Supporting New Equipment Leasing Brokers

by Linda P. Kester Jul/Aug 2014
Leasing sales expert Linda P. Kester advises equipment leasing and finance brokers to lend a supporting hand to new industry brokers as a means to develop mutual beneficial relationships that will ultimately continue to improve the industry at large.

For the equipment financing business to grow and thrive we need new ideas, new perspectives and an industry that has the ability to adapt to changing financial markets and changing customer demands. One way to meet these challenges is to recruit and support new equipment leasing brokers.

Some people may wonder, “How does it possibly make sense to help someone I could be competing against?” It might seem counterintuitive, but many successful business people have found that when they have been generous enough to support new industry participants, their business benefited in the long run. In other words, the person that you take the time to assist will never forget that you did.

1. Supporting New Brokers Helps Build Our Industry

For leasing brokers to be successful, the industry has to be strong and vibrant. By supporting new brokers, the industry environment is growing, providing an opportunity for the entire industry to expand. This growth attracts new potential lessees, and in turn creates more opportunities for the entire industry. Don’t think of it as someone taking a slice of your pie; think of it as building a bigger pie.

2. Industry Growth Benefits the Bottom Line

Advancing the leasing industry builds a larger leasing universe for all participants to grow their customer base and shape industry niches. As that happens, leasing companies with unique niches complement one another rather than compete with each other. This relationship can create cross-promotions and referrals between perceived competitors.

3. Perceived Competition is Motivating

A little competition is a good thing. Without challenges from our peers, we will never feel the desire to intensify ambitions, book a record amount of volume and win that dream account.

If you want to be a profitable equipment leasing broker, it’s noble to use other brokers as a standard to measure your individual strengths and weaknesses. By knowing and working with competitors, you’ll have a better idea of what to measure. It’s a great way to track progress or catch up to your competition.
Now I’m not saying you should give business away — the point is that it only takes a few small gestures to create a longstanding relationship between you and other brokers. Contact them personally to introduce yourself and establish an ongoing line of communication with them. If you don’t, you will never know when you can assist each other with a lease.

4. Stops People from Wasting Time on Bad Deals

As Spencer Richman, CLP, BPB and past NAELB president wrote, “The single most common time waster that plagues inexperienced equipment leasing professionals is working on transactions that they cannot get approved.”

When new brokers come into this industry with no training or support, one of the biggest mistakes the new broker makes is becoming excited about every possible application. It’s not realistic that every application will turn into a funded lease. Only by receiving training and support will the new broker begin to understand “good” applications from “bad” applications.

It’s no secret or surprise that new brokers may struggle in their first couple of months in business. That is why the training and the initial support they receive can be the key to whether or not they will know the best niches to develop and the best funders to approve their niche transactions. In other words, training and support are the keys to the success or failure of the new broker.

5. Supporting New Brokers Brings Innovation

Industry veterans may ask why they should work with new brokers. Candidly, people new to the industry often have inspirational flashes of creativity. The ever changing environment of social media platforms, the multiple ways of connecting people and consolidating effort are creating exciting opportunities for breakthroughs in how leasing is marketed. It is now possible to do old things in new ways, and to try new approaches that weren’t possible before. New brokers can import new options for refreshing our everyday work habits. And trust me, those new techniques will put you ahead of your competition.

This isn’t just about chasing the latest fad, or about innovation for its own sake. It’s about finding new ways to make a difference in the equipment leasing field. As brokers we need to identify innovations in all aspects of our industry that will capitalize on the opportunities of the future. We need to have a clear sense of what innovation really means and learn how to consistently apply those innovations. Fresh people in the industry do this for the industry.

6. We Can Make Sure New Brokers Have a Solid Infrastructure

Systems, procedures and support form the backbone of a leasing company, yet these issues are not always at the top of the priority list for the new broker. Growing before you have your systems and processes in place means that you might not be able to provide the product your customers need. When we guide the new broker and help them get organized and set boundaries, we significantly increase their chances of success.

7. Fast Forward: Mentorship Works!

One way to develop new brokers is to mentor them. The National Association of Equipment Leasing Brokers recently formed an equipment leasing school. Upon completion, a graduate receives a mentoring program for one full year. Mentoring does not mean handholding; mentoring means assisting new brokers in developing their own independence. Why? Because the mentored brokers will one day act as mentors to new brokers. It’s a natural cycle.
Rosanne Wilson, CLP, BPB president of 1st Independent Leasing, former board member of the NAELB and former president of the CLP Foundation states, “When it comes to mentorship, it is an unwritten rule that one should give back at least what they’ve received. There are some very highly skilled NAELB members who are happy to help the new broker by mentoring them.”

Just one aspect of mentoring a new broker is to help develop familiarity with knowing funders and what the different appetites the funders have. The new broker wants to establish funder relationships, but don’t know where to start. A mentor can teach them about the funders and their appetites. It’s no secret that if new brokers don’t have the right mix of funder relationships, they will not succeed.

Mentors and fellow NAELB members can point the new broker to the right funders for particular deals the new broker might have. They do this because they want to help the new broker succeed. They are glad to share the information with a new broker.

Mentors can educate the new broker on a high standard of ethics so they will be a symbol of the right behavior as a representative of the industry. New brokers need to understand best industry practices so they don’t find themselves getting into trouble with a lessee or even a funding source.

The new broker is truly a representative of our industry and we should teach the new broker about what is considered ethical behavior and what is not so they don’t “damage” the image of our industry. Unethical behavior hurts all of us in this business.

A mentor can act as a sounding board for the new broker by providing helpful feedback to any questions they have. The NAELB has a members-only online forum where new broker members can ask questions of all other members. The forum addresses multiple topics from sales questions to documentation issues. This is another reason we want to help the new broker. If he or she doesn’t understand what the words in the documents mean, how can they expect to have a customer sign those documents? If they can’t answer a customer’s question about the documents, it makes the industry look bad.

Gary Greene CLP, BPB and current NAELB board member says, “It’s a great big world that we live in with plenty of room for more professionals in our industry. We all know that one bad player — whether a complete amateur or an experienced broker with low ethical standards — can cause lots of problems for the whole lot of us. Sure, we can demonstrate how different we are than the amateur (or other bad example), but we’ve first got to get past the negative preconception in the minds of our current prospect who encountered that bad example. Selling our services is always easier when our prospects have either positive or neutral opinions about the value we bring to their business. So, I don’t fear more participants in the lease broker business since there’s still plenty to go around. I don’t really fear the amateur, either, but would far rather have all of our competitors be professional and accomplished rather than troublemakers.”

Brian Huey, current NAELB board member, comments, “It is crucial for the new broker to hook in tight with credible, experienced brokers through potentially turbulent years (like any startup). Moreover, right away the new broker should attend conferences for education and networking, and continue to do so year in and year out.”

People with vision who have their own companies and who have the courage to help new brokers will heighten the equipment leasing industry. The NAELB’s leasing school helps new participants enter the industry, provides a networking environment to advance their mutual business interests and is the only association in the industry that is run by brokers, for brokers.

Linda P. Kester is a bestselling author and professional speaker with 20 years of experience in leasing sales and marketing management. As founder of the Institute of Personal Development, Kester has helped hundreds of salespeople increase their volume. Her book, 366 Marketing Tips for Equipment Leasing, has produced results for leasing companies in the U.S., United Kingdom and Australia. For more information, visit www.lindakester.com.

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