Examining the Financial Landscape

In the previous article, we discussed the diversity among lenders in the realm of equipment leasing and financial lending. There’s more to the equation than just understanding the diverse universe of funding sources. To forge robust and lasting partnerships with lenders, it is pivotal for brokers to establish their credibility.

Trust is a fragile asset. It was best described to me that it was like a plate. Once you lose trust, it is as though the plate has been dropped and shattered into many pieces. Even if you are lucky enough to be able to glue all the pieces back together over time, you will still be able to see the cracks. Trust can be broken through your own actions, the actions of your customer, or even rumors spread by others that may be untrue and false. One bad review or verified article can damage potential trust.

Here are a few insights into the journey of a broker if determined to become invaluable to his funding sources.

Understanding the Lender’s Perspective

Before building credibility, a broker must first grasp what lenders are truly seeking. While our previous article emphasized the diverse attributes of lenders, from their specialization in types of credit to preferences in industries, the universal aspect every lender appreciates is reliability.

Milestones in the Credibility Journey

• Consistent Communication: Regular updates and transparency about potential changes in a client’s status or market dynamics demonstrate proactiveness, earning respect and trust from lenders.
• Delivering Quality Over Quantity: Instead of flooding lenders with numerous opportunities, sending well-vetted and quality leads shows that the broker understands the lender’s criteria, thus saving time and resources for both parties. From time to time, the lender’s criteria changes. Making sure to update the criteria in your own database is essential to continual quality submissions.
• Education and Training: Continual education about the financial sector and regular training ensures that the broker is always at the forefront of industry developments. This not only benefits the broker’s business but also adds value to their relationship with lenders.
• Feedback Loop: Creating a system for feedback helps brokers understand lender needs better and adjust accordingly. This two-way communication fosters stronger ties between brokers and lenders.
• Timely Reporting: This milestone cannot be stressed enough. Promptly informing lenders about any changes or potential risks related to a client or transaction is essential for maintaining trust.

Advantages of a Strong Credibility Stance

• Access to Better Terms: Credible brokers can often negotiate better terms for their clients.
• Faster Approvals: Lenders tend to prioritize brokers they trust, leading to quicker turnaround times.
• Wider Network: Building trust with one lender often leads to introductions to other potential partners, expanding a broker’s network.
• Longevity in Partnership: Trust and reliability foster longer, more stable relationships, ensuring consistent business growth and continued success.

Lessons From the Journey

These points underscore the fact that while understanding lenders’ distinct attributes is crucial, establishing and maintaining credibility is the bedrock of long-lasting and prosperous partnerships. The process may seem arduous, but the rewards – in terms of a reliable network of lenders and the mutual benefits that arise – are unparalleled.

About the author: Brian Trebels is the CEO of Equipment Leasing Group of America, LLC, which offers flexible funding solutions for A, B, and C credits in credit-based and collateral-backed transactions. The finance and lease options provided are tailored to the unique credit, collateral, and size of each transaction, thereby fostering long-term relationships with clients to help them achieve their goals. With a proactive and innovative approach to financing, the team seeks to meet clients’ needs effectively.