On the subject of the two types of business, Russell Martin of Finance 4 Business believes that there are no disadvantages to repeat business, whereas new business can sometimes result in wasted time if new clients don’t intent to proceed.
Additionally, in his opinion, repeat business converts at a higher ratio as it is generally easier to get momentum in the deal at an early stage. “Finance 4 Business follows a proven internally developed after care programme that we follow on every transaction, lending itself to repeat business,” he added, stating that regular communication through various media channels is essential.
James Bloom of Regentsmead, which has had some clients for over 20 years, agrees that repeat business is much simpler as much less time is needed to be spent converting the lead, as you already have a willing client who knows the value of your offering.
However, James believes there are disadvantages to repeat business. “…It is easy to get [too] comfortable with the relationship and it is vital to constantly re-assess even with a good client you have dealt with several times,” James explained, adding that he find repeat business leads to more time being spent on the actual transaction.
James stated that in order to make sure clients return, promises should always be delivered. “…Never let your clients down, be flexible and available at all times to assist them and ensure that they become fans of your brand. A good client should enjoy working with you and value service over cost,” he added.
Mo Chishti of Total Money Management feels that repeat business has no real disadvantages as most see it as you are only as good as your last deal, adding that good IT/software systems and a surety of good original customer experience will always appeal. “It is always good to have a feedback questionnaire, as you then know which parts of your business need a little more tweaking than others,” he mentioned.
Victor Jannels of ATOM, however, believes that new and repeat business are as good as each other, adding that new business should not be ignored.
“Obviously, repeat business and their referrals are valuable and cost effective but ignoring new business is a perilous path to take,” he said.
“I don’t think there is a ‘best’ type of business. You should all concentrate in obtaining business through all possible streams,” in the eyes of Neil Molyneux from Masthaven Bridging Finance.
He also maintained that having repeat business works as an endorsement from the customer saying ‘you did it right’.
“So many businesses in this day [and] age are constantly looking for new customers. You only have to read the press to understand how dissatisfied customers are when ‘new customers’ received better offers,” Neil added.
Stephen Burns of Adapt Finance also agrees that while both new and repeat business are great, repeat business reduces the process.
“If the case is to go to the same lender as before, again, the admin burden is reduced,” he stated, adding that general application formats across the board should make the discussion.
In order to keep the client coming back for more, Stephen said: “Simple - service standards. Be the best.”
Bob Sturges of Omni Capital also agreed that a blend is desirable for established lenders.
“Repeat business from familiar sources suggests satisfaction with one's offering and provides time for relationships to develop and mature. But in order to grow, and help dissipate risk through over-exposure to too few sources, lenders will constantly be on the look-out for new opportunities,” he explained.
However, Bob also believes that repeat business can have its negatives: “While I wouldn't dream of suggesting that familiarity breeds contempt, it clearly does not make good commercial sense for a lender to rely too heavily on too small a pool of introducers; nor for an introducer to put all their faith in too few lenders.”
Harry Cloke, of Imperial Blue Finance told B&C that it all boils down to the balance between growth and longevity, stating that firms which fail to balance both repeat and new business risk sliding towards stagnation or towards too risky and fragile a model.
“Valued and respectful relationships with longstanding customers, as well as the motivation to build such a strong bond with new clients, are at the heart of any firm with a long and successful history,” Harry concluded.
Keith Aldridge of Amicus reminded that with the right propositions in place, repeat business can help generate new business via referrals.
“Of course you need new business to drive this model, but my experiences, previously as a broker for 20 years and since 2009 as a lender, have always reinforced my belief that your new business comes on the back of referrals from previously satisfied clients who themselves return for more of the same,” Keith said.
“New quality business is vital, but there is much to do if that new business is to become the foundation of your model and generate the future business from people you have grown to trust and respect. With me it always comes back to trust.....by all parties in all parties,” he added.
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