You will start gaining efficiency with each of your experience with client. You'll soon recognize which proposals to contemplate your attention on, and of course, which ones to examine for a short time and hand back to a loan seeker. The more you deal with money professionals, too, the sharper you'll become - and as a result, the more money you will make.
Experienced people know very well the kind of loans that are possible or likely from their funding sources, hence those with the higher probability of success will only be presented. You will quickly become well versed in the current lending and investment trends, and familiar with the lending rates and necessities of your loan sources.
As you review, assist and put together each of the request-for-money proposals, your knowledge will improve your ability to package specific requests, and to 'sell' a loan proposal. Just keep in mind that every time a loan is approved, or when one of your sources decides to invest in a client's business, you'll be taking a financial cut right off the top.
On this spot I would like to guarantee you that you don't need to be financial mastermind or super sales person. The only thing require is the way you put your proposal properly, and obtain a list of sources interested in lending money or investing in a venture to obtain a profit.
You'll find that most of the borrowers you sign to help in finding money for are ignorant that they will have very little if anything to say about the conditions of the loan that may be finally approved. You'll find that most of them are already persuaded that they have the ultimate idea for a business that will make everyone concerned rich. Almost all of them are trying to get happening with little or no money of their own, and they'll think that whatever the current interest rate, it's too much.
Your first task will be to monitor these people. Give details about the facts of life to them, and don't waste your time with them if you have the feeling they'll snub or refuse to accept a loan you line up for them because of interest rates. If they've been to most of the usual loan sources in your area, they'll know that when they want or need money, it's the lender who dictates the terms of the loan.
A potential borrower soon learns the principal rate that is available is almost never used. Actually, the current prime rate plus two percent is usually a good rate of interest for most small businesses. In most cases, such loans have to be well secured with collateral not related with the business.
For the prime plus two rate most of your expected borrower will not meet the criteria. These borrowers will always be placed in high risk category if you talk with your business experience and the type of business involved. After you have your retainer fee, you have to teach your would-be borrowers in this regard. For those who cannot face the essentials of life about interest rates, you have to just forget.
You have to convince your clients in a different manner: i.e. if your client says that he will grant you a share of his business in exchange for the use of your investor's money, then you have to convince him that in that case he will have to give up a large share.
Most small business Investment firm or private investors will want at least twenty five percent, and more frequently than not, up to forty nine percent. In some cases, where a half million dollars or more is provided by the investor, he may (sensibly) ask for as much as seventy to eighty percent. Thus it's completely essential that you learn to qualify your would-be borrower before you get too deeply involved or waste too much of your time.
I would suggest skipping all those who are not interested or unable to pay your retainer fee. And those who can't or don't want to pay the high risk interest rates when you let them in on the real facts of life - disregard them too. And those that have been turned down by practically every lending institution in the country, I would advise you, let some beginner gain practice on them. And these are the ones you need to become skilled at, in order to spot while you are a beginner.
Uchenna Ani-Okoye is an internet marketing advisor
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