Leading with Lending?

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Mar 28, 2011 9:23 am

First I want to start off by saying that I recently moved to one of the big wires from a small boutique...needless to say the prospecting strategies they expect here are a little different then what I am used to at the boutique.

To make a long story short, I understand I am supposed to set up appointments at the wire in order to obtain clients, as opposed to opening right over the phone with a stock like i did at the boutique. 

I am currently in the process of brainstorming the best way to get appointments that will get me the most assets so I can meet my 1st tier goals.  I wanted to bacically get some others opinions on leading into a business owner with a lending product?  Has anyone had success with this? 

I think it would probably work but I'm tryingt to figure out if it might take too long from the time I introduce the lending product to the time I get any assets from the prospect.  Will it take too long that I won't meet my goals?

Any further help would be really appreciated.  Thanks in advance.

Mar 28, 2011 10:59 pm

Not good idea, sorry.

Find something other people want, then present it to qualified folks with enough repetition to satisfy your masters.

Keep it simple, the complicate path is the road to ruin. 

This is why the majority of success comes from prospecting with muni bonds.

People like tax free, better rates than savings, through issuers they are familiar with, no load/commish, time sensitive and limited availability....

.

Mar 29, 2011 11:04 am

not sure as to why the 'big wire' that you are with cares where the revenue comes from? if selling stock works, why not stick to it?

i've had some success before when i was in banking about calling on businesses for lending. if your firm offers securities-backed lines of credit then i would start there. trying to get a business loan can be difficult right now. if a biz owner can take a LOC against their invested securities, i'm sure that they will bite.

Mar 29, 2011 10:18 am

thats exactly what I'm speaking about.  I have the ability to offer a very very low interest loan against an account of securities.  We're talking like under 3% for 1mill +.  So i thought I could offer a loan.  Get the assets.  And make revenue off both.  ?? 

Its not that the firm cares where the revenue comes from.  Its that they want acertain amount of AUM that I need to hit goals.

Mar 29, 2011 11:54 am

Be careful.

Mar 29, 2011 4:23 pm

[quote=bullmarket2711]

thats exactly what I'm speaking about.  I have the ability to offer a very very low interest loan against an account of securities.  We're talking like under 3% for 1mill +.  So i thought I could offer a loan.  Get the assets.  And make revenue off both.  ?? 

Its not that the firm cares where the revenue comes from.  Its that they want acertain amount of AUM that I need to hit goals.

[/quote]

bingo! my firm also pays us 50bps on the utilized amount. great supplement to your practice. we can't lend against retirement funds. can you? make sure you are incredibly familiar with your lending rules before you get started.

Mar 29, 2011 5:22 pm

hmm. i doubt we can.  i just figured any corporate account or even personal account i would just try to get over here and then do the loan straight from there.  then during the process find out about what kind of retirement plans they have an get thos as well.  have you had much luck raising assets that way?

Mar 29, 2011 9:06 pm

i've only approached 1 prospect this way (i knew he has been having some problems getting a boat loan). he likes the idea and i'm actually following up this week. our firm's minimum loc is 100k (so atleast 167k must be secured).