Small lending outfits or financial lenders that are just starting up face great challenges in making their mark, especially against bigger and more established lenders. The good news is that mortgage branches offer lenders a number of great benefits that can help them become competitive in a high stakes marketplace.
Saves You Fees and Paperwork
Financial lenders operating on their own have to take care of all the legal paperwork that their state and/or local community require of a lender. Requirements for how lenders may practice their loans differ from state to state, so you’ll have to carefully research what your state requires, including paying licensing fees. When a lender joins up with other mortgage branches within a network, they get access to the parent branch’s name, licensing and credentials. All of these can make licensing and registering with your local government much easier, and can even save you licensing fees.
Setting up your own lending practice sounds exciting until you recognize you have to staff your lending operation with qualified individuals. If you can’t find people with the experience you want for your practice, you’ll have to train them. If you’re using new computer technology for your workplace, you may have to train them anyway. This will take up time and resources to get the training resources in place, and you may even need to hire outside instructors for the task. Mortgage net branch companies offer net branches programs to train their employees when they join up. And if your parent branch has been in operation for a substantial period of time, they can instruct your staff on how to avoid possible operational pitfalls.
As a small lender, you may not have much to offer in the way of employee benefits. Your budget or your cash flow may not be high enough to afford high quality medical insurance, dental insurance, pensions or other benefits. This can hurt if you’re trying to hire well qualified staff that are attracted to a hefty benefits package. The good news is that there are mortgage branches that offer their subsidiaries benefits from the parent company, including health insurance or investment in a 401(k). You can advertise these benefits on behalf of your practice. And if the parent branch is well known for their benefit packages, it’s even better, as the name recognition alone may draw more applicants to your doorstep.
Business promotion is not an easy chore for any independent operation. To get known on the internet, you need a first rate website to promote your services, including your loans and how to apply. Many forms of advertising, including commercials for television, radio and the internet, require video equipment. You need to shoot the video, edit it, and possibly include visual effects as well. Mortgage net branch companies can benefit from having their parent branch provide marketing services and equipment to promote themselves. Before you become a net branch, ask what kind of marketing support the parent branch provides.
Mortgage branches with a well trained staff and the name recognition of their parent branch can get an important leg up on other lenders. Don’t hesitate to ask a prospective mortgage parent branch what they have to offer and see how your practice can benefit.