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Commercial Finance Introducer Commercial Finance Introducer
Facing
the
challenge
As regular readers of the commercial finance
pages of Mortgage Introducer are aware,
commercial finance doesn’t start and finish
with a commercial mortgage. Times are tough
for leasing brokers so Adam Tyler, chief executive of
the NACFB, looks at the threats facing this market –
and how the Association plans to help
t the beginning of the year, Less lessors to be had by any funder brave enough to
A
the Association arranged to As with the commercial mortgage market, take it.
talk with its leasing broker many lessors have closed their doors to broker
members about the challenges business. Some have closed their doors Pump up the volume?
which faced them. The altogether. But unlike the commercial mortgage Some lessors have restricted the number of
challenges in the commercial market, it is actually prime funders who are brokers they will deal with as they have only
mortgage market are well very thin on the ground so it’s the good quality limited funds to lend and they have designated
documented, but different sectors of the deals brokers are struggling to find a home for. broker business as a higher risk. But brokers
market are facing very different problems. It The result of this is that prime deals are had an issue with the methodology employed
is essential to understand these unique issues being placed with sub-prime funders (also by funders when ‘culling’ brokers. Lessors often
in order to offer this sector of the market a called tier two funders) with the associated claim that they have reduced the number of
voice. So what are the issues facing the higher costs for the client. Some brokers have introducers they will take business from due to
leasing broker? During the round table reported that one or two sub-prime funders are a ‘flight to quality’, but many assess your
meetings held by the Association at the trying to step up to fill the gap and become ‘quality’ as a broker based on the quantity of
beginning of this year, the same topics were pseudo prime funders. There is a huge business you introduce. But if a broker is
raised again and again. opportunity here: there is good quality business contracted to introduce large volumes of
July/August 2009 Mortgage Introducer www.mortgageintroducer.com
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