When it comes to the special finance market, there often is more than meets the eye. In other words, there is no one way sure-fire way to market to customers and prospects who are having credit problems.
Most experts agree that bankruptcies are the bread and butter of any company that is interested in the subprime lending market. This is especially true if you have the perfect mix of lenders, inventory and marketing methods.
In the past, those who had filed for bankruptcy would only be approved for financing after seven years but over time that period has continued to shrink, with some lenders willing to provide financing immediately after someone has filed for bankruptcy. Also disappearing are restrictions on the type of bankruptcies subprime lenders are willing to approve.
One important thing to keep in mind about the bankruptcy funding market is that it is anything but static. Each and every day new consumers come into the market. These individuals are knee-deep in financial difficulties. In many cases, after a period of time, they will have recovered from their financial difficulties, however, and are ready to move forward with more expensive purchases. For example, they will have gone from wanting the cheapest car to get them from home to work and back to purchasing a new car.
Working with these individuals over the long haul provides the opportunity to remain in contact with these them so that they will come to see you as more than just a subprime lender. Instead, they will see you as a partner, remembering that you were there for them when no one else was.
If you are looking to market to individuals who have filed for bankruptcy, here are some important things to keep in mind when approaching these prospects:
- Be open and honest. Don’t use terms like pre-approved and pre-qualified haphazardly. Instead offer them an invitation to apply.
- Be sensitive. Don’t shame recipients or try to scare them into working with you. Many of these individuals are surprised to learn that they can obtain financing. Letting them know that you would like to help them will go a long way toward gaining their trust-and their business.
- Don’t generalize. Not everyone who has filed for bankruptcy has the same story. Don’t try to guess about their specific circumstances.
- Always include a call-to-action. Don’t make a prospect guess how to contact you or what their next step should be. Instead, give them a toll-free number or direct them to a specific landing page on your website.
Obtaining an accurate bankruptcy list is an important first step when it comes to working with those who have filed for bankruptcy. How you handle the leads on this list, however, will make a huge difference when it comes to capitalizing on it.