Majority of brokers’ biggest frustration is lenders changing their mind on a deal
Over half (56%) of brokers said the lenders changing their mind on a deal frustrates them the most about the specialist finance market, LendInvest found from surveying brokers at the NACFB Commercial Finance Expo in Birmingham.
A quarter (24%) identified the lack of good service as their main frustration. Rates not being good enough was an issue for 14% of those surveyed, while only 6% of those surveyed cited lack of choice as their biggest frustration.
Matthew Tooth, chief commercial officer at LendInvest, said: “At LendInvest we are regularly approached by brokers who began their case with another lender but became so frustrated with the process or decision making that they are now looking to switch to another lender.
“This is why we take steps to prevent our brokers and borrowers facing the same frustration.
“Ensuring the line of communication between the broker and our underwriting, sales and credit teams remains strong, even during the primary stages of the deal, is key in preventing disappointments for a borrower.
“Sometimes changes in circumstance cannot be helped; however, taking the time to properly review a case and stick to the decision in principle benefits all parties involved in the long run.”
Kim McGinley, director at Vibe Finance, has worked on both the side of a lender, and now as an intermediary having completed multiple cases with LendInvest to date.
McGinley said: “When a lender commits to a case upfront and then changes its mind as the deal progresses it can be down to a variety of reasons; underwriting and the credit team that sign off the case are not on the same page, or the lender may simply move the goalposts.
“For a broker this can mean make or break when representing a client.
“Transparency is required now more than ever. Although a lender’s appetite can change, as a broker we need to be able to assure the client that once a decision in principle is issued, subject to the information the lender requires, that they are there to lend and not put obstacles in the way.”