Application-only products continue to expand in the commercial equipment finance and leasing industry. As scoring systems have become more sophisticated and proven over time,
companies have increased the dollar amounts that they are willing to fund under an application-only model. The industry has seen the limits increase from the $75.0K to $150.0K range to ranges that are approaching $350.0K and above.
These larger limit programs are often more defined to include specific industries and equipment, and have higher credit requirements measured through a proprietary scoring model. These models are highly beneficial for the industry and should be embraced. Application-only programs are tools that should be used effectively.
Application-only programs create an opportunity for originators who are willing to go the extra mile. Top originators do not limit themselves to application-only opportunities. They are not afraid to request financial statements on applicants that need additional explanation to secure an approval, even if the request is within the application-only dollar amount. Top originators are not afraid of pursuing transactions above the application-only limits and are requesting a full credit package to secure a larger approval. Top originators distinguish themselves in the market as well-rounded financial partners. Top originators are capable of securing approvals and fundings through application-only and/or full disclosure models in order to best serve their vendors and end-users.
Too often, average originators stop the process when transactions fall outside of an application-only model, even when they believe there is additional strength in a specific transaction. Additional work and exploration are not necessary for weak transactions, but can be beneficial for transactions that have hidden strengths that only a full credit package can reveal. Top originators have keen credit expertise to determine when a transaction warrants additional effort and they are willing to go the extra mile to capture opportunities that others may bypass. Top originators maximize their production by using all the tools at their disposal.
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This "Sales Tip" is provided by Wheeler Business Consulting.
