Building long term relationships with your clients is the key to your success. A trusted advisor is more likely to be approached by their clientele again and again, making your investment in client relationships so important.
A client is more likely to come to you for advice if you tell them the truth, even if that truth may be uncomfortable or inconvenient. Like any relationship, trust is built on honesty and openness and the ability to engage in both easy and more difficult discussions.
Trust is built early by ensuring that your client’s best interest is front and centre from the beginning of your relationship. Providing your client with the best options for their current financial situation at the start will ensure they won’t find better service or options elsewhere.
Repeat business is an indication that you are doing something right.
A client who trusts you may therefore not only come to you for financial products advice, but they may also come to you when they are struggling to make repayments on their debts.
They may also have a vulnerable moment where you are looking for a loan for them, and at the eleventh hour a credit file check reveals there is a problem that may lead to the client not being able to get the loan.
In this moment, your client knows whether you are supportive or frustrated at this situation that has arisen. We all know how hard brokers work to get a loan approved for their client, and while it is frustrating that your client didn’t tell you they had a credit file problem, or didn’t know about it, in this moment is when you win or lose them based on your reaction.
When a credit file issue arises, you can provide the following advice:
- Find out how quickly they need finance approved
- If they have the time, provide information about how they might fix the problem by engaging a company who may be able to remove the black mark, leading to a lower interest loan approval
- If they have time, provide some steps they might take themselves with the creditor or the credit reporting agencies to ask for a removal of the negative listing/s
- If the best option, provide information about other loan products that may be more suitable now you know about their credit file issue
Clients love lots of options, and clients don’t want to pay more for finance than they must.
Recommending sound financial options to your client when they have a credit file issue, can open discussions and solutions that can lead to good long-term relationships.
If your client is currently unable to get the loan they want because of a credit file issue, we would like to help.
Our team of kind and non-judgmental specialists will step your client through some options to assist them to get the finances they are seeking.
What can you do to help?
If a client has reached out to you and expressed mortgage stress, or you know a fixed interest period is ending, you can make some suggestions to your client, to:
- Create a budget factoring in the current higher interest rate repayments.
- Pause charitable donations until they can afford them again
- Look for free entertainment whether it be a concert in a park, free entry into an art show, or activities provided by a church
- Use cheaper public transport when available, rather than using your own car
- Manage streaming subscriptions (only pay for what you use regularly)
- Refinance them into a better rate
- Suggest they contact their creditors and ask for a short-term payment holiday
All these suggestions may help.
If your client is still struggling with overwhelming debt, and their debts continue to escalate, we can help.
Our team of kind and non-judgmental specialists will step your client through some options to assist them to get their finances back on track. Or you could contact the National Debt helpline.
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