I interact with a lot of lenders…between 20 and 100 each month…in the training sessions on ‘Tax Return Analysis in a Tough Lending Environment [tm]’.
Two weeks ago a lender in class asked: “Which sectors do you see as doing well, because I’d be happy to call on them!”
As it happens, perhaps with the exception of the health care sector, my other top two picks require specialized knowledge: Agriculture and the wealthy. (Agriculture was great in 2008, not as great in 2009.)
Michael Stara, President of East Coast Consulting Group LLC, Philadelphia wrote a good article on the basics of lending to high net worth clients:
Is Lending to Wealthy Individuals an Oxymoron?
He covers:
- Why the wealthy borrow
- Life stages of the wealthy client
- How credit analysis for the wealthy is legitimately different than for other types of customers
- How your financial institution benefits by cultivating this market
Read the article to learn or review the basics before you add this group of prospects to your ‘hunt’ list.
As for ag…view my free eCourse at www.LendersOnlineTraining.com on ‘Lending to Farmers’.
Happy hunting!
