Previously Declined Lending – How We Can Do It
Many of our clients come to us after having been declined elsewhere. We have even had clients referred to us by leading banks such as Natwest, Barclays, Lloyds and Handelsbanken because they have been unable to lend.
Let’s Get One Thing Clear
Just because one lender has said no to you does not mean that every lender will. The main reasons why lenders decline applications have nothing to do with you.
– You weren’t the right investment for them in the first place. The lender either has enough of that type of borrowing already or has made a decision to lend their money in a different sector. There is no one lender that will suit everyone
– Every lender has a different appreciation of risk. What one lender sees as too much risk another will consider to be their bread and butter deal; the lender you (or your last broker) approached was not the right one for you
– Lenders are typically poor at communicating what they want to lend to and what they don’t. This serves to set inaccurate expectations and leaves clients disappointed when they are turned down. It wasn’t you or your proposal that was problematic; it was just interpreted incorrectly to start with
A client who has come to us having been declined elsewhere doesn’t worry us. We can work with you provided you tell us everything, so we can secure you the result you want.
There are always questions that borrowers have after they have been declined somewhere; however, let’s dispel one myth straight away; there are far more options for borrowing than just a high street lender or a payday loan provider. In between those extremes are a myriad of viable alternatives that are only available via authorised intermediaries such as ourselves.
Cost & Options
Borrowing for a commercial purpose is done because there is a tangible benefit to be had, a profit to be made, a cost to be saved. Any decision on borrowing commercially needs to be made with open eyes and an appreciation of everything that comes from borrowing.
There is not a borrower out there who actually wants to borrow. People borrow because they want what the money will bring them. It cannot be just about cost and you need to realise that.
Just because someone has said no to you doesn’t necessarily mean that finance is going to be expensive; however, the cost of finance will be linked to the perceived risk. The rule is that the greater the perception of risk the lender has, the higher the cost will be. Just don’t make a decision on cost alone; remember why you wanted to borrow in the first place. Remember also that not all lenders see risk the same; what one doesn’t like, another will.
To give an idea of how traditional lenders view risk and how our lenders view it, here’s a summary;
How We Achieve Approvals Where Others Don’t
There is no black magic or false promises. The reason why we can often place finance where the borrower or another broker has failed is down to a few key aspects;
Lime Consultancy was not built on good sales- people promising the world. Our background and skill is in credit underwriting. This means that we understand how lenders look at proposals and how they judge risk.
When a lender receives one of our cases they look favourably at it as it will be presented how they want, will be researched and nothing is hidden away. Our summary of what you want to do will be succinct, accurate and will match with what the lender wants to lend for.
Because lenders like working with us we get more flexibility and sometimes better terms than are offered to other brokers
Whenever we get a case that has been declined we profile the case.
This involves taking you through an internal underwriting procedure which brings out the good, the bad and the ugly. We then correlate that with your personal and business situation, any security that may be on offer and your affordability.
We quickly reach a position where we understand your proposal and position better than any broker before and better than the lender. This means fewer lender questions and an easier path to securing the lending you want
Lime Consultancy work with a lot of lenders.
We tier and profile each of our lenders. This means that we’re able to quickly narrow down the lenders that will advance for what you want and will provide you with realistic expectations on cost and terms.
This means that when we apply, your proposal fits the lender’s criteria and we can quickly achieve a positive response. We don’t waste time applying to lenders who would never advance money for your purpose and we don’t apply everywhere. We are specific and aim to do things once and once only.
Let Us Help
If you want help finding a solution, please get in touch. We genuinely do things differently and we don’t charge anything for you to come and find out what is possible. Get in touch and let’s talk.
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