Lesson’s from the finance department
I have had the privilege of working with some of the best Finance and Insurance professionals in the business.
I have been mad at them, happy with them, frustrated with their process, and even amazed by their ability,
but ,most of all ,I have learned from them.
- It’s math not magic – failing to take into account the proper financial structuring of a deal, may make the deal look great on the front end, but it virtually guarantees you are wasting the customer’s time. Successful delivery requires that the LTV ( loan to value) and the initial investment meet bank criteria. Even the best of the best can’t overcome poorly structured transactions. This forces your finance Manager to work backwards in your deal. He/She if forced to Change the details of the transaction, and present the new details to a customer you failed to prepare. This will cost you money, time, and the trust of your customer.
- Protecting Information is Everyone’s job – Sales people tend to see this as the sole responsibility of a Finance professional . It is a complete disrespect to your client not to care for and secure all of their personal information. You may think it is clever to photo copy docs for your records, but it is not only unethical, it is illegal. This seems easier for a new Sales person to grasp than an “Old dog” so listen up old dogs, The days of keeping open files on your previous customers that include their credit criteria are gone !! If you cant get this any other way, imagine that the clerk at walmart is taking home your bank card information ” Just in case” . Not a great thought is it? STOP doing this.
- Rates and Terms are not determined by the F & I dept. – Whether they are good or bad, at the end of the day it is the customer’s credit record that will determine the tier he falls into ,and the rates that are available to him. Often sales people think that Finance determines the rate based on the profit they would like to make. While there is mark up in rate, the tier and base rate are determined based on the customer’s prior credit history and the level of risk the bank is willing to take.
- Faking it is NOT making it – You may think boosting income or job time or other factors on a credit application is a slick way of getting around the system, but it will in fact introduce you to another system. The Unemployment system, or worse the Prison system
- There is no room for Guesswork – Finance is an exact science, guessing at the payment and quoting “ scenarios” are not doing you or your customers any justice. In fact they frustrate the process and the client. Get your finance manager involved when questions of rate and term surface. You’ll find your customer enjoys being given the facts as they are, and not your best “guess”
The Finance manager is your team mate, they are not an obstacle to your success they are in fact a catalyst for it.
Abusing their system, and asking them to work out side of ethical lines will short circuit your career.
Take some time and learn what it is that they do, how their process works, and how to make the it work for you and your customer.
Sell like your living depends on it