There is no doubt that these are challenging times for the commercial equipment leasing and finance industry. However,
there is still business being funded and new opportunities being created. Top originators are moving forward and I want to share two success stories:
1. A seasoned originator spent the first few weeks assuring his current clients that he was available, if needed, during the crisis. However, he quickly realized that this strategy was not enough. He needed additional clients and strong clients to propel his business forward. He decided that in tougher times he needed to go upstream, not down. He started calling on larger prospects in his very specific niche. In the past, he knew that the larger companies usually paid cash for their smaller acquisitions and funded their larger acquisitions with institutional players. However in the current economic environment, cash is precious at every level and smaller emergency acquisitions cannot be put on hold. His calling efforts focused on explaining how he could fund these smaller acquisitions (under $250.0K) quickly and efficiently, allowing companies to retain their cash.
Not every prospect call is a success. However, a few are, and he is in the process of funding several transactions for larger companies. These larger and stronger companies are being well received by his credit department and he is anticipating funding multiple schedules over the coming months for several of these new clients. These new clients are impressed with the convenience and ease of his services and pleased with his ability to meet their immediate needs. Their previous financing partners offered lower yields; but were not willing to fund transactions under $1.0M, nor were they capable of reacting quickly enough to emergency needs.
2: An originator discovered that one of her major competitors had exited her primary niche. Over the past two years, this competitor had been buying deep into the niche, offering extremely low yields, and unrealistic structures.
This savvy originator had been tracking the competitor's activity over the past two years. Therefore, upon hearing of the competitor's withdraw from the niche
, she immediately did a query of her CRM, identifying vendors and end-users that had been using this particular competitor. Within a few days, she established an email and calling campaign to inform old clients (that had left her over the past two years) and new prospects of her commitment to the niche.
Many of her calls included explaining her reasonable criteria and pricing; and that her portfolio is performing well, allowing her to continue to prudently service the industry. Within less than two weeks she was already generating new activity. This strong originator is excited about participating in the recovery.
Survive - Thrive - Lead
This "Sales Tip" is provided by Wheeler Business Consulting.
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weekly tips are welcome.