Which client should you take on, and which should you turn away?

  • Borrowing gets easier for regional 'Aussie battlers' despite being at most credit risk

    The new system allows banks to make lending decisions based on comprehensive data

  • Borrowing gets easier for regional 'Aussie battlers' despite being at most credit risk

    The new system allows banks to make lending decisions based on comprehensive data

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    Choosing whether to take on or turn someone away can be tricky and risky. But like most challenges in business, it can be navigated with the right approach.

    “It all starts with the way you market and advertise your business,” Birdie Wealth director Nathan Smith told MPA. "Are you working on the cheapest rate or do you have the ability to find everyone a solution? Are you offering a premium service for high net-worth professionals? It's about finding your niche and sending a clear message within that space."

    Smith’s team have found their niche with mums and dads within 15kms of the Sutherland Shire who are looking to purchase locally. They explain to anyone looking for low or no loc loans that they don’t specialise in the area and suggest seeking the service of other brokers who know how to position such loan applications better.

    Smith never fails to keep every person he accepts as a client abreast with changes in the lending landscape, focusing more on how the changes will affect the client than his business. Initially, Smith’s clients would agree with the changes until they understand the unintended consequences of those changes. Many even became vocal in their support of brokers and took their opinion to social media and signing petitions.

    For Smith, there are one of two ways brokers can choose to position themselves if the customer-paid model materialises. “The remaining brokers can either offer high-end, high-value services more than home loans,” Smith said. “Or they can position themselves as a "last resort" broker if they don’t fit the big four.”

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    Original Article