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3 Steps to Equipment Financing Success.
Mortgage Brokers interested in adding equipment financing to
their revenues can do so by following 3 easy steps.
Starting a commercial equipment financing business can be a
doubly successful endeavour for mortgage brokers because it
can generate a new income stream as well as open up more doors
for building their existing mortgage business. Also, financing
equipment can be a good stepping stone for a mortgage broker
into the more complicated world of project & commercial property
finance. With good commissions available, this area should be
of interest to the expanding mortgage broker's business.
While the thought of commencing a new business venture can be
a daunting one success will come from having sound procedures
and practices. A small amount of work initially will quickly
help you to determine if there is a business opportunity, and
if there is - how to go about taking advantage of it.
1. Establish your footings.
Initially using a broad brush you need to determine if there
is an immediate opportunity for you in financing equipment.
Call some people in your client or personal network and ask
them if their employer or business uses finance for their
equipment. Get some names and contact the people responsible
for the financing and ask them what they finance, and when
they finance. Also what product they use and why. You might
also ask who they use and how they decide who to use.
By doing this you are educating yourself on some of the terms
and jargon that is used plus your are testing your comfort
level in discussing this sort of financing with exactly the
people you will be talking to when you kick your business off.
2. Place your foundations.
If you get some positive feedback you are well on the way to
making your decision to venture into this new area of financing.
Now you need to line up your finance sources. Most banks and
financiers will have a minimum value business introduction
hurdle for accreditation. You may need a number of sources
so call around and find out the criteria. Also ask about
relationship issues. You may want to manage the client
relationship yourself or alternatively simply refer clients
to the financier who will manage the relationship. Find out
about fees & commissions at the front, during and at the end
of a transaction. Investigate marketing and other support the
financier can provide you in your local area. Also what products
are on offer and how do they differ. Importantly, ask them who
their target clients are and their credit criteria, it will
be best if you are working in the same or similar direction.
3. Build your business framework.
A good database tool is essential. You may be able to use your
existing database to manage your new business transactions and
pipeline or adapt it to the new process and information you will
need to store. Remember, you are now dealing with companies and
businesses in addition to the individuals that operate them. How
much income do you want to generate, how much time are you going
to allocate & when will you allocate the time. What marketing
will you use and when. With the end of the financial year
approaching what angle would work now.
If your thoughts are positive and your comfort levels OK you are
ready to now grow your service offering and to add a new stream of
income to your business.
Article written by By Mark Dyer.
About the Author: Author Bio::
By Mark Dyer
financial planner WA
comprehensive wealth management WA