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Financial Consultants, Loan Modification, & Student Loans

Are you a financial consultant struggling to get a fair deal on a merchant account – or even to be accepted? LOLA POS can help. Read on for our expert view on the challenges you face and then get in touch for more information about how we reduce your risks and costs.

Industry Outlook

Despite the headline-grabbing popularity of robo-advisory solutions, the demand for financial advice remains strong. And with just 1% of Americans currently using a financial advisor, there’s tremendous room for this segment to grow.

High net-worth customers will always need help with their finances – in 2019, American had 18.6 million millionaires, an increase of more than half a million from the year before, and this segment is likely to continue growing.

But beyond the high-net-worth segment, more Americans are becoming interested in safeguarding their financial future, and others need help due to the challenges created by the coronavirus as well. There are many types of financial counseling that are popular at all levels of income.

Credit Card Processing for Personal Financial Consultant Services

Many people of all wealth levels can benefit from an advisor. Awareness is growing that fee-based providers can provide more objective and valuable guidance, and are therefore often preferable to advisors who earn their income from commissions on the financial products they sell. If you’re a fee-based advisor and are looking to accept credit cards, you may see challenges with your bank.

The long-lasting nature of consultant-client relationships means that the risk of ‘friendly fraud’ – when a customer attempts to get a chargeback for a legitimate payment – is very low.

However, the large volume of money being handled and the fact that the industry is a known target for fraud and identity theft makes it a high risk for banks and credit card processors. Because of this, a financial consultant often either struggles to get approved for a merchant account or ends up paying expensive fees to get one.

Credit Card Processing for Student Loans and Grants

Some advisors specialize in helping families find solutions for their student debt. Whether it’s refinancing an existing loan or sourcing funds for the upcoming school year, many families need help finding good options. Because this is an area that is prone to fraud and misrepresentation, such as altering students’ documentation to improve their chances of obtaining a loan, this area is often considered high-risk by banks. If you’re in the student loan advisory business, you need a great partner like LOLA POS to help you find the right processing solution.

Credit Card Processing for Loan Modification

Even in the best of times, families sometimes need help restructuring their debts. With COVID creating unprecedented disruptions in the job market, this need is even greater today. Ethical and effective debt relief counselors and advisors can have a life-changing benefit for families in need, helping them get control of their monthly cash flow and prevent bankruptcy or other financial calamities. Of course with today’s greater need comes a greater risk of unscrupulous individuals taking advantage of stressed borrowers, and due to “reputational risk” some banks simply won’t touch this type of business. At LOLA POS we specialize in providing merchant accounts for hard-to-place businesses like this, and we’re here to help you collect revenues while you help borrowers get their finances back on track.

How to Reduce Your Risk

Financial advisors can substantially reduce their risk through the use of best practice, including:

  • Documenting all transactions and communications from the customer.
  • Communicating with the customer regularly to ensure that all decisions made on their behalf reflect their requirements.
  • Diligently following Know Your Customer (KYC) & Anti-Money-Laundering (AML) procedures.

Additionally, financial advisors should work with a payment processor who can understand their business and industry and work with them to reduce their risk.

How LOLA POS Can Help You Manage Your Risk

Unlike a typical bank, we can help seemingly high-risk companies to manage their risk effectively through a combination of careful underwriting, relationship building, and ongoing monitoring. By taking care of the small details, we turn ‘high risk’ accounts into ‘managed risk’.

Together, our payment processing solutions and global network of strategic partnerships enable you to save money, reduce risk, and help you get funds deposited safer and quicker than with other competing solutions.

Start here to learn more about our expertise in providing high-risk merchant services for financial consultants. We Work For You®.

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