Brokers gave key factors which they consider when selecting a lender.
Brokers value service as much as rate according to NACFB’s latest broker survey.
An NACFB broker’s most common reason for selecting a lender in 2019 was that they offered the lowest rate for their client (37%).
Other key factors included the certainty of funding (18%), previous positive experiences (16%), best fit for client (11%), speed of initial decision (6%), speed of completion (6%) and ease of application submission (3%).
Graham Toy, chief executive of the NACFB, said: “The renewed certainty, clarity and clout with which we can engage with our stakeholders, means that in 2020, when the NACFB starts a conversation, others will sit-up and listen.
“The association will utilise this data throughout the year when engaging with key policy, regulatory and industry stakeholders.”
According to NACFB brokers, the most common reasons lenders turned away deals in 2019 were a client’s poor credit history (28%) and the sector being deemed too risky (25%).
This was followed by an SME lacking enough collateral (17%), the lack of strong cashflow (11%) and the amount requested being too high (10%).
The regulatory change most NACFB brokers would like to see in 2020 is the simplification of the compliance process (65%).
Some 9%of brokers would like to see more regulatory protection this year, whilst16%of NACFB members wish to see greater clarity of where the FCA’s perimeter lies.
The most popular locations for SME clients in 2019 were inLondonand theSouth-East.
This did vary by finance sector; with the most popular location for leasing and asset being theSouth-Westand trade finance clients being most popular in theWest Midlands.
NACFB brokers introduced at least217,903deals to lenders in 2019.
The average value of each deal introduced by development brokers in 2019 was£1,570,774across an average number of58deals per brokerage.
The average value of a short-term or bridging loan was£544,318across95deals per brokerage.
Commercial mortgage brokers saw an average of£516,029across119deals per brokerage.
Buy-to-let brokers held£355,599across132deals.
The average value of each deal in the leasing and asset space was£51,091.
The majority of NACFB brokers received their business from direct enquiries (45%) in 2019.
Other popular sources of lead generation for brokers were professional services like lawyers, accountants and estate agents (19%) as well as referrals from other brokers (11%).
