Thinking outside the box for your clients

As any advisers who were around during the credit crunch will attest, if you focus solely on one area or solution and never explore other opportunities you’re likely to be hit hard when the market dips - as all markets inevitably do. Those brokers that came out of the last downturn did so with a clear understanding of how important it is to have additional income streams and to look for all of the opportunities in a situation rather than just search for one in particular.
 
And indeed, being able to assess a client on a holistic basis and address all of their needs is not just beneficial to your income. It also means the client gets an efficient service and a happy client is a returning client.
 
This is something we witnessed recently with one client who was looking for premises for her previously-home based business. The client was introduced to us by a broker. She had identified a property in Westminster, London and agreed on a purchase price of £2.75m. The property was subject to VAT of £550,000.
 
The client’s high street bank had shown little interest in the case, and the broker had sent her our way. With a more detailed understanding of what was required, we were able to get her bank to agree on a term loan of £2.1m toward the purchase price (76% LTV). A VAT loan was also required, and terms were agreed by a specialist VAT loan lender, however not taken up as the high street lender eventually covered the loan.
 
At a point close to completion, the client advised that one of her debtors that she had expected to settle an invoice, had delayed payment. This left the client with a cash flow shortfall of around £50,000. This is where we decided to ‘think outside the box’. Using the knowhow and specialisms of a  sister company, we were able to refer the client to our Liquidity Club which was able to arrange a spot invoice payment against a debtor of £50,000.
 
Following completion of the transaction, we met with the client again. Her business provides consultation services for clients who build and invest in care homes. It transpired that her clients were hungry for land where planning is already in place. Since our sister company, Caliber Land, specialises in development and planning it seemed a natural next step to introduce her to the team.
 
What started as a straightforward business loan resulted in several other leads.
 
The point is this - if you’re not talking to your clients and exploring their situation in depth you could be missing out on potential business opportunities. So next time you’re speaking with a client, as clichéd as it may sound, think outside the box. You’ll be glad you did, and so will your client.