In a survey conducted by Asset Advantage, commercial finance brokers have expressed their desire for funders to adopt an “outside the box” approach to deals.
A third of respondents indicated that they want lenders to evaluate the full picture of a business rather than relying solely on headline figures.
More than 10% of brokers requested more flexible loan terms, while 13% sought a higher credit appetite.
For 16% of respondents, greater transparency regarding lending criteria was the main area needing improvement.
One broker said: “The main thing we struggle with is consistency of credit decision. I think that more transparent underwriting criteria would help us provide proposals which get an approval and improve the experience for everybody.”
The survey aimed to assess the current state of the commercial finance market, uncovering challenges brokers face in securing funding and understanding lender appetite.
The demand for a more creative approach to lending, focusing on the business story behind proposals, was a common theme.
Philip Knight (pictured), credit and risk director at Asset Advantage, said: “A different credit appetite is different to a proposal appetite.
“I don’t subscribe to the former, but the latter is something that makes brokers highly relevant in the B2B lending ecosystem and moreover where niche lenders like Asset Advantage can be the lender of choice, rather than as a last resort.”
“I think having a boutique lender, which offers you direct access to the underwriting decision makers, in your panel is extremely important for introducers as this is where they can demonstrate added value.”
