Weird prospecting ideas for the challenged-credit, asset based deal

Most brokers understand the benefits of getting a challenged-credit deal done. You’ll be helping a customer when they need it most. You’ll be helping a dealer sell to someone they would normally pass on. Oh, and the paychecks are nice too. But how do you find them? You pull them out of your regular deal flow of course, but often that occurs by happenstance instead of “intentionstance”. Here are a few out-of-the-box ideas to regularly find the asset based, challenged-credit deal.

  1. The garage. Did you know that 2% of all construction equipment in the maintenance bay is being held hostage because the client can’t pay the huge cash outlay to get the dozer dozing again? Other industries would have to have similar problems. A simple refinance option of their existing equipment might fix everyone’s problem. So call on the operations or service managers. You’ll be surprised what you dig up.
  2. The rental fleet. 9% of all business owners that rent are renting when they’d rather buy/lease.  And it because they can’t afford the big cash down or have some credit ugliness going on. But they can generate cash flow for the exorbitant rental rates. A little financial consulting on your part might show them by leveraging equity in their equipment they can upgrade or find the cash down regardless of their credit history. Also, many customers have may have a credit with the rental department a smart broker can leverage as equity in a transaction.
  3. The bean counter. Most equipment finance companies do a poor job selling to accountants—particularly the small business ones. These folks often act as therapists for business owners in tough situations and they would rather not see their customers going to the predatory...I mean…”new” working capital lenders. A regular search and touch of your small business bean counters can lead to real opportunities.
  4. The trash can. Turn down files are a terrific opportunity to re-connect with people. Tell them you might have a new way of looking at things that can easily leverage their asset base. Maybe they didn’t have the equity 2 years ago…but now…they’re good to go. Maybe they thought they could get strong rates years ago even with the BK or tax lien, but are now living in reality. Or maybe the fly-by-night new lender they went with has flown away.

These are just a few thoughts. At Dakota, we like to bring you new ways of looking at things while helping you get your most challenging deals done. Simple, fast and straightforward…every time. Let’s talk.