Happy New Year

11 Jul 2019 1:17 PM -

The beginning of a new financial year gives us time to reflect on the year that was and have a think about what we would like to see from this year. If asset finance was included on your list, please see below a guide to make the process easier.

We have talked about the importance of good customer service, but we know it’s tough to implement when you have live scenarios, clients sitting in front of you and often strict time constraints. Today we will share common examples and a practical step by step guide as to the options available.

Step 1 - Client Enquiry

The Asset Finance journey begins with an enquiry, generally in one of the following ways:

Face to Face
Phone call
Email

There are several elements that may dictate how you wish to handle this scenario. Factors that can impact this decision are:

Complexity
Your workload
Your relationship with the client
The urgency of the transaction

The more information you obtain at the initial enquiry stage, the higher the conversion rate. It doesn’t matter which way you are in contact with your client just know that they have allowed for the time to run through it with you. Once this initial conversation finishes it can be difficult to get additional information. Use this opportunity to get all you need upfront.

Step 2 - Spot & Refer

At this stage you have the option to refer it to our team, or you can do some fact finding yourself. Before we reach out to the client, we will need the following:

Name
Phone number
Email Address
Commission income you would like to earn ie. is it a $ figure or a %? Any expectations you may have, or if you're happy to leave it up to us

So how do you get the enquiry through to us?
This will depend if you have an existing accreditation with our team; if you don’t please contact us for a copy of our simple onboarding form. We do not have volume hurdles, nor do we charge an ongoing fee. This means it is worthwhile completing the onboarding and becoming accredited with NLG Leasing before you have scenarios coming in.

Buddy System
If you are accredited and haven’t got an assigned team member, please ask the team to give you a point of contact. This doesn’t restrict who you can deal with, it does however give you direct contact details for one of our specialists.
If you don’t yet have a buddy you can send referrals through via one of the following methods:
Email – support@nlgleasing.com.au
Call – 1300 722 011

Best Practice
The more information you can obtain at point of enquiry, the faster we can proceed to quoting and therefore the better the experience for your clients.

Please see below an example of the information that will really help us to speed up this process:

The Asset

Tell me about what you’re looking to buy.
What year/age?/Make/Model/ Km’s?/Income generating?
Are you buying privately or from a dealer?

The Prospect/Customer

Do you work full time or are you self-employed?
If self-employed – How long? ABN registered? GST registered?
Who do you work for?
What is your role there?
How long have you worked there?
Will you be using the car for business or personal use?
What key features are you looking for in the loan? I.e. flexibility, pay it down fast etc.
Are you a property owner? What are your current living arrangements?
Tell me about your financial history.
What other loans have you had?
Are the loans still going?
What does your credit file look like? The lenders will run a credit check anyway, so should we run a check now and see if there is anything we need to address?

The Finance

Do you know how you would like your loan structured, or shall I give you some options?
What is the purchase price?
Loan term
Balloon repayment
Are you planning on a deposit/trade-in? If so, how much
How much would you like to finance

Step 3 - Full application

If your preference is to remain as the client liaison you can then submit all of the information required through to our team. We will then assess and make a recommendation of the most suitable lender based on your client’s personal information. These recommendations will include pricing and the information can be used to complete your NCCP documents.

Gathering the necessary information
This process differs depending if the application is for a consumer or commercial transaction.

Consumer:
All consumer applications for both property and asset and equipment finance follow the same standard process.

Provide your clients the appropriate NCCP documents, as advised by your aggregator
Once you have completed your CNA/Fact Find/Client Application Form, email this to our team or you can enter the details into our quoting and lodgment tool, NLG Connect.
Application will be reviewed and recommendations will be provided
Complete remaining NCCP requirements and submit with all listed supported documents through to
NLG Leasing team will submit to lender

Commercial:
Commercial applications will follow a similar process however, you will be provided with a commercial application form. This document is not a requirement, if your own fact find includes all of the same information, then either email the hard copy to us or lodge the information into NLG Connect. Please note commercial applications are not regulated so the NCCP component is not a requirement of these submissions.
Our expectations once you have sent all the information back to us is that you have reviewed the information and have deemed this a not unsuitable option for your client.

The NLG Leasing team reviews every application to assess lender suitability and then we, as the lender liaison, prepare your documents and submit for settlement.

Step 4 - Quoting

The NLG Leasing team can assist you with a quote once they have received all of the required information. Our system, NLG Connect allows you to provide an indicative quote if you have the following information available:

Finance amount requested
Consumer or Commercial
Loan term
Balloon/residual
If secured, age/make/model
Private or dealer sale
Are your clients property backed
Your income

Please keep in mind this is an indicative quote only and you need to explain this to your clients. Prior to fully reviewing your clients circumstances all quotes should be referred to as a guide. Please find below a few hints and tips around quoting:

Get all the relevant information before providing a quote
Manage expectations
Be clear that rates are indicative only
Know the warning signs when you are up against dealerships
Don’t sell on rate
Opportunity cost – What does this purchase mean for your client? Does it allow them to grow?
If clients are simply rate shopping, work out what your time is worth and stand your ground
Be Transparent

What to do when your offer is being compared against a dealership?
The lowest rate doesn’t mean the lowest repayment. Asking these questions can expose hidden costs in low rate quotes.

Type of loan (consumer or commercial loan)?
Total amount financed?
Loan term in months and is there a balloon payment at the end, if so how much in $, NOT a %?
Lender setup cost and broker/dealer fee?
What is the monthly account keeping fee?
What are the exit costs/fees and or retained interest on the loan?
Is the first payment due immediately or 30 days after the loan settles?
Advance or arrears?
Interest Rate?
Which Lender?
What are the monthly repayments?

Call the NLG Leasing team with any assistance or support you need, it’s what we are here for.

Happy to help.

If you are looking for a solution to assist your consumer and commercial clients with all asset/equipment and cash flow finance solutions - but don’t have yet have the knowledge and can’t justify the high costs associated with multiple accreditations, specialist systems or having full time specialist on the payroll – then NLG Leasing is the right business partner for you. If you would like more assistance, please contact the NLG Leasing team on 1300 722 011 or email support@nlgleasing.com.au

Need a hand? Call us on 1300 722 011