It is important to remind seasoned originators, and especially newer originators who are experiencing their first downturn, that uncertain times require more due diligence, not less. Knowing your customers, your vendors, and your business partners is essential to your survival and your ability to thrive. Tough questions need to be asked at every stage of the process. Make sure that you fully understand every transaction. Make sure that every transaction passes the "gut check" and makes sense.
Smart companies are rightfully taking the following actions to protect their assets and top originators need to embrace these prudent decisions:
- Tightening their credit requirements across the board
- Significantly reducing their application-only programs to lower dollar amounts. Companies want a full package on even smaller transactions to ensure that they are making prudent credit decisions.
- Conducting additional equipment valuations
- Re-vetting vendors with more vigor (especially vendors requesting pre-funding)
Companies are returning to the basics of lending.
"Know your Customers."
Successful originators in the commercial equipment leasing and finance industry are taking the lead and are digging deeper into every opportunity; they fully understand their clients' past, present, and future plans. Top originators are taking this opportunity to build deeper, more meaningful relationships with the strongest partners. End-users and vendors appreciate originators who are more than a salesperson. They are personal advisors; professionals who take the time to understand their business.
The relationships built during these uncertain times will propel top originators through the recovery to better tomorrows.
Survive - Thrive - Lead
This "Sales Tip" is provided by Wheeler Business Consulting.
Comments, questions and suggestions regarding
weekly tips are welcome.