Brokers call for ‘outside the box’ approach from funders

Commercial finance brokers have set out their wish list for funders, with an “outside the box” approach to deals among the top of their demands.

In the latest survey by Asset Advantage, a third of commercial brokers said they want funders to be more open-minded on deals, considering the full picture of the business or the full story behind the deal. More than one-in-ten brokers want funders to offer more flexible loan terms, while 13% are looking for a higher credit appetite.

For 16% of brokers, greater transparency on lending criteria was a key area for improvement among funders.

One broker said: “The main thing we struggle with is consistency of credit decision. I think that more transparent underwriting criteria would help us provide proposals which get an approval and improve the experience for everybody.”

The findings are revealed in the latest survey from Asset Advantage, an independent provider of business finance for SMEs. The survey questions commercial brokers on a range of topics to determine the current state of the commercial finance market and its changing demands. The aim is to uncover the key challenges facing commercial brokers when securing funding, as well as their thoughts on lender appetite and the lending landscape.

Demand for an “outside the box” approach from lenders has been a common thread throughout the survey, with many brokers looking for greater storybook lending. This is where a lenders’ underwriting team will take a closer look at the business behind the proposal, interpreting complex accounts and looking beyond headline figures to provide funding.

Philip Knight, credit and risk director at Asset Advantage, said: “A different credit appetite is different to a proposal appetite.

“I don’t subscribe to the former, but the latter is something that makes brokers highly relevant in the B2B lending ecosystem and moreover where niche lenders like Asset Advantage can be the lender of choice, rather than as a last resort.

“I think having a boutique lender, which offers you direct access to the underwriting decision makers, in your panel is extremely important for introducers as this is where they can demonstrate added value.”