“Your current repayments are $5,000pm, if we can reduce these repayments to $3,500 would that be of interest to you?”
“If I could show you away to purchase a commercial property through an SMSF
and keep repayments around the current rent, would that be of interest?”
Ask for your client’s consent to do some preliminary work to present some solutions that can improve their present position, financial outlook, cash flow and peace of mind.
What sort of product options have you got available to you?
|Tip No. 9: Ask questions that will get your client thinking about what they want now and in the future?
Depending on your client’s preferences and circumstances, there are a number of alternatives to consider.
In commercial property, lenders with longer loan terms can help improve cash flow by reducing monthly loan commitments. For other finance requirements, there are excellent specialist options in the areas of debtor and inventory finance, cash flow (unsecured) finance and equipment finance. A specialist lender is often best placed to produce an efficient, high quality solution by possessing the expertise and taking the time to fit the product outcome to the client.
Who can you turn to?
|Tip No. 10: Identify the products and providers which provide the best solution.
Talk to lenders with Relationship Managers experienced across the range of financing options and able to workshop situations with brokers alongside their clients without the risk of them taking over the relationship. They should also have the necessary skills and experience to work in with other professionals including accountants, tax specialists, financial planners and legal advisers.
Your aggregator is also likely to offer specialist support and expertise for most commercial lending needs and these skills and services can prove very beneficial in developing your own knowledge and ability to deliver.
Present a well laid out proposal.
|Tip No. 11: The key is to find a commercial relationship manager who will invest the time and protect your client relationship.
When you go back to your client, be sure to have put together a solid and appropriate summary of recommendations that is easy to follow and which clearly demonstrates the various benefits available. Describe how they can be achieved, what is involved and your role in overseeing it.
You become your client’s financial Relationship Manager.
|Tip No. 12: Provide a comprehensive solution and say how you can make it happen.
At the end of the process, whether your client proceeds at this time or not, you should have positioned yourself as their Financial Relationship Manager. Maintaining this position does mean being proactive, but such an approach to commercial prospecting will at the very least, help to strengthen and secure your long term client relationships.
|Tip No. 13: Ask your client if you can work with their professional advisers. You never know where that can lead…
With the Christmas/New Year period approaching when many businesses slow down, it can be an ideal time to start planning and getting into a prospecting program. As you try this approach once and then again for a second and third time, it will become an increasingly comfortable exercise and you will fine tune it for your different clients. Before long, it will become second nature.
How good will it feel to have prospected for an opportunity, helped a client out, produced some new business for yourself and then be referred to the client’s professional advisors who in turn have numerous clients with similar needs? In turn, it will help to expand your network and introduce further business opportunities.
Thinktank Property Finance is Australia’s leading specialist commercial lender. Established ten years ago, Thinktank has lent approaching $750m for the purchase, equity release and refinance of commercial properties around the country.
With an emphasis on set and forget loan structures with up front interest only periods but without ongoing fees, annual reviews or regular re-valuations, Thinktank offers Full, Mid and Quick Doc options on typical retail, office and industrial properties located in cities and regions with populations greater than 20,000. We can also provide finance for residential, mixed use and a variety of specialised properties including child care, hostels, reception centres and hotels.
Lending up to $3m per property and 75% LVR for Full Doc and SMSF loans, Thinktank will also lend up to $2m and 70% LVR under alternate verification and to 65% LVR on self-certified income. Whether owner-occupied or for investment purposes, we have a range of options to suit all situations. Up front commissions of up to 1.0% and trail of 0.50% can be selected on all loans.
With practically 100% of our loans introduced via the broker channel, we pride ourselves on giving back to the industry as best we can through ongoing delivery of deal workshopping, training and mentoring while also offering CPD points at accredited educational seminars. We are also now running “How to Prospect Effectively” sessions on a regular basis and for more information on when these are on in your area, please contact Peter Vala, Head of Sales and Distribution on 0468 989 555 or firstname.lastname@example.org.