August 25, 2024

Clients’ Costs vs. Opportunity Costs

The network is a big advocate of brokers understanding the commercial drivers for clients, whether they are trading businesses or property investors.

Having this knowledge moves the relationship far beyond transactional, can provide more suitable outcomes for the client and positions the broker as a more valuable advisor in a longer-term relationship.

Navigating upfront costs

For trading business clients, is turning down work because of the up-front costs a lost opportunity or a bigger long-term opportunity cost?

The up-front costs for taking on new work, contracts and opportunities can prevent a business from taking them on, including: 

  • Staff costs
  • Materials or finished goods
  • Vehicles or machinery

If they turn down the work due to the upfront costs, what’s the real price—just this one job and the resulting margin?

Or is there a bigger long-term opportunity cost in turning work down today? 

  • Will an existing customer return if they work with a competitor this time?
  • Will any prospective customer come back next time if you turn them down the first time?

By understanding that most of the costs for new work, contracts, and opportunities are up front, and all of the revenue can be in arrears—you can help your clients afford to take up new opportunities and do more business!

Fiducia Commercial Network offers a range of working capital and cash flow solutions, so you can source what best suits each client.

Don’t let clients miss an opportunity – or create a long-term opportunity cost.

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About Fiducia Commercial Network

Fiducia Commercial Network is a commercial finance ‘Appointed Representative’ network created to allow independent firms to provide commercial property finance and trading business finance options to their existing client base and network.

Joining the network provides opportunities for professional brokers to offer a full range of commercial finance solutions by acting as an Appointed Representative (AR) with the full support of the Fiducia Commercial Network team.

The Fiducia Commercial Network membership includes FCA authorisation and reporting, PI insurance, and NACFB membership, plus business, compliance, finance, system, and admin support from a company with over 20 years’ experience in commercial finance.

If you’d like to discuss joining Fiducia Commercial Network or you’d like to apply to become an Appointed Representative…

SPEAK TO OUR TEAM

 

To discuss Fiducia Commercial Network or to apply to become an Appointed Representative email the team via by clicking this link.

For all media and marketing enquiries contact –  pr@fiduciagroup.co.uk