The app-only machines are still working pretty well right now, but as most of you know…these times don’t last forever. So as economic winds change direction, the secret to succeeding throughout might just be developing a strong competency with challenged credits.
In any economy, there are a basket of non-bankable folks that just don’t meet the thresholds of application only low rate financing, but in good times too many brokers run from these opportunities. Too much time, paperwork, inconsistent funding sources and uncomfortable client conversations all overwhelm the strong earning potential and more importantly the value you can bring to someone when they need help the most.
These old attitudes are hurting your business, but by finding the right funding partner you can position yourself for more success…and income…in any economic situation.
- Find a partner willing to become an extension of your business. A great funding partner should invest time with your people, understanding how you approach the business. If most of your business is “flow” app-only, they should be willing to step in and work the challenged-credit for you—keeping you informed every step of the way and always protecting your interest in the relationship. Let them do the digging while you stay close to your core deal flow.
- Leave old attitudes at the door. Not all challenged credit lenders are the same. The cumbersome process, obscene paperwork requirements and long maybes you may have experienced in the past simply do not apply to a great funding partner. Don’t let stereotypes hold you back from growing your business
- Diversification. As the acceptability, ease and simplicity of app-only programs ebb and flow with economic tides, a consistent effort to fund the challenged credit can keep the pipeline from drying up.
- Find a partner that actually seeks to improve the client’s situation. Stay aware from the “loan-to-own” lenders and work to find partners that position challenged credit customers for success.
Whether a refinance of equipment to pull out desperately needed working capital or the leveraging cash down/additional equipment for a new purchase, the challenged-credit can help you smooth the bumps of the economic cycles. At Dakota, we help you get your most challenging deals done. Simple, fast and straightforward…every time. Let’s talk.