2016 was certainly an eventful 12 months to say the least with plenty of political, regulatory and economic issues and events impacting on both our work as advisers and that of our clients. If we wanted to sum it up then perhaps, ‘expect the unexpected’ would have done it.
It’s interesting how the mind-set can change once we hit a new year though. It certainly feels very different to that pre-Christmas period where many people are winding down, and yet in our world – particularly bridging and development finance – there can be a greater sense of urgency as a year comes to an end, which doesn’t always feel the same when you come back.
Certainly, we dealt with many advisers in December who were able to bring us completable cases which translated into much welcomed pre-holiday income for them. That’s especially the case in the bridging finance sector where a fast turnaround really is the name of the game and we were able to therefore put a Christmas spring in the step of the adviser and the client, arranging the right finance at the right price.
Now that the year stretches out before us, it might be the case that you don’t necessarily see cases in such an ‘urgent’ manner, but I would warrant that you’re clients might feel otherwise. Certainly, coming back from a holiday break there will be cases which require, for instance, a short turn-around time, and there is much to be said for an adviser who can achieve this for their clients. In essence, those who know exactly what is achievable in the bridging sector - and which lenders are willing, and able, to make that completion happen - are always going to be in demand.
Now, if you’re a non-bridging specialist, you might think this does not pertain to you at all, but again (with the right partnerships) this can certainly be within your advisory kitbag. The point is not to over-reach or attempt the ‘impossible’. You’re much less likely to be completing within the client’s anticipated timescale if you’re ringing around all bridging lenders in order to ascertain who might be willing to look at the case. It may seem like it fits within a specific lender’s criteria however does it really?
A few days sat on the phone to all and sundry could lead to disappointing the client – time will have slipped away from you and, don’t forget, the more lenders who turn it down the less chance any of them will take it. Especially if you only come to the one accommodating lender right at the end of your contacts, and they already have wind that it’s a deal doing the rounds and one that’s been rejected by others. In this line of work it’s highly important to pick the right lender first time, and you’re able to do so if you have the specialist knowledge and the relationships to match.
So, despite it seeming like you have ‘plenty of time’, clients might think otherwise and you therefore have to prioritise. Sort out those deals which could need a bridging finance solution and sort them out fast. Then, quickly ascertain whether you’re in the right position to be pushing this deal forward to lenders, or if you have a much better chance of securing that completion via a specialist operator who knows the market and can find the right lender with the right product straight away.
The benefits of the latter approach should be obvious but if you needed a new year incentive then consider the fact that, with First 4 Bridging, for example, you would keep the entire broker fee and your procuration fee from the lender. By placing business with us you would secure the same level of income. Plus, think of the benefits for the client who will be benefiting from a fully packaged deal through a trusted distributor, and at present it’s possible to secure some highly competitive rates. Completing now means the client accesses this type of deal, whereas leave them until later and we may find a slightly different environment in terms of competition and product pricing.
As always, regardless of the time of year, it’s always the right time to complete a bridging deal. You just need the right client/case, and be able to choose the right partner to get you there. Once done it should certainly be a great way to kick-off the new year, and a strong foundation onto which you can build future completions and develop better relationships, with greater income levels. And by doing this you’ll ensure no holiday hangover – for your business at least.
