Five types of Loan negotiating skills in banking – which do you have?

We meet lots of bankers at various Banking Schools and through our work on Commercial Loan Pricing models.  Our research tells us that there are different loan negotiating skills in banking and that there are five that are the most common. Looking at the different types of negotiating skills you can figure out the one that you have.

• ONE – The first style is a competing negotiation style. Someone who takes up this type of style is in competition and wants to win. This negotiation style is a way to get what you want without forming a good relationship.
• TWO – The second style of negotiation is compromising. The compromising style is a great way to get fast results when negotiating. You will compromise something you can give up to get them to give you something you want.
• THREE – The third style of negotiation is accommodating. This is a style that can be used to get a loan. When you use the accommodating style you are working with preserving the relationship while negotiating.
• FOUR – The fourth type of negotiating is collaborating. When you collaborate you are going to work together towards a solution. This style will have you thinking in detail about the other side of things as you try to work together.
• FIVE – The fifth negotiating style is avoiding which is great for people who don’t like to negotiate at all. It’s a diplomatic way of negotiating.

When you learn about these different types of negotiating skills it should be easy for you to figure out the one that’s your favorite.

Our specialty is commercial loan pricing.  Contact us if we can be of any help.