FOLK2FOLK has launched a new broker engagement programme aimed at providing greater transparency around how lending decisions are made as execution becomes an increasingly important factor in the specialist lending market.
The specialist property-backed business lender has unveiled Inside Credit, an initiative designed to give brokers greater insight into its credit decision-making process and direct access to the team responsible for assessing and approving transactions.
The launch comes amid growing demand from brokers for a clearer understanding of lender appetite and how deals are evaluated in practice, particularly as market conditions become more selective and execution-led.
FOLK2FOLK said brokers are increasingly having to navigate differences between published lending criteria, underwriting outcomes and issues that can emerge later in the transaction process. As a result, there is greater focus on understanding not just which lenders can support a transaction, but how reliably deals progress through to completion.
The Inside Credit programme will place head of credit Fraser Clark at the centre of broker engagement activity, providing insight into the lender’s credit philosophy and the factors that influence lending decisions.
Clark (pictured) says: “Published lending criteria are important, but they only tell part of the story.
“A transaction can appear to fit on paper while still raising questions around structure, security, repayment strategy or overall risk. Equally, some deals that initially look challenging can become viable when the underlying proposition and security are properly understood.
“Inside Credit is about giving brokers direct access to the thinking behind our lending decisions and helping them understand how opportunities are assessed in practice.
“The more clearly lenders can communicate how they assess opportunities upfront, the easier it becomes for brokers to identify where a deal is likely to fit, where challenges may arise and how it can be better structured from the outset.”
The initiative will be delivered through broker-focused articles, guides, webinars and digital content. FOLK2FOLK said webinars will form the core of the programme, with Clark discussing how transactions are assessed, common structuring challenges and the considerations that underpin underwriting decisions.
Kawai Chung, chief executive officer at FOLK2FOLK, says: “As the market becomes more selective and execution-led, lenders have a responsibility to make their approach easier to understand.
“Bringing our credit team closer to the intermediary market is part of making FOLK2FOLK clearer, more predictable, and easier to work with.”
The lender said the initiative is intended to help brokers better understand deal fit and identify potential challenges earlier in the process, improving certainty for all parties involved in a transaction.
