Being a part of the Adviser Toolbox website, you would already appreciate the value of outsourcing. Yet with regards lending the benefits of outsourcing are enormous.
20m v 20h
Executing a loan perfectly from start to finish for a client can take around 20 hours of hard work over a stretched out period of 6-8 weeks, when you consider the pre application mandatory research and responsible lending checks, the application process itself, and then the post settlement service, which is often where things fall over.
When outsourcing, you remove yourself from this entire process, and instead focus on the important part, your client and making sure their structure is sound and correct for the overall financial picture. This can be the difference between 20 mins and 20 hours of work, which has a major financials impact as per the below:
- DIY = $125 p/hr (i.e. $2,500 / 20 hours)
- Outsourcing = $1,000 p/hr (i.e. $2,500 x 40% / 1 hour)
The above example is conservative because we really wouldn’t expect you to spend even 1 full hour on the lending process, but the point is made.
Of course it is not all about the money, there are many more benefits that help your business and your life, such as:
- eliminating the task of constantly looking for and holding on to the right people
- client protection; one less bank a client has to go the better for your business
- you don’t have the expense of staff, i.e. payg tax, insurance, training etc
- avoid the growing compliance burden of lending, the extra licensing requirements, CPD training
- keep your costs down, NO extra costs, no new software, industry memberships, ASIC fees etc
- you have peace of mind, knowing seasoned professionals are looking after you and your client
- no headaches; what a great way to do business, staying in control, working on your business, but not bogged down with the admin