B2b loan broker

[Emmk]

Hi all. Looking to become a loan broker and wanted to find out the best way to get access to a lender without approaching lenders one by one?

I have clients already who are always asking if I know any lenders

Thanks

 

[Mark T Jones]

I dont really understand the question?

You want lenders, but you dont want to approach them individually?

You could join one of the many umbrella networks out there - I've no idea what the costs are, some definitely have low barriers to entry.

If you're going it alone, then you need to know lenders, what they do, how they operate etc - that's what a broker does...

Also, if you're doing regulated bus, you will need FCA authorisation

 

[Emmk]

I dont really understand the question?

You want lenders, but you dont want to approach them individually?

You could join one of the many umbrella networks out there - I've no idea what the costs are, some definitely have low barriers to entry.

If you're going it alone, then you need to know lenders, what they do, how they operate etc - that's what a broker does...

Also, if you're doing regulated bus, you will need FCA authorisation

Thanks. I checked with FCA and they mentioned we don’t need to be fca regulated because we aren’t handling client funds nor are we offering advice. I tried to look for an umbrella of brokers and only found 4. We thought it would be a better route using a network than going to lenders individually

 

[Mark T Jones]

Thanks. I checked with FCA and they mentioned we don’t need to be fca regulated because we aren’t handling client funds nor are we offering advice. I tried to look for an umbrella of brokers and only found 4. We thought it would be a better route using a network than going to lenders individually

The FCA advice is incorrect- you need to be authorised (Possibly limited authorisation) if you are dealing with regulated deals - in b2b that will typically be sole traders & partnerships sub £25k loan

Also, some lenders will only deal if you are authorised

 

[tony84]

You will need to be authorised to do none regulated business.

Chances are you will need to start trading under a network. How much do you plan on writing? Anything less than maybe £30-50k and you might struggle. Below those numbers and you would be better referring it off to someone.

 

[Lisa Thomas]

I dont really understand the question?

You want lenders, but you dont want to approach them individually?

You could join one of the many umbrella networks out there - I've no idea what the costs are, some definitely have low barriers to entry.

If you're going it alone, then you need to know lenders, what they do, how they operate etc - that's what a broker does...

Also, if you're doing regulated bus, you will need FCA authorisation

Put a post on socials?

 

[Mark T Jones]

Put a post on socials?

At a tangent, but on the topic, as a finance broker, the easy part is finding businesses that want/need money. (Just see how BBLs flew out of the door)

The challenge is finding the right people, who want money for the right reason, on appropriate terms & can provide supporting information.

 

[tony84]

Hmmm BBL - basically interest free money with no PG. I cant think why flew out.

 

[Mark T Jones]

Hmmm BBL - basically interest free money with no PG. I cant think why flew out.

And minimal underwriting.

It was billed among us brokers as a grant with a repayment option.

But it is a case study in the difference between good lending & shoving money out of the door.

 

[Mark T Jones]

You will need to be authorised to do none regulated business.

Legally speaking you won't. But some lenders will want it.

The FCA are a bit confused on this point, but I de-authorised by mutual consent after 10 consecutive nit l returns.

 

[tony84]

Legally speaking you won't. But some lenders will want it.

The FCA are a bit confused on this point, but I de-authorised by mutual consent after 10 consecutive nit l returns.

I have my gabriel (or reg data as it is now) returns to do this months.

I hate them! Overly complicated for what they are.


You will know better than I will on the commercial front. Sometimes I think I am on the wrong side of this industry. Commercial lending probably has lower PII and FCA fees and higher income! Just less customers I guess

 

[Mark T Jones]

I have my gabriel (or reg data as it is now) returns to do this months.

I hate them! Overly complicated for what they are.


You will know better than I will on the commercial front. Sometimes I think I am on the wrong side of this industry. Commercial lending probably has lower PII and FCA fees and higher income! Just less customers I guess

We are definitely less regulated, the downside being, far more cowboys