As General Manager of Finance House Group, I’ve worked with Accountants for many years and like most of us, Accountants find new tasks daunting. Doing new things in a business that’s working well, can be even more daunting and if I’m being honest, most Accountants I meet are running good businesses. The one thing they have in common is that they all want better businesses!
From what I have learned at the Finance House Group, adding new services to a business that’s profitable needs to be carefully considered. Creating a Finance Broking Division for your business should be high on your list of considerations because advisory conversations have financial implications. Think back to the last time you sat with a client who said, “My business is growing, things are good and I’m needing to expand!” More often than not, that will mean more equipment being required to enable the growth, it could mean cash flow solutions are required. Where do you currently pass that requirement to? What if one said, “I’m in trouble”?
Let’s explore the options:
- Refer to the local Bank. Most local branches don’t have lending specialists in them these days and with branches closing, this isn’t an option for many Regional clients. Banks won’t often help clients with ATO debt and due to COVID-19, many SME’s we speak to have some form of debt.
- Refer to a Local Broker. A good option, as your client is getting options from a panel of lenders, but your ownership of that client is at risk. Your client can now potentially be referred to another supplier, or they may structure the deal that adversely affects your client’s covenants you have put in place for asset protection
- Do Nothing and let the client find their finance. Is that even advisory?!
At Finance House Group, we have a solution that allows you to build an asset (trail book) you own. Yes, the trail book is owned by the firm and can be sold at any time.
Adding new service offerings is also a great way to grow your business. That’s why adding a Finance Broking function makes sense, particularly when Finance House Group can help you create a “white label” solution that adds real value to your clients’ at no cost to your firm.
So, what does the Finance House Group do?
We provide the advice through our Credit Licence, compliance framework, and pay costs such as wages for our employed Brokers. It is cost-free to the Accounting Firm. Our model is unique and adheres to CPA by-laws (APES230).
In our next blog, we’ll talk more about how you can use your Practice Management software to proactively find clients to talk to about existing facilities.
Finance House Group. For Today. For The Future.