Home > Uncategorized > Banks to “refer leads”

Banks to “refer leads”

Under new legislation the major banks are to be compelled to refer rejected loan applications to “independent lenders”. Now there is going to be a element of ‘he would say that wouldn’t he’ about the following but I think this is a very dim witted approach

Naturally the so called independents will be the lenders with the closest ties to the banks in question. And some ties are very close indeed. They key here of course is that they will not be searching the market for the best possible deal.

If this applies to invoice finance then we are talking about 40 plus active independents in the market. Will the bank search through all these lenders finding not just the best price but facility and service?

I dont think so

If they sling the lead at one independent there is a one in forty chance that will be the best available facility in the market.

Correction. There is virtually no chance if the independent lender knows that they are the only player

The solution? Well clearly the leads should be passed to decent brokers. But of course ‘i would say that wouldn’t I?’

 

 

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