With the significant changes to how responsible lending is tested by the lenders, the burden of being sensible in the way perceived risk is mitigated is now put on the borrowers and/or their appointed brokers.
The lead questions on the online platforms such as ebroker highlights the primary risk assessments as it tries to match Credit scenario to Credit Providers and qualify the opportunity.
Even responses to a simple question such as “when do you need the funds by?” could have risk implication.
Business owners can’t be sloppy anymore with their finance applications. Credit enquiries are recorded and who they borrowed the funds from can be a red flag.
Our recommendation is that any finance application should not be rushed, but rather, be well prepared with the goal to achieve the best results in pricing.
This would require having up to date business financials, including aged debtors and creditors listings, and a business summary, which should include commentary on a second way out for the Lender.
A drill down on the risk aspect is the best way to negotiate for better pricing.
Traditional brokering in the SME space is no longer about sending in an application and hoping for approval.
In today’s market brokering is about presenting the loan proposal with well-documented credit risk mitigation and credit assessment attended by the broker so the right Lender or funder is selected.
Hence, approval is secured in a timely manner with the least footprint of credit reporting.
At Winquote we take this one step further. We will not just find you the most appropriate solution for you current funding requirement but have a strategy to exist over time to the lowest funding costs and introduce you, the client, to bankers that understand your business.
If you would like us to review your finance options and assist to secure funding to grow your business then please call us on 1300 971 308 or email firstname.lastname@example.org