In the financial services industry, an objection-handling framework can be especially useful when opening up a discussion with clients. By anticipating objections and having a structured approach to addressing them, you can create a more positive and productive conversation.
This can lead to better outcomes for both you and your client, as you can ensure that their concerns are fully addressed and they have a clear understanding of the options available to them.
Plus, by handling objections effectively, you can demonstrate your value as a trusted advisor and build stronger relationships with your clients over time.
The ARC objection framework
The ARC framework is a commonly used method for handling objections in a simple and effective way. ARC stands for Acknowledge, Respond, and Continue. This method is particularly useful for handling simpler objections that may arise during a conversation, negotiation, or sales pitch.
The first step in the ARC framework is to acknowledge the objection, listen actively, and empathise with the person who is raising it.
Next, you should respond to the objection by providing a clear and concise answer, addressing the concerns raised by the objection, and providing relevant information.
Finally, you should continue the discussion by moving the conversation back on track and continuing forward with qualifying the client.
- Acknowledge - "Yes, I understand you're pushed for time."
- Respond - "It’s a really quick call."
- Continue - "So, you said you turned over $X.”
Using the ARC framework has several benefits:
- It allows you to handle objections in a structured and organised manner, making it easier to manage the conversation
- It shows that you're actively listening and addressing the person's concerns, which can help to build trust and strengthen the relationship
- It can help to prevent objections from escalating into more significant issues, saving time and resources in the long run
ARC-based objection responses
Now, let's put the ARC framework into practice.
Straight forward objections to be handled using the ARC method
| Objection | Response |
| “I would like a call back." or "This is taking too long.” | A: I completely understand you’re pushed for time and looking for a callback.
R: This will be a super quick call, which will allow me to streamline some options for you on the back-end.
C: Can you tell me a little bit more about the business you run and what you specialise in? |
| “I answered all these questions with your colleague already." | A: I really appreciate your time on the phone with my colleague running through the initial criteria. R: However, those questions were to confirm that, at minimum, you qualify for some sort of loan. My job now is to understand your business in more depth so I can provide you with a strong indication of what you’re eligible for, as working capital/asset finance is my speciality. I'll be able to use this information to advocate for you on behalf of our lenders and ensure we get the best outcome possible. C: With that being said, are you able to tell me more about your business operations? |
“I've tried to get finance before." or "I have a bad credit file."
The client's adamant they don't qualify. | A: I completely understand the experience you’ve had in the past with other lenders/brokers.
R: Given our platform makes us one of the largest commercial brokerages of our kind working in this space, I can assure you that we’ll be able to let you know exactly what you’re eligible for. I’m more than happy to do a quick updated assessment for you in-house. It doesn’t cost anything, and then, at least, you walk away with either an option or a game plan for you to work towards in order to qualify for something in the near future.
C: Continue onto fact find. |
| “I don’t feel comfortable using the bank link.” | A: I completely understand where you’re coming from; it’s important to know who you’re working with and that you have the reassurance needed around what financial information you’re sharing.
R: Have you ever used illion bank statements before? You may have used it with any other major bank or non-bank lender in the past. Essentially, it takes a snapshot of your business conduct at this moment in time in a read-only PDF format that a credit analyst needs to assess your serviceability. illion are one of the three main global credit data providers and have bank-grade encryption and used by lenders Australia-wide.
C: No worries, let me send you off a quick email with some additional information about the illion link and a bit about Valiant and who we are in the Australian market. If you’re able to take a read, and once you feel comfortable, upload the statements for me? It should only take 30 seconds. |
| “Can I do the bank statements/return the documents later?” | A: I completely understand that you’re busy at this time. R: …which is why we've made the document collection process super quick, and it will only take a couple of minutes to return both. What I’ll do for you now is walk you through the process in order to mitigate any IT issues. C: If you’re able to pop me on loudspeaker and open your email for me now… |
| “The establishment fee too high.” | A: I completely understand your concerns around the establishment fee. R: However, this is a small cost to pay in order to be able to achieve [FUNDING NEED] for the [BENEFIT] of the business. This is also your best option given [CIRCUMSTANCE/S]. C: Does this make sense? Great, now we need X, Y, and Z in order to proceed with a loan… |
Working-capital objections to be handled using the ARC method
| Objection | Response |
“I am looking for government loans.”
(GGS/SME recovery scheme loans) | A: I completely understand why a government-backed loan is your preference. R: I'm more than happy to see what lenders you qualify for across the Australian marketplace, inclusive of the government recovery schemes. However, please bear in mind that the majority of those facilities ended at the EOFY last year. The criteria for these are also quite strict, and the process can be quite lengthy, which may not be ideal if you’re looking to get a facility in place within the next month or two. C: Continue onto fact find (when you return the quote, let the client know that there aren't any government-backed facilities available at this time) |
| “I can’t get funds because I haven’t been trading long enough. I’ll go elsewhere then.” | A: I completely understand you needing these funds currently.
