The Asset Finance Story

October 30th, 2017

by Tony van de Kerkhof,  Co-Owner of JK Finance

Anxious about how your clients and referral partners will react to you adding asset finance to your business model? I’m going to draw on an analogy my mentor used with me when I first became a broker, added Connective Asset Finance to my business and started lending in the small business, equipment, car and asset finance space.

When you walk into a bar, if you have the end goal of establishing some form of new relationship, you can’t just talk to the same old people. You have to talk to someone new, and to stand out from the crowd, offer them something no one else in the room has the guts to offer. And most importantly, don’t be afraid of a no!

So let’s picture a bar full of accountants, financials planners, book keepers and the like. There are some stunning, bespectacled accountants at the bar, but your group of broker friends are smirking.

Broker 1:         “Pfft! They’ve probably got a broker at home already.”

Broker 2:         “Can you imagine the database on that one?”

Broker 3:         “Ok first of all, stop objectifying their database! Accountants are people too. Second of all, you haven’t even tried speaking to them, so how would you know if they’ve got a relationship with a broker or not?”

Broker 3 dares the others to go and try to hook up with one of the accountants at the bar. So Broker 1 steps up to the plate first. He puts down his drink and shuffles timidly over to one of the accountants. You can barely hear him say:

Broker 1:         “Ummm… so… do you need a broker?”

Accountant:     “Excuse me? No thanks. I’m right.”

Ouch!

Broker 2 laughs and says “Confidence is key, people!” and then saunters over to take a turn.

Broker 2:         “I can get the lowest interest rates on the market. I’ve got experience and I can make it happen!”

Accountant:     “If I just wanted the lowest rate I’d go on Loan-Tinder! Thanks, but no thanks.”

Double ouch!

Broker 3 slams down the last of his drink. It’s time to show them how it’s done. He goes over and starts talking to the accountants.

Broker 3:         “Man, times are tough! It used to be so simple to point people in the right direction. You don’t know me, but I honestly want to see people succeed. Hear me out. Banks are pulling away from helping start-ups and small businesses with unsecured short-term finance – they only want to know you when you’re established!

“Spotcap, Prospa, BOLT, I’ve got it all! You go to your local bank branch and your banker has moved on to a different market. Maybe they’re pushing personal loans. Or credit cards. They could help before, but they can’t anymore. You need someone stable with you through this change we’re all seeing! You need someone who can do things for your clients that no one else can.

“I’m not asking to deep dive into a partnership, but maybe you can give me a chance with the next person who needs help with an unsecured loan and we’ll take it from there? Let me grab your number and I’ll call you tomorrow to lock in a time to visit your office and show you what I mean, how does that sound?”

Broker 3 tucks the napkin with the number on it into his pocket, buys the accountant a drink and walks back to his mates.

The morals to this story?

• Don’t be afraid of a no.
• Understand what you’re capable of achieving with the Connective Asset Finance offer.
• Use that to create a point of difference for your business.

And remember, all relationships are about give and take. But if all a referral partner wants is a big share of your commission, they may be a gold-digger, so you probably don’t want to put a ring on it anyway!

About Tony van de Kerkhof

Tony is co-owner of JK Finance in Narre Warren, Victoria, which has now been operating for 1.5 years and is going from strength to strength. Tony joined the business after a successful career with NAB, where he went from the call centre, to being a SHINE award winning Mobile Lender specialising in home lending, before wrapping up as a NAB Branch Manager. Tony spent 4 years working in China and speaks fluent Mandarin Chinese. He expanded his offer into asset finance to provide his clients with a “one-stop-shop they can’t ever leave behind” and establish additional income streams for the business.