In an article produced for Financial Reporter, we discuss the benefits of brokers using packagers and distributors.
For brokers, the role of a packager and distributor is to help you place your difficult cases and give you access to products, criteria and lenders who are not widely available elsewhere or who you may not be familiar with.
Naturally, this offers brokers a great advantage when they are approached by a client, who is looking to obtain funding for their specific project which perhaps does not fall within straightforward lending parameters.
Good packagers and distributors will have access to an extensive panel of lenders, who can instantly source the most appropriate solution for your client. In the world of bridging finance, where often a borrower is looking to secure funding extremely quickly, it is essential as a broker that you can find an option which will deliver what your client is looking for within their specific timeframe.
Having access to a reliable packager and/or distributor will enable you to find the most suitable solution which may mean low rates, high loan to value, willingness to lend on an unusual property together with the most flexible underwriting. Owing to packagers and distributors having an established relationship with the industries top lenders, as a broker, you can also have confidence that the deal will be delivered quickly and efficiently.
While bridging finance is becoming an increasingly popular option, it is still very much a very specialist finance facility, which requires a broker to have a full understanding of what is involved. Packagers and distributors will provide you with the answers and help guide you through the process, minimising any hassle from obtaining the best possible deal for your client. They should explain the process clearly, what is expected of the client and the timescales involved. The process at times can be quite daunting, however packagers and distributors have the expertise and knowledge to help a broker to handle the most challenging of situations.
Working with packagers and distributors also enables a broker to focus on their core business while creating additional income streams. This can be achieved without all of the work involved but where they are often remunerated at the same level they would be using a lender directly. In addition, due to the volume of deals packagers and distributors handle, they have significant experience and are familiar with lender’s various requirements.
At Hope Capital, we work with several of the industry’s best packagers and distributors, who understand the need for an established, flexible and transparent bridging finance lender. Our priority is to create unique and innovative products which meet the needs of individual borrowers and their specific projects. It is therefore a huge benefit to work with packagers and/or distributors who help us raise awareness of these solutions to intermediary partners and provide an insight into the various borrowing options available via them.
Ultimately, packagers and distributors play an important and integral part in today’s intermediary market, providing benefits to both brokers and lenders.
In addition to providing access to a multitude of lenders under one roof, they also provide in-house underwriting and online processing facilities, plus efficient and cost-effective legal and survey services. The packaging and distributing community includes some of the most experienced practitioners in the market. They offer brokers support and products that suit their customers’ financial circumstances exactly.