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Commercial Finance Introducer
27
Keep your eye
on the ball
According to the old saying, “Desperate times
call for desperate measures.” But losing sight
of best business practice, especially TCF will do
more harm than good, says Adam Tyler, chief
executive of the NACFB
hanks to the current economic Association’s membership now represents the there were funding alternatives. Some recent
T
climate, the commercial broker core of pure, professional commercial finance cases of unscrupulous fraudsters have well and
sector is facing one of the brokers. And their professionalism is needed truly exposed how vulnerable some clients are
biggest challenges of its now more than ever. The combination of the and, at the same time, how valuable an
existence. That’s not to say it’s current difficult economic conditions and experienced and trusted broker is. Many good
not up to the challenge; brokers their knock on effects: the resurgence of businesses rely on a trusted broker in both
are resilient and have been advanced fee fraud for example; means that good and difficult times.
working hard to survive. But there is no it’s more important than ever to keep But because of the few ‘bad guys’ in the
doubt that constitution of broker standards high. Although times are tough, industry, and the far from exemplary image of
membership of the Association has changed brokers must not be lulled by offers of high the finance sector as a whole (the average
over the last 18 months. A raft of new commission – the needs of the customer are consumer being largely unable to distinguish
brokers joined the Association when the paramount. between different sectors of the industry; as
mortgage market originally contracted and far as they are concerned there is little
‘diversification’ was the way forward. TCF difference between the ‘fat cat’ bankers or the
Unfortunately for many of these brokers, The principles of TCF – Treating Customers intermediary who sells their products)
commercial mortgages proved to be less easy Fairly – are arguably more important now sensitivities are running high. This can be seen
to write than had been promised in many than they were when the credit markets were in the knee-jerk calls for buy-to-let regulation,
cases and, after twelve months, their freer. The constrictions in the market lead to a or in funders in other sectors of the
experiments came to an end. lack of available alternatives for SMEs and this commercial market pulling back from the
I have referred to these brokers “washing in, lack of options makes an SME more reliant on broker market altogether. And because of this,
then washing out” of the Association’s the advice and services of their broker than it is even more important that the commercial
membership like a tide, and I believe the perhaps they would be in a market where broker’s house is kept scrupulously clean; that
www.mortgageintroducer.com November 2009 Mortgage Introducer
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