R: However, given we do work with a majority of what’s available on the market, I can confidently say that…
- Banks need a minimum of 2 years trading.
- Most non-bank lenders need at least 12 months of trading
- We have lenders that can do from 6 months.
C: The good news is that once you hit this trading time, we’ll be able to reassess, so I’ve popped in a call back for us to discuss at X time on Y day. |
| “I don’t want to use my home as security.” | A: I completely understand that you would rather not use personal property as security.
R: However, we can only keep a loan unsecured until we hit 100k/150k (depending on the lender) and this is pretty standard across the market. The caveat will only last as long as the loan term, which is relatively short-term. Lenders will only default to looking at the property if you have severely dishonoured your loan (meaning missed several repayments) or the lender has tried several times to get in contact with you without any success. This rarely happens, and lenders will take every step possible—like going on a payment plan, for example—before resorting to consideration of the property. This is just an extra reassurance for the lender, given the loan amount is quite high and this is a cash flow loan. |
Specific objections
Some objections require a more dynamic and nuanced response and may involve educating the client and managing their expectations effectively. Clients may make unrealistic requests in an attempt to secure the best outcome, and it's our responsibility to guide them towards more feasible solutions.
It's important to note that our criteria for evaluating solutions is consistent with the wider loan market. With access to a wide range of options, we can identify the most suitable solutions for our clients based on their unique circumstances.
By handling objections effectively, we can build trust and establish ourselves as valuable partners in our clients' financial journeys. With this in mind, see the other common situational objections below.
Situational objections
Objections specific to asset finance:
| Objection | Response |
| “Why should I use you instead of the dealer finance?” | "At Valiant, we're a one-stop shop. Not only can I assist you with this deal, but also anything else you need in the future. I also pride myself on delivering a high level of service in the long term and will be here to assist you long-term." |
| “The dealer's quote is the same rate but cheaper per month.” | "As your broker, it’s my job to find you the best deal—either here or elsewhere. It’s unusual that the repayments are that different, so it’s probably a good idea to get the exact structure from the dealer to compare apples with apples, as the term, deposit, or balloon could be different. If it’s a better holistic deal, I’m happy to send you away with my stamp of approval." |
| “Why is your fee so high?” | "Our fee is not paid upfront and is factored into your monthly repayments. It gives you access to me as your broker for the long term. and I then take care of anything you need in the future." |
| “Why do I need a deposit?” | "I completely understand how important cash flow is to your business. However, given that you don’t have a property or a reference, the lender is going to need a deposit to get this done without any financials." |
| “The rate is too high. I was expecting something under 6%.” | “As you would have seen in the media, rates have been going up consistently. They move even more aggressively in the asset space due to the fixed nature of our loans. As your broker, it’s my job to get you the best deal. However, given you don’t have a property or current financials, this is the most viable option I have available. As your broker for life, I'm happy to revisit this in a couple of years and see if I can refinance you to a better option a little later.” |
Other common objections require a more nuanced and dynamic response:
| “The bank can provide me with $X, but it’s not enough, as I am looking for more.” | "Fantastic! Well, bank lenders won’t do what we call ‘stacking’ in the industry with other bank lenders. Meaning, they won’t lend alongside other banks. However, we can make up the funds with one of our non-bank lenders, as they'll be more inclined to stack. We can get the approval in place fairly quickly, so you can then proceed with it following the settlement of the bank loan. " |
| “Does this hit my credit file?" OR "I don’t want this to affect my credit.” | "We don’t run any hard credit checks. Essentially, we assess everything else and provide you with a strong indicative quote."
If they continue to object: "We get an idea of what your credit looks like through an Equifax credit report. This is a soft credit check and doesn't affect your credit score. In fact, it’s very similar to the report you have access to for free every 3 months via Equifax. We can provide you with the file, as it is yours. This allows us to ensure we’re sending you to the right lender from the beginning, taking into consideration any credit issues and credit score requirements by lenders." |
| “I can get a credit card for cheaper than this.” | "While I understand a credit card may appear cheaper on the surface, there are usually hidden costs and marginal ongoing maintenance fees that aren’t disclosed upfront, unlike our loan facilities, provided all repayments are made on time. In addition to this, our loans are structured as set principle plus interest repayments meaning by the end of the term, you will have everything paid off. However, a credit card has less certainty, as interest will continue to accrue even if you fall behind on repayments. This means the cost can get very high, very quickly. Overall, a loan will provide you with more certainty and transparency than a credit card." |
