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New Year New Process

10 Jan 2020 9:27 AM -
9TH JAN 2020
We would like to acknowledge those who are currently affected by the nation's bush fire crisis. Whilst the devastation is catastrophic, we have also seen Australians at their best pulling together to help communities through this testing time.

If you would like to donate to the Victorian bush fire relief efforts, you can do so here. If you would like to donate to the New South Wales bush fire relief efforts, you can do so here. If you would like to donate to the CFA, either to a specific brigade or provide a general donation you can do so here. Secondly, we would like to highlight the long and short term impact to the tourism industry of these communities. The Instagram account @spendwiththem features businesses in these fire affected communities. You can follow them here to buy from them now or in the future. 

NEW YEAR
NEW PROCESS

With some of us still in holiday mode, we thought we would take this opportunity to focus on the basics. This includes the simple, yet common errors that when corrected will result in higher conversions and happier clients down the track. For a moment, think about someone you know within your industry that is succeeding. It could be a friend, mentor, colleague or partner. Think about what they do differently. Do they never see a less than perfect client? Are they afforded higher LVR’s? Do they have approval to declare lower expenses? Are they adhering to different lender guidelines than the rest of us? Or is it that all their NCCP requirements are waived?

Here is a hint…It’s not!

If it’s not any of the reasons listed above, why is it that we see some brokers excel and others stumble? In fact, it is simple. Every transaction can be split into two groups as seen below.
In the circle of concern are all the components that make up a transaction. These are the components of which we have no control over for example, lender policy and your client’s credit score. Our smaller circle of influence, however, includes all the things you can control.



Let's take a look at the application factors that you can control and how this separates the good from the great brokers. By incorporating our 7 tips below, you too can become a great broker.  

The Process
One thing we often hear is that residential brokers don’t take on commercial deals as they are too intricate. Commercial brokers, on the other hand, often don’t touch residential deals due to the extensive NCCP requirements. 
What does this tell us? It’s not the level of complexity that’s holding us back. It’s the familiarity or probably more accurately, the unfamiliarity. When something is unfamiliar, often we will push it away as best and as quickly as we can. This means that with each one we forget the last, without creating and following any process. It is through repetition of our methods, however, that habits will be formed. Consequently, you need to work out your processes when assisting your clients with asset finance. What documents do you need and at what stage? What information will you need in order to quote? Once you have the process mapped out you have won half the battle! If you would like help setting up your process, ask our team for guidance.

Manage Expectations
Whilst this sounds easy and obvious, it is also often tossed out the window when dealing with complicated situations. If you are asked questions that you don’t have the answers to, don’t just make it up. Instead, you are better off saying you will liaise with your asset finance partner and get back to them. A deal can very quickly turn pear shaped when making promises or giving your client information that is inaccurate. You aren’t expected to know everything but if you don’t, it will not end well if you make assumptions.

Don't Sell Rate
Another that seems obvious, however, is arguably the most common mistake we see made.  Brokers often call our team advising us they need a quote in order to ‘beat the dealership’. They tell us the rate but when we enquire about the finance structure (loan term, finance amount, client circumstances etc) often this information is not yet known. When a dealership doesn’t know anything about the client, there is every chance they have been given an off the shelf rate that is subject to change.
Secondly, and similar to home loans, when you see a client who ticks all boxes, they may sit with a tier one lender at a great rate. On the other hand, if a client’s financials are less than perfect, we look at non-conforming lenders with increased rates. Asset finance is no different. The bottom line is that a quote without all the information is not worth much.

NCCP For Consumer Deals
We are often asked how long an application will take. This can be likened to ‘how long is a piece of string?’ It is driven by the application accuracy and the level of completion when sent through to our team. A common mistake is to think that NCCP does not apply to a consumer asset finance deal.
We require any loan regulated under the NCCP act, to have all disclosure documents completed. Our team can provide you with assistance but please speak to your aggregation group for any clarity you may need. If consumer applications are sent through to our team without the disclosure documents, it will delay the process.

Know The Deal - Know The Client
As a broker you need to take advantage of everything you pick up on being face to face with your clients. A lender’s credit analyst doesn’t have the same luxury and therefore, will rely on you to be their guide.
If you don’t know what your client wants, why they want it and understand their personal and/or business circumstances, the likelihood of you adequately relaying this onto a third party is slim. When submitting an application to a third party, consider the submission as confirmation of your support for the deal. The deal needs to make sense to you before you try and convince anyone else. If the application doesn’t, then don’t submit.

Use Lending Basics
Experienced residential mortgage brokers often throw all of their lending knowledge out the window when confronted with an asset finance transaction. The same rules apply. Who are the clients and what are they doing? Can they afford the increased debt and if they face hardship what way out do they have?
It is surprising how often payslips, tax returns or financials are sent through to us without so much as a glance over from the sender. If you are doing a full application, the expectation is that you have verified that it services. If they don’t have the income to service the loan, we can do no more than you. We will happily provide you with support but make sure you do your part too!

Make Support Systems
Continuing to learn and grow means that no one can be expected to know it all. Therefore, build your network to include people and partners that will be able to support your journey. Collaboration is key!

With the launch of our new platform NLG Connect, all our members will be transitioned over the next two months. Look out for your roll out email with your logins and transition date. Training sessions via webinar will be available and as always, we are here to offer support.

NLG Connect will help make your processes more streamlined. Below we have laid out our 10 easy steps from submission to settlement.


Tip Time.

One issue holding up transactions, has increased due to the changes in credit reporting with the different levels of visibility now available. It’s not uncommon for liabilities to exist that clients have no knowledge of. If it is listed, however, we will need to either include the liability or receive formal notification of its removal from the lender to exclude it. 

Understandably this can get the deal off track and cause long delays. We recommend checking your client’s credit file early in the process, ensuring it matches the details they have declared. If there are any discrepancies, working this out early on can save you a lot of time and stress down the track.

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 yet have the knowledge and can’t justify the high costs associated with multiple accreditations, specialist systems or a 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