Peter Arnold (pictured above), director at GAP Business Loans, offers crucial advice for brokers aiming to achieve more favourable outcomes with lenders.
He outlined five best practices that can distinguish successful brokers from the rest.
"Every lender has different criteria around who they’ll lend to, what security they’ll accept, how they’ll assess income and expenses, and more,” Arnold said.
Understanding these criteria is essential for choosing the right lender for your client and presenting their deal effectively.
Arnold stressed the importance of knowing the lender’s process for assessing borrowers.
“It’s like the difference between closing your eyes and aiming at a dart board or walking up to the board and placing your dart directly in the bullseye,” he said.
A deep understanding allows brokers to package deals with confidence.
Best practice #3: Be across the deal
“To assess risk, lenders need to understand who the borrower is, what they’re trying to achieve, and what security they’re offering,” Arnold said.
As a broker, being fully informed about all aspects of the deal is crucial for effectively responding to lender inquiries.
Arnold highlighted a common pitfall: omission of key information due to brokers’ heavy workloads.
He advised ensuring that all relevant data is presented to lenders to avoid delays.
Delivering all necessary documents in a single batch is vital for a smooth credit process.
“If documents are drip-fed, the credit process is slowed, impacting settlement timing for the borrower,” Arnold said.
We'd love to hear your thoughts and experiences with these strategies. Do you have any additional tips or feedback?
