Loan Management Made Simple for QuickBooks®
5 tips for becoming a successful lender
Successful lending practice requires a clear strategy and a well-established business process. To get both of them, you need to clearly define your goals and desires of your target audience, as well as to conduct an analysis of your main competitors’ activities. This is something that each lender has to do individually, but there are also some useful tips, which are common to all the lenders.
5 tips for growing a thriving lending business
Here you will learn how the occupation of your own niche, focus on local audiences, transparent business practices and using of loan servicing computer program can help you in becoming a successful lender.
1. Find and occupy your niche
What is the range of your investors’ funding capacities? And what sizes of loans are the most convenient for you now? Small loans, for example from $100 to $50,000, are closed very quickly and provide an opportunity to earn more in fees permanently. At the same time, larger loans bring excellent profit with a higher interest rate.
Most lenders build their business by starting out small, then working up to the larger loans. Due to this, customers who need large loans usually are better served than customers who need quick money. To avoid this problem, it is better to occupy your niche and work only with loans that are convenient for you. Do not rush to move to the large loans, if you continue to work with small. Experience shows that you can get more by doing 100 – $50,000 loans than 100 – $750,000 loans.
2. Stay focused locally
Who does not want to take over the world? But in reality, the lender, which is focused locally, achieves success much faster and easier. Working for years on the same marketplace, it is possible to thoroughly examine all of its features and become a real local expert. Staying local, you will induce more trust among potential clients than the “nationwide” lenders, and in addition, you'll know better in what exactly you invest your money.
3. Take part in trainings and conferences
The best thing you can spend money and time on, it is development of yourself and your business. Read books, attend seminars and make coaching part of your life. This will allow you to become a true expert, stay up to date with new trends in the lending industry and find new investors, partners or employees.
4. Make your business transparent
Start your own website, which will attract the target audience. Fill it only with real photos and contact information to build trust with your customers. Publish news about the concluded transactions and provide links to online loan repayment calculators or other useful tools that can help borrowers to repay their loans. Conduct your lending business openly and it will bring you a steady stream of customers faster than any tricks.
5. Use loan servicing computer program
Using loan servicing computer program, such as Loan Assistant, will allow you to serve customers more quickly and efficiently. In addition, you can be sure that there is no mistake in the calculations, no lost data and you risk nothing. This is the last and the only tip in our list that can give you instant results. Check it for yourself by downloading the free 30-day trial!