Successful originators in the commercial equipment finance and leasing industry protect the interest of their money supply. They sell those products which are in the best interest of their employers, funding sources, investors, and/or stockholders. In a period of rising interest rates and potential increases in delinquencies, successful originators are taking the time to fully understand the objectives, challenges, and opportunities of their money supply.

I recently met with an originator who flaunted that he worked for his vendors and end-users. He believed that it was his responsibility to force his employer and funding sources to offer below market rates to marginal end-users for the longest term possible. (He believed locking in low fixed rates for five, six, and seven years for his vendors and end-users was a good personal strategy.) This originator is fighting a losing battle. He is frustrated with the industry. He is trying to endanger the long-term sustainability of his employer and his money supply. 

I asked the originator if he would invest his own money in a transaction to a marginal customer at 2021 rates for a seven-year term. His answer was a resounding, "absolutely not." Why is he asking his money supplier to do what he would never consider with his own funds?

The above originator is a perfect example of an originator who does not know how to sell in a rising interest rate environment. This is an example of an originator who is moving backward rather than forward. This is an originator who is allowing savvy well informed, aggressive competitors to replace him in the market.

Top performing originators:

• Place the interest of their employers, funding sources, and money supply as a top priority.
• Set realistic expectations based upon the current market conditions.
• Are willing and capable of explaining changing market conditions and the importance of having a financial partner with a long-term sustainable strategy.
• Are capturing market share by aggressively selling against competitors who continue to sell in the past rather than building a network of vendors and end-users for the future. 



The opportunity has never been greater for well-informed, aggressive, and professional originators in the commercial equipment finance and leasing industry. 

Survive - Thrive - Lead

This "Sales Tip" is provided by Wheeler Business Consulting. 

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Phone: 410-877-0428 

email: scott@wheelerbusinessconsulting.com