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From my perspective, a financial advisor/consultant is a person who helps either an individual or a small business obtain credit for personal or business use. Credit facilities can be used for working capital, car, truck or bus loans/leases, mortgages, inventory or equipment purchases, start up capital or debt reduction.
In my business I am primarily dealing with entrepreneurs, small family businesses and individual owner-operators who come to me for assistance in obtaining credit to purchase their vehicles. Since I have been doing this for over fifteen years, a lot of my customers have also asked for my advice on every form of credit that I listed above.
I have tried to analyze why they feel comfortable asking for my help in obtaining credit or financial help in areas that I may not specialize in. Some of the areas that make a difference are outlined below.
Does the person have overall financial knowledge or is this person just trying to sell a specific product? Has this person been working in the financial area for some period of time so that they are able to add some expertise to the process? Is the advisor going to be willing to work hard to help solve your financial request or are they going to walk away and not be available because there is a problem? If you feel it is necessary, ask for references.
Since financial institutions change their lending criteria depending on market conditions, does the person have more than one source or are they only connected to one company’s product? What happens if the primary financial source turns you down because of something negative showing up in your credit report or financial statements? Is the advisor going to be able to offer alternative solutions and/or other financial sources? This is where most financial advisors fail because they do not have back up sources.
What specific financial skills does this person possess? Have they been able to analyze your financial records? Can they interpret your personal credit report? Do they understand your cash flow? These should be basic requirements for any financial advisor/analyst.
Has the advisor “heard” your request or are they too busy telling you what they can do or what they can offer? Any good advisor is going to make you feel comfortable and give you assurances that they understand your request and that they have a solution for your particular situation.
Every advisor/consultant has to get paid for their services. Has the person explained the specific fee structure or the cost of the service? This should be explained up front so that you have an idea of what you will be expected to pay. You want to make sure there are no hidden costs. If necessary, ask for a written contract so that there are no misunderstandings of what is expected from all parties involved.
Overall, you must feel comfortable with whomever you decide to hire. Credit and financial decisions are not to be taken lightly and need to be handled in a professional manner.
Arnold L. Saltzman, Partner
Trans Capital Resources Group, LP
One Palmer Terrace
Carlstadt, NJ 07072
Phone: 201-935-4488 x 101
Fax: 201-935-4288
Email: Arnie@TCRGLP.com