New car title loan businesses are cropping up every month and this creates a lot of competition if you're in the business.
Here are six traits you should cultivate in business to earn the trust of your customers:
1. High lending limit
Your customers don’t want to amass small debt amounts from multiple lenders as it will be difficult to keep track of all these loans. Borrowers will want to deal with you only if they are assured that you can give an amount of money that is big enough to take care of their needs. If your loan limit is low, the next logical step for the borrower is to find a lender who can give a higher limit and save the borrower the inconvenience of having to go through the same loan application process through multiple lenders. If your limit is low, you could be missing out on a lot of opportunities and even losing your loyal customers to your competitors.
2. Show your customers that you care
Most customers believe lenders are only interested in making money. You can break this stereotype by giving financial advice that might cost you a few dollars, but will retain your customer base and gain you more customer referrals.
3. Keep up with industry changes
You have to understand the changes that happen in the lending and car industry and what their implications mean to your business and to your customers. Policies change every day and if you don’t keep up to date with them, you could cost your customers a lot of money and maybe even drive your business into losses.
4. Be flexible with your lending terms
Your rates should vary for different levels of debt. To make yourself even more attractive to customers, give preferential lending rates to your most loyal customers. Develop a reputation for being the most flexible lender in your area. If you operate in Fernandina Beach, or San Jose, for instance, give the best rates for title loans in Fernandina Beach or San Jose.
5. Demonstrate your willingness to create long-term relationships
Your customers should not feel as though you are ready to jump at the first opportunity to repossess their vehicles. The lesser people you have on your books who can tell stories about how your business repossessed their vehicles, the better your reputation will be among customers. It works to your advantage if people retain their cars so that they can borrow from you tomorrow.
6. Be a strategic partner
Some of your borrowers are borrowing money from you to inject into their businesses. The fact that they have chosen to borrow from you as opposed to the bank means that you are giving them something the bank cannot give them. Engage such customers a bit more to find a way of building a mutually beneficial relationship that extends in the long term.
About the Author:
Jenny Richards has 10 years experience as a lender of title loans in San Jose. In mean time she writes content for a variety of websites, including www.bayareatitleloans.com.