What next after Cert IV and accreditation? Part 2 - Joanne Brooks

In Part 1 of this article we discussed what training options are available for brokers post Cert IV (or equivalent).

So where can you go for effective training in these other facets of lending?

Outside the commercial lenders there are small number of training organisations who offer commercial lending training ranging from self paced introductory training or one day programs to comprehensive three day programs with ongoing coaching and assignments.

The Plant & Equipment training offered is limited however there are organisations that provide comprehensive two day programs with ongoing coaching and assignments.

Whilst the Plant & Equipment lenders will assist brokers put the deal together the training provided by the lenders is very limited.

The experienced broker

So what is available for the established broker or the business owner who wants to grow the business?

Whilst many finance brokers want to build and develop their business they are spending so much time in the business the time they spend on the business is limited. They are often frustrated and feel they have no option but to continue to work in the business.

There are programs available that provide the business owner with the tools and skills to move from self employed (working in the business) to business owner (working on the business).

For those brokers who do not wish to increase the number of loan producers, but want to know how to run their finance broker business more effectively and profitably there are also programs available today to meet their requirements.  

One of the programs available is one that requires the broker to take a close look at their own financial results, understand what they mean, and explore how to improve volumes written whilst managing expenses effectively.

For example; as mentioned many brokers are so busy working in the business doing the $15 per hour tasks that they feel trapped and not able to grow the business effectively by working on it.

They also believe they cannot afford to put on a Personal Assistant to take them away from that “stuff” which whilst it must be done is not directly income producing.

What would happen if a business took the plunge and put on a PA at say $32,000, how could they recoup the expense?

With a PA looking after the “stuff” in the office and managing the application processes & client follow-up couldn’t the broker’s time be spent more productively generating greater volumes?

Suddenly the PA’s salary is covered by the increase volumes, resulting upfront ands trail income. Yes there is a delay between the cost of the PA and increased income and the broker would need to manage that expense by way of cash resources or overdraft etc.

In time the PA could potentially be offered a career option of becoming a loan writer and the business put a new PA and so the cycle begins.

Another program explores effective and simple strategies that are designed to smooth out the peaks and troughs by effective prospecting.

Discovering how to be conduct the perfect customer presentation, uncover the customer’s real needs and become the trusted finance broker and problems solver for your client.

So let’s look at what some numbers would look like with the business offering a more diverse service and expanding the business:

What if the business owner started writing plant & equipment and commercial applications?

Plant & Equipment - 1 motor vehicle deal a week at $50,000 each at an earn of 2.25%
Brokerage = $1,125 per deal

Commercial - 1 commercial loan per month for $750,000 @ 0.66% upfront and 0.25% trail
Upfront = $4,950
Trail = $156.25 per month

The additional $114,700 income would more than cover the cost of a PA.  

What if we now add one additional loan writer who writes $1mil per month?

It is understood attending training programs takes the participant out of action for a day or so; however not undertaking these programs will most certainly mean the business and the broker’s skills will remain stagnant.

With regulation looming finance brokers need to be aware of what professional development programs are available and get into the habit of attending these programs which in reality will improve their bottom line.

So who wouldn’t want to?

About Joanne Brooks

Joanne has over 25 years of experience in the financial services industry and holds a Diploma in Financial Services and a Certificate IV in Training and Assessment.

Joanne has written a number of training programs, including Diploma of Financial Services (Finance Mortgage Broking Management), Cert IV in Financial Services (Finance Mortgage Broking) and many technical skills programs in the lending field.  Joanne facilitates and personally conducts training in response to the needs of the client .

To learn more about these training programs, visit: www.rippleresults.com.au  or download:

Ripple Results programs                 Ripple Results profile