which whilst relevant in the past, may not be appropriate now. How many of us sit down with clients and review facility letters in detail and advise on potential risks, future breaches, and potential pricing impacts? Indeed, the pricing of past debt may have been appropriate at the point it was drawn, perhaps when serviceability was not as strong or proven with LTVs much higher, but is it still appropriate today? Possibly the best service we can provide is to identify debt that has
been taken and benchmark it against today’s marketplace. If it is expensive, work with the client to refinance it. Where we find that the funds in place are cheap, the advice should then be to ‘hang onto it for dear life’ – perhaps over time CBILS and BBLS will fall into this latter category. Reflecting again as I write this, I’m sure we still haven’t done enough and should strive to do more, so if you have any good ideas or want to know more about what we have done, I’m always happy to hear from my fellow professionals.
A bank of knowledge not simply a bank of money Our support for your broker business goes beyond finance. We can connect you with the right people, with the right knowledge, to boost your clients’ businesses and help them grow. Search: NatWest Brokers
NACFB | 49
