Helpful tips for writing asset finance deals in 2021
As we look towards 2021, we want to help you get off to a flying start with our top tips for writing asset finance deals.
Is timing really everything?
It’s always a good time to get moving on asset finance deals! The end of the financial year is particularly a good time, as the asset write-off tax incentive and the end-of-year sales lead to an increase in the number of customers. But we advise you to start now and get those deals rolling.
When and how do you start a conversation about asset finance needs with your customers?
Firstly identify the need. Try to understand the business as best as you can. Perhaps go to the premises, see them in person, understand what their structure is, what their goals and objectives are – because, often, business owners are moving in 10 different directions and there’s no clear goal! You want to find out what the clear goal is and how they can get there. Finance is often a requirement to getting to that goal.
What do you look for in an asset finance lender?
Every lender has their own credit policies, which are important to know. For complex deals, you want to see real “credit sense” from the lender. Brokers tend to obtain customers that aren’t very straightforward. They often don’t simply ‘fit with’ a prime lender. So, you want lenders that are versatile and think logically. You want someone who can ‘see’ a credit deal and they can work with you.
How should you stay across changes in asset finance?
A great way to do this is by taking advantage of our learning and development programs. They’re helping in providing insights about what’s changing in the industry and what updates may be happening in compliance. It’s important to identify new solutions, such as new products for your clients or updates on lenders.
... And finally
Understand the customer! By doing so, you will be able to better understand how you’re going to prepare the credit application to the lender – giving you a better chance for approval. This means fewer credit applications (which is desirable) and a faster result.
Well done on making it through an ‘interesting’ 2020. Have a great break and we look forward to working with you to achieve great heights in 2021.