August 2018
By Jon Salisbury, managing director at Ortus Secured Finance
A business in growth mode suggests something is being done well. It’s no secret that today’s most successful companies share one common theme: world-class client service. Ironic then that it’s the very thing that tends to slip when presented with the opportunity to expand.
For example, a broker may be an expert in development finance and therefore a trusted adviser to their clients in this area. However, what if a client decides to buy a trading pub with a view to seek planning permission at some point in the future? The broker must now place a pub deal, which may be an area they understandably know very little about. Similarly, if a broker’s client refers a friend who happens to be a non-UK resident and who likes to borrow through a complex trust structure, this may be something the broker hasn’t come across before.
Clearly it is an opportunity for the broker to expand their product range, satisfy an existing client and potentially attract new ones in the future. However, it is no good if the broker’s lack of specific experience impacts their ability to deliver a great service.
As a broker, expanding or diversifying your product offering needn’t and shouldn’t mean compromising on the level of service delivered to existing and new clients.
So, what can we as lenders do to offer brokers our support?
We firmly believe that all lenders who rely on broker-introduced business have a responsibility to think of ways they can help brokers develop and grow their business, while – crucially – maintaining an enhanced service proposition. This is not purely for altruistic reasons, of course; naturally, if brokers do well, lenders should also benefit.
At Ortus, we are open about our specialist areas. If a deal or borrowing entity is complex, or if the underlying asset is commercial (particularly in the leisure sector) we can get involved at the outset – potentially before the broker has even won the deal.
We can provide guidance on the right questions to ask, things to look out for, resources to use and so on. This applies even if the deal isn’t the right fit for us – for example, if instead it qualifies for high street lending. If our input helps the broker build their business, then we feel it will benefit us too in the long run.
We often find ourselves having an internal debate as to the trickiest stage of the lending process. Is it the underwriting, valuation coordination, or perhaps getting the legal documentation in order?
But one area in which we do achieve consensus is the challenge facing brokers of finding clients in the first place. This is something we, as a lender, rarely have to do and as a business we have a huge respect for the role brokers play in our industry.
It’s vital in the broker/lender relationship that lenders remember that finding and keeping clients is the hardest job of all, and brokers need and deserve support from their lending partners. If we can deliver this, there is no reason why a broker cannot expand their product range while maintaining the highest levels of service.