Brokers: how to keep on top of your relationships

By Danny Robinson, commercial director at Grey Matters Specialist Lending Ltd

A typical borrower needing specialist finance does not know that they are ‘special’, or indeed in need of specialist help - therefore the broker is the most important resource available to them.

Specialist lending can be a complicated process. You only need to look at the lack of sourcing systems able to correctly offer products and providers to know it is not always straightforward. It is for this reason that brokers can cement relationships with their clients, and much credit should go to the specialist broker for guiding their client through it all.

Brokers can build upon client relationships by explaining the various nuances that specialist lending has to offer. A development loan can be fast and loose with minimal underwriting with one lender, yet you may have to jump through fiery hoops with another. This in itself can be, and very often is frustrating for any broker, but knowing this and using it to your advantage can be a key factor in helping to build the trust and longevity of any relationship. Not only is it informative but it also demonstrates how difficult it can be to navigate your way through the specialist lending process, and in turn highlights the importance of the need for the use of a specialist broker.

This though is equally true of brokers. Often they may have an enquiry of a specialist nature they simply can’t deal with, but find themselves trying to muddle their way through regardless; in doing so, the likelihood is that they may well lose the deal and ultimately the client. There are many specialist companies in the market today and brokers, like their clients, would do well to make more use of them to avoid losing what they fear of losing in the first place.

It is key that lenders understand that the client relationship is born from a broker’s introduction to the lender and not the other way around. This subtle and often overlooked point is surprisingly important in building relationships with brokers and their clients, not only from the lender’s perspective, but also specialist packagers who receive enquiries from brokers. Passing up their direct, hard-earned and often long-standing relationship with clients is no mean feet and brokers need to feel trusted in doing so. Only this week did I come across a situation whereby one of my very own clients was approached directly by a lender, with a view of dealing with them directly for any future borrowing requirements they may have. This practice is alarming and it cannot be allowed if we are to encourage long-term relationships. To improve client-broker interaction, we need to avoid situations whereby brokers feel the need to try and muddle their way through a deal simply because they do not trust the client relationship to a third party.