16 October, 2015
Loan Introducer speaks to Marc Biddle, commercial lending manager, Promise Solutions
What are the common themes in the type of enquiries you receive from introducing brokers?
Enquiries can vary from commercial Investment, owner occupied premises, semi-commercial, development funding, and bridging and auction finance. The most common theme is that brokers have little knowledge of the sector and want to hand the entire matter to an expert. This suits us entirely and we can bring our specialist products together, including first and second charges, to find a solution.
Are there areas of commercial finance where introducing brokers may be missing opportunities?
Brokers are familiar with the concept of commercial and development mortgages or loans. They are less aware of some of the enabling products which can be used in the own right or to make up any short fall in the overall lending requirements. These include invoice factoring, asset finance, unsecured business finance and possibly second charge bridging facilities which are all fantastic resources available to their clients.
What are the barriers for brokers getting involved and how can they overcome them?
Brokers generally don’t want or need to get involved but it is important they have an awareness that certain products exist so they can go to an expert should the need arise. At Promise we try to promote a variety of products and it is the job of our underwriters to ask questions which may uncover alternative funding solutions brokers can use when required. Brokers who don’t have an open mind to alternative funding opportunities run the risk that their clients go elsewhere so perhaps the biggest barrier is changing the mindset.
Is there a market for complex commercial enquiries?
Today’s commercial market is very diverse. The more complex and challenging cases are starting to appear on a frequent basis but due to our varied panel of lenders we tend to find that we are able to produce terms on the majority of enquires. That said we are constantly working with our existing panel and new lenders to learn about new products and solutions to our brokers queries.
What message would you give to brokers who have not referred or explored commercial finance?
Brokers should form a relationship with a trusted commercial expert which can also cover second charge loans and residential products. A whole market solutions provider and someone they can speak to easily. Just increasing their fact find to include any commercial property or business interests will create opportunities they can act on. From it then it can be a quick chat and a simple referral.