There are two primary ways you can tap into the debt advice market without completely overhauling your business:
- Loan Writer: enables the accredited person to advise on and write the lending transaction
- Outsource Referral Model: focus on strategy and refer to an experienced Lending Manager, while retaining complete ownership of the process and the client
The requirements differ for each option and as you would expect, there are pros and cons for each model – depending on the way you look to structure your business and advice proposition.
Some of the pros and cons of becoming a Loan Writer are:
| Pros | Cons |
| Additional practice income | Additional compliance documentation and paper work |
| You already understand your client’s needs | Additional education required |
| Increased sale value of your existing practice | Diminished time to focus on your core business |
| Assists in strengthening relationship with client |
Some of the pros and cons of becoming a Referrer are:
| Pros | Cons |
| Additional practice income | Finding the right referral partner that suits your business |
| Increased sale value of your existing practice | Establishing the right terms of the referral agreement |
| Increased opportunity to retain customer database | Sharing of remuneration with a loan writer |
| No increase in paperwork or education | |
| Client ownership remains yours |
While it may appear intimidating to new entrants, the mortgage industry presents an exciting and vibrant channel, impacting positively on the lives of consumers and increasing bottom lines for adviser businesses.
It is imperative with all the changes happening in both the accounting and financial planning worlds that building new revenue streams is the future of a successful multi-faceted business. Lending is a natural progression as a value add to your core business.
Tanya Sale is the chief executive officer of outsource financial. outsource financial work in partnership with legal firms, financial planners, Accountants, Licensed Conveyance’s and other Professional Service Groups who want to offer their clients a simple and cost-effective range of lending, leasing and asset finance.
Tanya is also featured in the No More Practice 30 Day Buisness Challenge. Register today for the ultimate business transformation experience.
