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Personalize that Credit Decision
I often ask professionals in the commercial equipment leasing and finance industry the following question:
"Would you invest your hard earned dollars into that deal?"
Successful originators know that the commercial equipment leasing and finance industry is a risk/reward proposition. They believe in the concept. They believe in being properly rewarded for the risk taken. They believe in their transactions. They are willing to make the case of why each transaction is a viable investment to be taken by their company or a funding partner. If given the opportunity, they would invest their own money into similar transactions. They 100% believe in their products, their relationships, and their transactions.
In a recent conversation with a group of originators, who were mildly frustrated with a decision made by their credit department, I asked the above question about investing their own money into a similar transaction. Their responses included:
"I am not in the risk and reward business - that is my company's (funding partner's) function - not mine. I just sell their capabilities." This response emphasizes misplaced frustration. Originators need to take personal ownership of the entire process. Top producers are vital factors in the process of protecting the risk taken by their companies and funding partners. This originator must take her fiduciary responsibilities seriously and make every effort to submit only those transactions that she believes are strong investment opportunities for her company and/or funding partners.
"I don't have enough credit expertise to make the tough decisions - I just submit transactions as them come across my desk and hope for the best." This response confirms the source of frustration. Originators need to fully understand the credit process in order to successfully sell their product. This originator operates in a self-inflicted, highly inefficient environment. He must educate himself on credit in order to move his career forward.
"I work closely with my credit team. I value their time and make every effort to pre-qualify my transactions. I encourage them to ask questions, because I often have additional insight that enhances their ability to approve more transactions. I want my personal portfolio to be the best performing asset in the company because it reflects on my professionalism. If I had the opportunity I would invest in any one of my clients."
Is there any doubt who the top producer is within this group of originators?
ORIGINATE THE "BEST" ASSETS
This "Sales Tip" is provided by Wheeler Business Consulting.
Comments, questions and suggestions regarding
weekly tips are welcome.
Phone: 410-877-0428
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