1. Know your Market
If the loans are within a 50-mile radius of your office or a branch, it provides better insights into local dynamics. Integration with the market is key. By investing in verticals that you know and within a market you are familiar with, you are likely to increase your chances of success.
2. How much can you really Lend?
Over-lending is bad for your business. But how do you know when you’re over-lending? You need a system to determine right customer, right product, right amount. Loan amounts should be tailored not only to the needs of the borrower but also to their capacity to repay and their character. Developing processes to measure repayment capacity and borrower character is most critical to growing your lending business.
Not every customer is your ideal borrower and some customers are actually not right for you. Knowing how to tell the difference between your customers and those you should send to your competitors is key to building an amazing lending business.
4. Increase Company Visibility.
If customers Google you, what will they find? It’s not only about being found it’s also what is being found about your business. You can control most of it…and you should. Start by investing in a credible, integrated online presence – that will include a Website but it must also include proper integration into your lending back-office and provide customers with anytime access to their relationship with you from any device. We know this can be costly but for a competitive option check out REACH – Web Channel Connector, which is exclusively available with LoanCirrus.
5. Refer & Reward to be Richer.
Really successful lenders smartly integrate both ‘carrots’ and ‘sticks’ in their lending operations. Reward your customers for behaviors that support and advance your objectives – such as, repaying on time and referring other customers like themselves. Any incentives offered are quickly recouped from improved customer and revenue retention.
6. Smart Investments.
You improve your business through constantly investing in staff, business processes and yourself. Also consider the role your business plays in the broader community it serves. In addition to doing good, you may create a virtuous cycle of success.
Lending is a tough business but it can be incredibly rewarding for Lenders, borrowers, communities and entire economies. These six ideas will help to get you started as you passionately build your business.
To Your Success!