Every person has different perspectives, especially when it comes to purchases and in availing of any financial product. And this concept stands true to loan applications as well.
Convincing someone to apply for a loan will undoubtedly take a lot of effort. To help in your approach, here are some strategies to consider and concepts to ponder to persuade a person to apply for a loan.
Build Relationships and your Network
Before trying to convince clients to get a loan, you must first have a network to offer it to. Spread the word by reaching out to various professionals in different industries and build your relationship with them. A genuine connection with the right people will widen your referral network. Persuading employees to take a payday advance will be easier when you have built a rapport with them or when you are referred by someone they know.
Let your network know where they can contact you. Build a website that includes information and the financial services you offer. You may also incorporate testimonials from previous clients and information that could be beneficial to potential clients.
Other techniques include placing a digital ad on social media networks and real estate or accounting websites. It is also worthwhile to get involved in public events in your community.
Attending functions is an excellent venue to converse with people and let them know of your offerings.
Know the Client
Through a short and friendly interview, try to get to know the person by using open-ended questions. Obtaining their lifestyle and their background can provide you with pertinent information that you can use to draw them for a loan. Remember that asking the right questions can help in uncovering the customer’s desire and motivation.
The reason why people apply for loans differ, but some of the more common goal is for big purchases such as travel tickets, equipment, home renovation, home investment, or for starting a business. Unexpected circumstances or accidents can also push people to take a loan. Since a need is imminent, these people are relatively easy to persuade. So the next step is to convince them to avail of the program you are marketing. And based on the information you gathered, you can now mould your presentation to fit their needs.
If they have no immediate need for a loan, utilise their interest to entice them to make a loan. You may even ask questions such as “Do you have an idea of the steps in applying for a loan?” When they realise the ease of the application process, they may be attracted to the idea.
Discuss the Benefits
When talking to a client, it is best if you discuss how the loan benefits them. Talking about the features of the loan will give them a monotonous experience. For instance, instead of indicating the low monthly interest rate, you can suggest that the small monthly loan repayment will not be a burden to them. Furthermore, be expressive in your explanation.
Use strong words that elicit emotions such as: “You will enjoy your loan for a vacation, and this enjoyment won’t fade because of low repayment rates”.
Avoid Technical Expressions
The use of technical terminologies may look more professional, but sometimes it tends to put a gap between you and your client. It is recommended that you explain the loan or financial terminology into something they can easily comprehend. Then you can follow up your explanation with the technical jargon. This will let your client feel involved in the conversation and further their knowledge as well.
Remember that many first time applicants are not familiar with the terms used in banking. Imagine declaring to the client of the loan’s low APR, which they can interpret as something negative because people tend to see bigger as better.
Keep it Short
The human brain can only comprehend four things at a time. For a better chance of convincing a client, make the list of loan benefits short. Rather than enumerating all the top ten advantages of the loan and comparing it with other investments, you may emphasise your discussion on the three most essential benefits.
Highlight the Distinct Offer
If you start your persuasion with the benefits that your client can avail from other competitors, you’ll not have any success. Instead, emphasise the unique offering of your organisation or the loan program. This will spark the interest of the client because they know that they have an opportunity of availing of a unique service!
With the techniques mentioned above, it may now be a lot easier to convince clients to apply for a loan. Moreover, remember that a follow up with your clients is also essential. Make them feel remembered but do not overwhelm. Keep in touch with them and make yourself accessible for any inquiries.