ISCOVER
As the lending landscape grows more complex, genuine relationships are becoming brokers’ greatest asset. We sat down with Damien Simonfi, founder and CEO of Capital Bridging Finance, to reflect on key lessons from his 20 years in the industry and hear his advice on what brokers need to succeed today.
Q. You’ve been in the finance industry for more than 20 years and it’s Capital Bridging Finance’s 10th anniversary in October. How has the finance industry changed over that time?
Traditionally, I think the power always laid at the feet of the financiers. They’re [the ones] selling money and products. But when [brokers] control 76 per cent of the industry in terms of home loans, I think that may not necessarily be the case anymore.
Ultimately, it’s the brokers who hold the real influence in this industry.
Q. Has lending become more complex over the years?
The short answer is yes. It’s very complex and that’s an evolution of collaboration between lenders, brokers and the consumer. But in saying that, because brokers are so much more qualified now, and the technology is so much more sophisticated, it’s a two-edged sword.
If you go to a broker, you’ve got a far better chance of finding the right product.
Q. What do you think brokers look for in a lender?
From what I’ve seen and heard from all the brokers I’ve spoken to over the last 20 years, it’s reciprocal relationships.
Product knowledge is really important as well. Nobody wants their time wasted. Time is precious.
And there’s nothing more frustrating than not being able to speak to a decision-maker. At Capital Bridging Finance, [if] you call, you speak directly to a decision-maker. We’ve emboldened that in our business because it’s frustrating to go through so many different steps to get a decision.
Q. What challenges do you see in the finance market at the moment?
The products are changing all the time, and I know even with my personal banker, he can barely keep up with the speed at which the change is happening. It’s [also] very frustrating for brokers and it’s frustrating for borrowers.
I think it comes down to ensuring that you maintain relationships, so you stay on top of what product changes are coming up or what’s in the pipeline – keeping those relationships alive.
Q. Why is it important to have solution-minded lenders?
Funnily enough, our tagline at Capital Bridging Finance is ‘We find solutions’.
We used to say, ‘We solve problems’, but about five years ago I thought “We don't solve problems, we actually find solutions.”
[Even], if we don’t have a solution or a product, we’re happy to share our knowledge and share our industry context for the brokers so they can help their clients rather than just saying: “No, I don’t think that’s a fantastic approach.”
We find about 85 per cent of our business comes from broker referrals and the rest come from other referrals, financial planners, et cetera. But we find that our broker network, they come for the product and they return for the service and that’s really important.
It’s not just writing a line, [and then] set and forget. It’s an ongoing relationship.
Q. How big an impact can solutions like bridging finance have?
It’s life changing for some people. We’ve had so many scenarios where borrowers have put a deposit down and then they’ve gone to a traditional bank with their broker and the goal posts have shifted. Perhaps something’s happened and the settlement is going to fall over within 48 hours.
We can fix that up and move sideways to move forward.
[Bridging finance] is a great product for helping people in those sorts of situations.
Q. What advice would you share with a broker who wants to write more bridging loans?
It might be once every year or once every three years [when] you have an opportunity where your client needs a bridging finance loan. Rather than starting from scratch, pick up the phone, give a bridging financier a telephone call, go and have a coffee with them and introduce yourself.
We get to know your business, you get to know our business, and then when that opportunity comes along, you’ve already established a relationship.
It’s hard to start from scratch. Incidentally, there are groups out there who specialise in helping other brokers find bridging finance products. [But] then you’ve got to split the commission.
So, I say just come to the source. Build a relationship. We’re not looking for a loan from you today. We’re looking for a relationship. So, when you do have that loan, you know where to go.
Tune in to hear more!
Find out more about how Capital Bridging Finance helps borrowers navigate complex challenges in the In Focus podcast episode, Supporting brokers in a changing lending landscape’ here:
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