Breaking Barriers and Adding Value….standard practice for a Broker
To say we have seen a dramatic change in the Lending environment over the last six years doesn’t quite do it justice. Banks have become far more risk adverse creatures and in line with recommendations from the FSA/FCA have restructured their lending teams and policies to meet the ever-changing requirements, including readdressing their capital adequacies.
Through ensuring that these requirements are met, there appears to be more and more obstacles to overcome in each and every deal, from submitting an application through to achieving Credit Sanction, all the way through to completion. As a result of this we have all borne witness to the increase in the time it takes across all lenders from receiving an initial enquiry to the resulting drawdown and as a result have seen the growth of the short-term funder and bridging market.
As a broker it is our job to fully understand what these obstacles are, and just as importantly, how to overcome these to best achieve our client’s aims. So the first question is, how do we do this?
At Omega we have a strong working relationship with lenders across the whole of the Market and work closely with lenders to ensure that at all times we fully understand their methods, policy and people. We pride ourselves on maintaining a comprehensive knowledge of each lender’s offering, where their appetite sits, the client profile each are happy to build a relationship with and the business types which they have scope to support. We need to understand all of their processes, not just to sanction but through to completion, how best to work with them and just as importantly, when an alternative lender may be better placed to handle a particular enquiry. You often hear that this is a people orientated industry, and understanding not just the institution but the people with which you work is as important as ever.
As part of fully understanding how the Bank works, we are able to overcome these ‘obstacles’ and as a result work hand in hand with each lender to deliver a comprehensive and thorough service to our clients. It’s about working with the Bank to meet their requirements but deliver to our clients as promptly as possible, as I do not see any of these ‘obstacles’ being removed anytime soon. In fact as we take stock of 2013 to date, I’ve heard a lot of people suggest that it could be getting easier, and that some of the impediments to lending could be removed over time. Conversely, I believe that we’re only likely to see further barriers emerge in the Commercial Market therefore underlining the importance of that discussed above.
Through achieving this, as a company Omega are ‘adding value’ to each and every deal we see. As many other Brokers will testify, Fees are often the subject of hot debate and by ensuring that we deliver the terms we set out to, in the time frame required, we are able to open up that relationship between Barclays and the client and fully justify our role in the transaction and with it, deliver a service warranting the fees incurred.
So how do we ensure we ‘add value’ in each and every case? Well firstly as touched upon by realising the client’s real requirements, and then secondly by ensuring that we understand the Bank, their appetite and then delivering not just any terms but the right terms for that client.
I was approached earlier this year where the client outlined their desire to undertake a four-phased investment and development programme. This was followed by a list of lenders whom they had already approached and had been declined by, including the one lender I believe to be the right home for that client. By understanding the Bank’s real desire to lend, I was able to revert to a Lender already approached and present the proposal in a way which would allow them to support the initial transaction, with scope to develop the relationship in due course. I understood that they wouldn’t want to commit to support the entire program at the outset but by building confidence in the client’s ability and with it a track record, they would be happy to do so on a phased basis.
By ensuring that we work closely with lenders across the market, Omega have enjoyed a successful year to date and look forward to continuing our growth over the remainder of 2013, including our Broker team.
Whilst many obstacles remain, through ensuring that we stay aware of any changes in Banks’ policy or practices, and by working closely with their people to break through the barriers that we all face, we will maintain a relationship which delivers a prompt and comprehensive service to our customers with access to finance and a commercial relationship.
