More than half of brokers actively seeking lenders with robust funding sources
53% of brokers responding to United Trust Bank’s most recent Broker Sentiment poll have said that the stability of a lender and the surety of funding are now more important to them when placing cases. A further 20% indicated that although it wasn’t something they necessarily considered before, they would be factoring it into their decision making in future.
Are factors such as the stability of a lender and the surety of their funding now more important to you when placing cases?
|Yes – I am deliberately seeking to place cases with lenders which I know have robust sources of funding||53%|
|No – It’s not something I worry about||24%|
|I hadn’t before but it will be something I factor in going forward||20%|
The survey of 128 brokers from the fields of property and asset finance also revealed that more than 4 out of 5 had experienced working in difficult and challenging markets before, including through the ‘Credit Crunch’. 14% of brokers had not, having joined the industry within the last 5 years.
Have you experienced working through challenging market conditions before? For example, through the ‘Credit Crunch’?
|Yes – several times, including through the Credit Crunch||58%|
|Yes – through the Credit Crunch||28%|
|No – I came into the industry in the last 5 years||14%|
Harley Kagan, Group Managing Director – United Trust Bank, commented:
“When a broker recommends a lender to their client, they are entrusting that lender to deliver the funding as agreed and on time. However, they are also entrusting the lender with their professional reputation. If the lender fails to deliver it will first and foremost reflect badly on the lender of course but it’s almost inevitable that the broker’s judgement and guidance will also be called into question. It’s imperative for most brokers therefore that when surrounded by uncertainty, they must have 100% confidence in their lender partners not to let them down.
“It is interesting to see, that the proportion of brokers who now, or in the future, will put greater store on lender dependability when placing cases is similar to the proportion who have experience of operating in challenging markets, such as the conditions brokers contended with during the last global financial crisis. That’s not to say that brokers relatively new to the industry haven’t had to deal with once reliable lenders disappearing almost overnight. You don’t have to look back further than a few months to see occurrences of lenders withdrawing from sectors at short notice and for those brokers who have invested time and effort in building relationships with those lenders, embedding processes and learning systems, it can seriously disrupt their businesses if that funding is suddenly no longer available.
“UTB’s heritage dates back over 60 years and the management team have decades of collective experience of lending through unpredictable times. The Bank grew throughout the Credit Crunch and has done so every year since and we have no intention of breaking that trend whatever Brexit or any other uncertainty may bring.”