COMMON MISTAKES NEW BUSINESS LOAN BROKERS MAKE
Focusing On Esthetic
While creating a logo, website, and social media is enjoyable, new loan brokers face numerous options and escalating costs. It’s vital to prioritize simplicity, cost-effectiveness, and time management. Polishing and upgrading should occur when the business is financially stable.
Hiring A Web Designer
Web design platforms like Wix.com and Squarespace.com offer user-friendly interfaces for quick, affordable website creation. Hiring a designer incurs additional service fees. While having someone build it may seem tempting, considering better utilization of the funds is crucial.
While buying leads and cold calling were once common, they are outdated for business loan brokers. Many lead sales companies offer overpriced, low-quality data, resulting in fierce competition. Opt for free, organic, multiplatform lead generation for exclusive leads. It’s a superior choice for new businesses.
Paying For Advertising
Positioning ads in front of a large audience may appear time-saving compared to cold calling. However, ads can be expensive. Testing effective ads for audience engagement and conversion takes time. Business loan brokers must evaluate their time and budget. Paid ads are better suited when the business is financially stable.
Buying A CRM
New brokers can utilize a free Google Drive account for file storage and Google Sheets for client management. CRM software companies aim to create dependency, leading to higher costs as the business scales. Polishing and upgrading should occur when the business is financially stable.
No Workflows In Place
Efficient workflow organization is crucial for back-office tasks in your loan broker business. Without it, managing clients, paperwork, and communication becomes chaotic. Poor communication leads to dropped balls and unsuccessful deals, damaging customer experience and your business reputation.
Most new loan brokers prioritize selling Merchant Cash Advances (MCA) due to its market prominence. However, MCAs have a negative reputation among business owners. Affordable alternatives exist with various products. Business owners seek distinct brokers who genuinely aid their businesses. Stand out from the crowd!
Jumping In Too Soon
New loan brokers must prioritize learning the business before building one. Operating without experience leads to frustration, mistrust, and loss of clients. Building a book of business ensures renewals, referrals, and residual income, vital for commission-based sales. Client sense lack of experience. So, become the expert!
American Author - Seth Godin said it best...
“Don’t find customers for your products, find products for your customers.”
TIPS & TRICKS FOR BUSINESS LOAN BROKER SUCCESS
Study Product Qualification
Understanding whether or not a client qualifies for funding is paramount. This goes beyond basic survey questions like asking what the client questions like what their credit score, time in business and monthly revenue is. Evaluating financials, assets, equity and affordability is what tells the real story… not client narrative. It may seem easier to just forward the deal to a lender, but spinning wheels on poorly qualified files means wasted time without monetary result.
Never "Follow Up"
Every word out of a business loan brokers mouth needs to offer value! After first contact with a client, further communication in the form of email, text and phone calls will be needed. Most clients require regular follow up in order to collect docs, get answers to additional questions, present quotes, etc. When reaching out to said clients, it’s important to offer a reason for further discussion. More specifically, always think …what’s in it for the client, why should they want to speak with me.
Use Your Calculator
Asking the right questions up front can qualify a client very quickly, if a business loan broker knows their calculation formulas. Measuring affordability allows a business loan broker to expedite the qualification process by determining whether deal it self even makes sense. There’s lots of clients who want money, believe they’re deserving of certain standard of pricing and in all actuality have completely unrealistic expectations. Business loan brokers need to control the clients mindset, expectations as well as the narrative of the consultation.
Share Qualification Feedback
Business owners rarely understand the challenges they face during the application process, let alone the lenders qualification process. Helping the client to see their file through the lens of an underwriter gives them insight into the position of their business in the alternative funding space. A business loan broker must be an expert in their field and provide valuable insight into the industry for their clients. This is where trust is built, and this is where long term relationships are forged. We must constantly remind the client why we are the person they should rely on for funding.
Not every consultation call a business loan broker conducts will be the same. It’s important to ask questions and consider the answer before asking the next question. It’s our job as business loan brokers to disqualify files as quickly as possible to ensure we don’t waste our time! A proper vetting process gives us a much better chance of funding our clients. Business loan brokers are playing a numbers game, and they’ll be talking to lots of clients. They shouldn’t waste time working with the wrong clients! Monetary result should always be the focus!
When a business loan broker first speaks with a client they will reveal pain points, wants and needs and most importantly what the solution(s) will do for their business. This is ammunition for a business loan broker to use against the client when the client slows a deal by not submitting the required docs or objecting to the terms they qualify for. Remind the client of their problem and what the solution can do for their business. Highlight the challenges they face. Make clear the original objective and that inaction will prevent them from overcoming the obstacle.
Offer Multiple Funding Solutions
Billionaire businessman Richard Branson said, “sell the problem you solve, not the product you offer”. This famous quote speaks volumes. One product doesn’t solve all financial problems business owners face. The more capability you offer, the better chance you have of solving your clients problem, funding your client and ultimately earning a commission. Sometimes you can even package multiple products together and earn multiple commissions!
Keep In Touch
A business loan brokers book of business is extremely important. We need repeat business, renewals and referrals! This is a competitive field. Stay in touch with your client from time to time. Send them useful information and updates in the current marketplace. Again, we must constantly remind the client why we are the person they should rely on for funding. “Network, net worth” …never forget it! Take care of your sphere of influence!
Here’s some common questions & answers about our real estate investment funding lender network.
Are there more Tips & Tricks?
Yes, please download a copy of our business loan broker playbook linked further down this page. Subscribe to our Youtube Channel. Join our FREE Facebook group. There’s a ton of FREE tips & tricks for business loan brokers!
Is ION available to answer questions?
Yes, book a call with us. We’d be happy to answer the questions you have about business loan brokering!
Does ION offer process breakdowns?
Yes, we provide a complete breakdown of how to run consultation calls and conduct qualifying surveys.
Does ION provide scripts?
Yes, we can help you build a foundation for client conversations by providing scripts for you to follow until you feel more comfortable opening our organic conversation on your own.
I'm interested, what's next?
Please watch our FREE webinar. All will be made clear! Thank you for your interest in our program!
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Business Loan Broker Playbook!
MORE LOAN BROKER UNIVERSITY DETAILS
ION SUCCESS TOOL
Our interactive guide provides a comprehensive walkthrough of everything related to being a business loan broker. Additionally, it offers students the opportunity to join ION and collaborate with industry professionals.
SUPPORT & MENTORSHIP
At ION, we offer 1-on-1 assistance without 800 numbers or international outsourcing. Our live support includes screen sharing capabilities. Additionally, students that plugin are paired with industry professionals for optimal learning.
Our students are matched with a mentor who is an industry professional. Crucially, this mentor works alongside them in the marketplace, providing opportunity for students to earn money while learning.
FREE LEAD GENERATION
In this space, buying leads & paying for advertising is a thing of the past. Social media is powerful if you know how to leverage todays platforms. No need to build an audience or post, you just have to know how to navigate and connect.
NATIONAL LENDER NETWORK
ION is partnered with an extensive lender network of 140+ lenders offering more than 60 unique funding products. This includes both business funding & real estate investment funding. Additionally, we share our network with our students.
To effectively manage workflows, it all starts with organization. Using forms, invoices, grids, calculators, templates, and scripts streamlines workflow. Furthermore, we update these materials to stay current with the marketplace.