The full circle broker

It's that time of year again at Lancashire Mortgage Corporation - annual appraisals! A time when every meeting room, training room and store cupboard is booked with managers busy beavering away...

Section: Features

It’s that time of year again at Lancashire Mortgage Corporation - annual appraisals! A time when every meeting room, training room and store cupboard is booked with managers busy beavering away reviewing the performance of their team members over the past 12 months. With over 350 staff now at the company I think our wonderful new HQ is up to the task. 

The sales team is no stranger to these annual reviews and this year is no exception. One of these review techniques is called “360° Feedback”. This is basically an independent and anonymous feedback session from a number of colleagues, who review the individual’s interaction with them over the past 12 months. This is based on 3 core areas. 

The first of these areas is the “Start”; which behaviours would you like the subject to start practising more often; the second area is the “Continue”; which areas would you like the subject to continue practicing. The dreaded final section is “Stop” the behaviours which you would like that individual to stop practicing. 

360° plays a huge part in many of our intermediary partners businesses today. Before the financial crisis of 2007 there were many financial intermediaries who concentrated on only one aspect of the financial lending markets, whether that were mortgages, commercial finance, secured loans, short term funding, buy-to-let mortgages and even some companies only operated in one aspect of each of these financial sectors such as only “sub-prime”, mortgages or “high-street” commercial finance. 

Due to the nature of the funding which was readily available pre-2007, this was certainly a position which brokers could find them in and could certainly have a thriving and successful business. Since 2007 there has been real serge in the 360° broker, considering all aspects of lending markets has given financial intermediaries new vigour and new direction and one which when the lending markets return will only allow them to grow to even bigger, better and even more sustainable business ventures.  

Indeed, in a recent survey we did with our brokers, 46 per cent said they had diversified their product range this year. 

So what does the 360° broker look like?

Well a good place to start is to look at is what type of business you want to start doing, continue doing or stop doing. 

To start new forms of lending, you could review the product selection your panel of lenders currently provide and see what other products would make a good fit to extend the your offering. These may also allow you to increase income and so prove to be profitable and open up some new customer sectors. 

A review of those products and services that are working for you may seem an obvious thing to say, but, one of most important requirements for any financial intermediary to continue to grow in the current climate is to consider all lending options for a client. This financial intermediary can help their client regardless of the type of financing needs the client has, either by dealing direct with the client with a direct lender off their panel or a 3rd party referral in that particular area, either way the 360° broker retains that client and continues to build a long standing relationship which will continue to see that client and any referrals from that client build a regular income stream.

The lending panel of the 360° broker has aspects of many different types of finance whether you’re lending on a residential, semi and fully commercial property, on a first or second charge, long or short term basis. The key is selecting the correct product for the right client and having lenders which can cater for these eventualities. At the Blemain Group we have a lender which can cover all of these eventualities, for many status’ of clients, from those with a perfect credit rating to those which may have experienced financial difficulties in the past.  

The final step in this review process is what to stop doing. This will allow you more time to focus on core business that you know works for you.

 

Now I’m not saying that every broker needs to consider all aspects of lending however having a “plan B” to assist a new application if you cannot help directly is the best way to maximise your income off every new lead.  There are many specialist businesses out there which will cater for one type of finance and these businesses are whom the 360° should align themselves with if they cannot help themselves.  There are two questions which the 360° broker will need to understand about any new market and a 3rd party company 

Which 3rd Party company should I choose?

This is a huge decision to align your business with another’s, as this 3rd party will represent your company when they are speaking to your client. Professional, knowledgeable, commutative with company values you hold similar to your own; will have you building a long term and mutually profitable business relationship. There are companies out there which will be in for the short term and some for the long term but if you base your decision on which company provides the speed, flexibility and service you and your client requires then you’ll certainly have a secondary income stream which is worth developing 

When should I use them?  

Very simply when the product is right! Many companies only consider a specialist 3rd party when “they can’t do it themselves”. This is a very blinkered way to do business in my eyes. All too often in this sector the 3rd party is selected when all the avenues have been exhausted by the introducers direct panel and not necessarily when the requirements are right. Use a 3rd party correctly and appropriately and you’ll will also have a secondary income stream which is worth developing; remember it is infinitely better to earn 50 per cent of something than 100 per cent of nothing. 

Anyway, I need to get back to the 360° feedback sessions only another 10 to do, but before I go maybe ask yourself one question: “What aspects of your business would I like to Start, Stop and Continue?” And, if I can help with any of them, then please drop me a line at [email protected]

Source: Bridging & Commercial — https://bridgingandcommercial.co.uk/the-full-circle-broker