New SME loan enables brokers to set price

The offering, available to broker channel partners, enables them to compare their business client against a rate table and select the rate.

After identifying the risk category of the business (based on credit score and time in business), Capify said that brokers can then see the rates for the three-12 month loan terms and select an appropriate rate.

The range varies based on the risk category of the customer; however, Capify told The Adviser that rates start from 8 per cent simple interest with an additional maximum mark-up of a further 8 per cent (8 basis points).

The rates are then subject to approval by the Capify credit team.

The lender said the new business loan aims to “empower brokers to unlock more value from their portfolio” and provide “greater flexibility, choice and control over the finance solutions they provide to clients”.

Capify’s head of business development and partnerships, Stjepan Puljic, said: “I’m thrilled with the opportunity this new solution presents for our valued broker partners. They will now have an avenue where they are in complete control of the deal as they get to dictate their own rates and commissions while we provide the fulfilment of the unsecured loan.

“Brokers understand their clients’ needs more than anyone else, and now they can provide a tailored solution for any scenario they encounter,” Mr Puljic said.

[Related: Government to expand SME Loan scheme]