The National Association of Commercial Finance Brokers has issued a warning to brokers that even in hard times, the client and the ethos of ‘Treating the Customer Fairly’ must come above all other considerations.

Chief executive, Adam Tyler said: “The broker sector is facing one of the biggest challenges of its existence. The combination of horrendous economic conditions and the resurgence of advanced fee fraud mean that it’s more important than ever to keep standards high. Although times are tough, brokers must not be lulled by offers of high commission – the customer is paramount.”

He continues: “We recognise how difficult the last 18 months have been for many of our members. We have worked hard to make sure the profile and reputation of the Association and its members has grown; to the extent that we are now being approached by lenders looking to use our members exclusively as a route to market. The aim is to ensure that there are greater opportunities for NACFB brokers to access exclusive funding lines alongside a greater range of opportunities to earn extra income, without losing sight of the aims of TCF.”

The broker market has changed over the last 2 years: many lenders have left the market – some with no notice leaving brokers’ clients high and dry; some have closed their doors to brokers business; all others have tightened their criteria; and fraudsters are preying on desperate SMEs. Many brokers from outside the sector who saw commercial finance as an easy opportunity when the residential mortgage market dried up, were forced to move out again when a lack of both experience and easy credit made it very difficult to make a living.

Adam Tyler continues: “The pure commercial finance broker - and the NACFB represents over 90% of these - can now really come into their own. The absence of easy credit means that struggling SMEs need expert advice, now more than ever, and whilst these are still desperate times for the small businessman, we must not lose sight of “Treating the Customer Fairly”. Whilst many of our members are not FSA registered it is still imperative that our members are encouraged to follow this ethos. They need not only to find credit for their customers but to ensure that they are getting the best deal they can for them. So whether they are considering margins, arrangement fees or even exit costs, our members will be looking to provide the best deal possible.”

ENDS