Frequently Asked Questions
Why do so many professionals and business advisors refer clients to IBC?
Because it’s in their client’s best interests! Not many people do what we do, as effectively as we do it. There are other reasons, though:
Do IBC only deal with banks?
- We do not compete with our introducers
- We are independent and offer clients best advice at all times
- An introducer’s reputation is at risk every time they advise clients on matters with which they are not completely familiar
- We have had extensive training in our field, and many years practical experience
- Clients get their funding quicker and on better terms
- We are members of the NACFB (National Association of Commercial Finance Brokers) and comply with their professional code of conduct
No. Banks are our speciality, but we also deal with building societies, independent invoice discounting/factoring companies, hire purchase/leasing companies and many specialist lenders – too many to list here.
This means borrowers have more options available to them and are more likely to get the finance they need on terms that suit them best.
Don’t IBC only deal with difficult cases?
No. Many borrowers use us because we can give genuinely independent advice and can secure better all-round terms for them. They also see that we will save them a lot of time, worry and aggravation. In reality, we can add significant value in virtually every case.
When we are dealing with difficult cases, the same comments apply but with the added benefit that we will significantly increase the chances of securing finance. Our track record demonstrates that we rarely fail.
Surely, IBC are an expensive luxury when it comes to raising finance?
Absolutely not! Lenders reduce their own fees significantly, so the net cost to the client compares very favourably with banks' normal fee scales.
Don’t forget that borrowers will also benefit from longer-term savings on interest rates and other fees and charges, as well as from improved lending terms and reduced security. They also save a lot of time and aggravation!
Why do banks cut their lending fees significantly for IBC’s clients?
There are three main reasons.
First, we ask them to reduce their lending fee by whatever amount they would normally expect to pay any other introducer who referred a client to them.
Second, we put them in competition with other lenders, so
they need to be as competitive as possible to avoid losing out.
Third, most intermediaries who introduce customers to banks don’t have first hand lending experience themselves – leaving banks with a great deal of work to do in assessing each proposal, analysing all the supporting information, structuring the lending and deciding on the terms & conditions.
IBC, however, deal with most of the banks’ requirements as part of the work we do, so the bank doesn’t have to do all the work and can reduce its fees even further.
All these are partly the reason why our approach is so cost effective for borrowers.
I have never had trouble borrowing money before, so how could IBC help me?
Raising finance is not just about getting a lender to say ‘yes’. The terms are equally important, especially when you consider that facilities can be in place for many years. Therefore, it pays to ensure that borrowings are as flexible and cost-effective as possible, right at the outset.
Also, whilst most businesses will routinely obtain several quotes for say business insurance, or for raw materials, many still do not adopt the same approach to finance – one of their most important resources! This may be because they don’t have the time or expertise to do it, but whatever the reason, it usually means that they miss out on better opportunities elsewhere, whilst conceding too much security, signing up to unnecessary terms & conditions, and paying too much into the bargain!
IBC, however, have the expertise and resources to deal with several lenders at once, and help clients make an informed choice.
To put it another way, many people are capable of dealing with their own tax affairs but for speed, peace of mind and cost-effectiveness most of us prefer to use an accountant.
Are there any other benefits to competitive tendering?
Yes. Transactions can be jeopardised, or fail, at the point of securing finance.
This happens when borrowers negotiate with only one lender but then finance isn’t made available when it should be, or at least not on the terms originally agreed. Often, there isn’t enough time to find another lender who is willing or able to step in at short notice.
Competitive tendering is the answer, although it takes time and experience to organise. By securing detailed outline terms from more than one lender, such risks can be cut dramatically.
Can an experienced manager, with good lending skills, really make a difference?
Yes. Banks always try to lend money safely, and rely on various means to do this. One of the most well known is to have another, more senior manager - at ‘Head Office’ or in a centralised credit department - sign-off on each borrowing application. These senior managers are the real decision makers.
Banks know who their better lending managers are, so this sign-off procedure allows them to compensate for their weaker managers by changing the terms on which money is lent.
They can do this by cutting back on the amount, by calling for more security, or by imposing tougher conditions. A lending manager’s standing can even make the difference between finance being granted or declined.
An added difficulty for borrowers is that the problem is often clouded by the personalities involved: most bankers are personable people, so it is easy for borrowers to fall into the trap of assuming that they are dealing with the right lender, and that the terms they have been given are competitive.
Aren’t banks threatened by your approach?
No. Because of our background, they appreciate our involvement and tend to have more confidence in the cases we put forward.
Although they have to tender to win new customers, we treat them fairly and give them feedback when they’re unsuccessful.
Also, they can be certain that IBC clients are not merely wasting their time by using them as a way of securing concessions from an existing lender.
To read what some lenders have said about us, go to the Endorsements page in the About Us section.
Do borrowers have any say on which lenders IBC approach for finance?
Yes of course. This will always be agreed at the outset. Any lenders can be included in the tender process, even a borrowers existing lender if required.
When IBC are involved, will I lose control over the process?
No. When raising finance, we are careful to agree how the job is to be done, what the timescales are, which banks we will approach, and what the outcome will be: we keep clients informed every step of the way. Reassured by this, most clients are happy to leave it with us!
What other pricing options are available?
Fixed fees, payable on success, are the most popular option. However, we can also offer an ‘all in one’ fee option, or we can work on the basis of shared savings.
An ‘all in one’ option is where we agree one fixed fee, to cover both the bank and us. IBC then receives the net amount after deducting the lending fee payable to the client’s chosen bank.
Shared savings is an option where price is the overriding issue. Here, IBC and the client agree to share actual savings made, in arrears, over an agreed period of time.