March 2018
By Miranda Khadr, founder of The Business and Commercial Finance Club
Writing an article on getting the best deal for clients while earning a living should have a very obvious answer. In fact, one could argue that doing anything but seeking the best solution for a client would be falling below the required standards of the service we need to, and are expected to, provide borrowers - but is it always that easy? I think the answer to this is no.
The first hurdle is finding out what ‘best’ actually means for a client. This requires an in-depth look at the client’s current situation, aims and objectives, while understanding what they are trying to achieve - otherwise, as we put it, what their ideal solution would be. The more thorough the fact-finding process is, the more informed the adviser becomes. Then, as we all try and do, the aim is always to match their requirements as closely as possible with the solutions we provide. In some cases, certainty and reliability will be as important as pricing and cost, and in other situations pricing and cost savings may be the lead motive on achieving an acceptable client solution.
As brokers and intermediaries, we all understand that every enquiry differs and there is no standard case in the industry. Sourcing and structuring the best deal possible for our clients is a time-intensive process, especially when there are so many variables with regards to lender criteria. Advisers who add value to their clients’ objectives do so by analysing new products offered, rate changes, up-and-coming challenger funders - this is a second job which people often do not see or recognise.
To ensure the industry is a viable one, from an adviser’s perspective, we have to adapt. This is where greater AI technology and investment is required, so that brokers can have effective sourcing systems that are more successful and accurate. Hopefully, over time, strides in this area will lead to less manual work for brokers, allowing advisers more time for client acquisition and servicing. Let’s watch this space and see if the technology catches up with our needs, as well as those of our clients, helping us to always source the best solutions in the most time-efficient manner.
In a world of greater competition among brokers, finding the best deal by understanding a client’s needs well should allow you to not only win the business but also maintain a long-lasting relationship. In-depth research into the marketplace and what’s on offer will allow a broker to maintain a competitive edge and achieve the outcome a client is looking for. If brokers consistently meet new lenders, as well as following up with existing relationships and new product offerings, this should allow you to stay one step ahead. It also boosts your confidence in the fact that you are genuinely providing the best deal for your borrowers.
However, finding the most efficient product in the marketplace is one thing; I believe a successful broker will always question each aspect of the transaction. It is this synergy, market education and innovation that puts a brokerage ahead of its competitors.