BROKER VS. "BROKEN"
So this is why lenders worry whether merchants are responsible borrowers.
A lender/broker relationship weighs heavily when measuring the successful outcome of a client's file. Why is that? The lender just wants to do business, provide financing...and then get paid back.
A lender/broker relationship weighs heavily when measuring the successful outcome of a client's file. Why is that? The lender just wants to do business, provide financing...and then get paid back.
What Makes A Good Broker?
A good broker has resources and successful relationships in a specific niche to help his/her clients, and he will perform a “KYC”(Know Your Customer.)
Networking alone isn’t going to cut it. As a broker,
you need to:
- Take your time to learn the process.
- Determine your clients' needs and wants
- Learn what the lender is looking for. Next time you’re submitting a file, stop to make sure you send a file the lender wants.
1. Learn The Process.
It is imperative
that you learn your industry. If you’re servicing a client who needs an advance, it is important that you review his/her ability to pay AND THEN you must stay connected
with the client…including before funding, during, after and
beyond. Take ownership of your client.
If one advance exists, never put yourself in the position where your client gets a second advance (except in extremely limited circumstances). Upon the first
advance, you need to guide your client through becoming “bankable”, by making sure he manages his cash flow, and the importance for him to do projections.
2. Learn What The Client Needs And Wants.
This is the "KYC" portion of being a broker. Often a client presents themselves when they have less than two days before they have to have the funding they need...so it is important to provide what the client wants, but don’t overlook his needs...which means conducting good financial review prior to the funding.
This is the "KYC" portion of being a broker. Often a client presents themselves when they have less than two days before they have to have the funding they need...so it is important to provide what the client wants, but don’t overlook his needs...which means conducting good financial review prior to the funding.
After you fund a client, take ownership. Invest time
in streamlining your relationships with them. It is good practice to be
comfortable with each client and check on them periodically. Help the
client plan their next steps, and beyond.
3. Know What The Lender Is Looking For.
What is a lender looking for? What is their niche? What types of files do they want? NEVER send a lender files that don’t match their guidelines.
What is a lender looking for? What is their niche? What types of files do they want? NEVER send a lender files that don’t match their guidelines.
It is important that you send the lender completed
files. For example, make sure that you review the clients' bank statements and
application prior to sending to the lender. Each bank statement should be complete, in numerical order,
and right side up. Limit the faxes. Applications should
be signed and dated. AND LASTLY, before you send a file to the lender, you should
have a completed intake form.
It is important you know (a) what the funds
are going be used for, (b) a short history of the business, and (c) a comprehensive history
of the owner(s).
Lenders will appreciate that you took the time to learn more
about your client and will look forward to the next files that you send (as opposed to other brokers, who are not nearly as thorough.)
For more tips, feel free to reach out at info@phoenixfunda.com or call 315-314-2426
Happy Funding!
