help them address the concerns they have. You can always speak to one of our bankers who can tell you more about our construction loans with no strings attached. Would you like to give it a try?

6. Ask for the Business

   If you did not receive an objection or have already come to an acceptable resolution with the client or prospect, you are ready to ask for the business. Asking for the business is how we move the sale forward. Below are some examples of what you might say to ask for the business.

   
   

   Sales Associates

   • Would you like to apply today?
   • Would you like to speak to a loan originator?
   • May I start your construction loan application today?

   
   

   Non-sales Associates

   In the case of an associate who is making a referral for Take it to 10, you are trying to get the prospect to agree to meet with a banker about a need. Below are some examples of what you might say to do that.

   • I would be happy to connect you with a banker who can help you. What is your name and number? 
   • Can I get your contact information so that I can have my friend, ____________, call you?
   • Can I get your name and number so I can have a banker call you about completing your construction loan application?  

7. Make a Referral

   If you are a sales associate or non-sales associate who cannot process a construction loan application, but have identified someone who is interested in a construction loan, remember to refer him or her to an associate who can help.

   Making referrals at Capital City Bank is as easy as A B C! Below is an example of the ABC method to making referrals. 

   
   

   Acknowledge or Ask questions about a need.

   Would you like to get a construction loan to build your ideal store?

   
   

   Bridge with a transition statement highlighting how Capital City Bank can meet that need.

   I work at Capital City Bank and we have great products to help you with your financial needs.    

   
   

   Connect to a Capital City Banker that can help.

   We have knowledgeable bankers who can help you. Would you like for me to have one of them contact you at a time that works for you?

   Note: For existing clients, always check with SYNAPSYS to see if the client has an assigned relationship manager. If so, send the referral to the relationship manager. For a new business client, check and refer the client to your business/community banker/president.

   Exceptions: For owner-occupied businesses with annual revenue of $3 million or more, refer to Corporate and Professional Banking. For non-owner occupied properties, refer to Commercial Real Estate Banking. For government agencies, associations, non-profit organizations, school boards, tax collectors, property appraisers, law enforcement agencies, utility providers, hospitals, universities, charitable foundations, and community organizations, refer to Institutional Banking.

8. Process the Sale

   Sales are processed in generally one of two ways:

   • The associate who can sell the product follows established policies and procedures to close the sale.  
   • An associate connects the person to a qualified lending associate using a Synapsys referral for the application to be completed by the qualified associate.