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How to Grow Your Finance & Insurance Income After the ASIC Flex Changes

by Chris Hopkins, on Sep 1, 2020 9:21:50 AM

 

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The ban on flex commissions should be a welcome development among finance brokers because it will allow you to serve your customers well which translates to having loyal customers and a steady of flow of referrals.

The ban on flex commissions will also separate brokers that are just out for quick bucks from brokers that are out to serve. Broking was born out of wanting to serve customers better and this move by the ASIC is taking us back to our main purpose.

How to fully take advantage of the ASIC Flex Changes

First, understand that the flex changes in commissions benefit the customers greatly so their guards are down, confidence level is up, and are more eager to finance their dream vehicle now more than ever. When a potential customer comes to you for help, closing the deal is going to be a lot easier.

Give them sound financial advice

Yes, customers now get the best interest rate but lenders are also stricter in granting loans. It used to be that the Household Expenditure Method (HEM) can get a loan approved but now, lenders dig deep into the potential customer’s bills and spending habits. A person may have a high income but if he’s got a bad spending habit, he cannot afford a loan.

Proving a person’s ability to make the monthly re-payments without getting in financial trouble is the key to getting approved.

Set client expectations

When going over a potential client’s financials, it is important to be open and tell them what to expect.

  • If a customer wants to replace an existing debt with a newer asset, let them know that he still needs to prove that he can maintain payments even though he’s been paying the existing debt on time.
  • Lenders are also very particular with employment. Long term, full time employment is ideal but, of course, lenders will accommodate other employment types depending on their capacity to pay.
  • Credit reports are analysed more than ever so advice your clients to be careful not to deal with short term loan providers like Payday lenders, Afterpay, Zip pay, etc… because a simple inquiry from them can ruin their credit score. Late payments can also affect credit so keeping bills current is important.

Lenders are doing more due diligence than ever before to make sure they don't grant bad loans. They strive to be compliant and profitable while maintaining great customer service.

Provide customers with the best deal possible

With interest rates purely in the hands of the lenders, it is your job to find the best deal for your customers. Offers will vary and your customers will not fit under all your lenders so you have to help them compare and choose one that suits their needs.

This is where speed and customer service will help you, as a finance broker. Quite frankly, when a new lead comes in, he probably is a lead of other finance brokers as well. It’s just a matter of who can provide the best deal the fastest.

As one of the best in the industry, we’ve developed systems that speeds up the loan application process ten fold. We’ve seen loan approvals in as fast as an hour give the right requirements are provided. And your customers, your leads can process their own loan application using our smart form. They can upload documents and our system will process them automatically.

Our Smart Form alone has made our brokers hundreds of thousands in commissions because they were able to beat all other brokers to the customer. They were able to provide quotes when a customer needs it and they were able to provide the customer service that is needed.

Not only that, we are further improving the service that you can provide to your customers by allowing them to apply for a loan using only their driver’s license.

Imagine how many customers you can try and close everyday if you can get a hold of multiple quotes with just the customer’s driver’s license.

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