It’s not just about how much you are charged for something, but also a lot to do with service and the overall experience delivered by any business, no matter what the industry sector.
I say this not actually with bridging finance in mind, but off the back of having spent most of my evening since I got in from work, on hold to an overseas call-centre, for about the 10th time in the last couple of weeks. The problem, once again was, a lack of wireless internet connection at home. After holding in a queue for about 20 minutes, on my first attempt at accessing ‘customer services’ (in Delhi), I was connected to an operator and then promptly cut-off before I could even say my name. I redialled and I was placed back in to the same queue and left waiting for a good half an hour this time. Eventually my call was answered by someone reading from a script, with apparently no technical knowledge whatsoever. After failing to be able to tell me why I still had no internet service, the lady at the end of the phone advised that the best (and only) solution for me, was an ‘engineer’ to visit my property. I wouldn’t have minded so much, apart from the fact that an engineer had called at my property this mor
ning and it was most likely as a result of his incompetence that I now found myself back on the phone again.
Apart from the obvious therapeutic value for me in writing all this down, my point is this:
The thing that most of us consider first when making a purchasing decision is the price. We all want the cheapest, as nobody wants to spend more than they have to. Interest rate is important, but it is not the only factor that should be considered.
It was price and supposed ‘value for money’ that first drew me to my current ISP, which I am now experiencing problems with. Do I wish I had considered other factors when considering who to provide my internet service? You bet I do! Would I have paid slightly more for a better, more reliable service? Most definitely! Therefore, should my initial decision have been based on price alone? Definitely not.
The same is true for when considering any kind of finance, short-term or otherwise.
Yes, the fees and rates are a very important factor, but cheap is not always best. Given the choice, most clients, I am sure, would rather pay a little extra for the peace of mind of knowing that the lender they are dealing with is fair, ethical, reliable and not promising something they are incapable of delivering.
I spoke to a client just today who had taken a bridging loan from a lender who had promised to make funds available within 20 days, when it took 42 days to complete the deal and not because of valuation or legal issues, but because the funder did not have access to the funds when promised and they had to delay the client’s completion whilst ‘internal issues’ were sorted.
Whether a deal is regulated or not, establishing the borrower’s requirements and fully understanding why the finance is needed, is key, as is establishing a viable and realistic exit-strategy.
With more lenders in the bridging space than ever before, more competition and the lowest rates the sector has ever experienced, there has never been a more important time to consider all of the factors that are important to your client. Word of mouth, personal referrals and recommendations also count for a lot in this sector, so speak to someone in the know and make an informed decision.
Over and out, until next time.
(P.S. I still don’t have any internet at home).
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