Nearly a third (27%) of commercial finance brokers frequently encounter challenges securing funding for clients due to changes in funder policies, a survey from Asset Advantage has found.
A further 56.8% said they encounter these challenges occasionally.
The most significant challenge was stricter underwriting processes, affecting 33.6% of brokers.
Fluctuating interest rates and industry restrictions were noted by 20% of respondents.
Other issues included changes in funder terms, limited funding options, and asset restrictions.
One broker said: “It does appear to be becoming more frequent where there are more challenges being faced with a lenders’ underwriting, where it has become more stringent rather than taking a more commercial view of the overall deal.
“Some of these problems are being faced on just standard flow deals as opposed to more complex transactions.
“It does sometimes make you question whether the lender wants to write any business.”
Another broker said: “Following the Liz Truss premiership, it made the market even tougher with rates bouncing all over and lenders anticipating recession and difficult trading.
“Hardening of appetite was frequent and deals that had previously been done by a lender were now getting declined and this was acknowledged by different lenders.
“On top of this, clients’ expectations lagged behind where the market was in terms of rate, deal structure and security.”
Philip Knight (pictured), credit and risk director at Asset Advantage, said: “Our survey confirms that many brokers continue to face real hurdles as they navigate the market and the changing appetite and policies of funders.
“This restrictive and changeable approach not only makes it much harder for brokers to get deals over the line, but blocks good quality deals that perhaps just need an extra eye or that fall out of the typical scope of a mainstream lender.”
“We work super hard to maintain a consistent approach to our underwriting and present commercially viable conditions of sanction to our introducers.
“Whilst acknowledging that customers are often rate sensitive we like to think that our ability to simply get to deals with where necessary, credible security packages, makes us an attractive lender on any broker’s panel.”
