Historically, the majority of NACFB
members operate in the commercial property market, and so, rightly
or wrongly, the leasing and vehicle broker members have felt a bit
neglected.
It has been the association’s intention
to address this discrepancy for some time, so that leasing and
vehicle finance brokers can feel included and also have a voice. As
an initial step, the NACFB held its first leasing round table at
the Manchester Airport Hilton on 18 February, and its second (with
immaculate timing) at Canary Wharf on the same day as the G20
summit.
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The meetings were aimed at allowing leasing and
asset finance brokers, together with vehicle finance brokers, to
raise and discuss the key issues affecting their industries today.
Each meeting was attended by more than 30 invited brokers and
members from both the board and executive of the NACFB.
This was the first formal meeting of the asset
finance and vehicle finance divisions, and we are hoping it will
become a springboard for future projects and work. The information
gleaned at the round tables will form the basis of NACFB policy to
build active and productive asset finance and vehicle finance
divisions.
It should be pointed out, though, that this process
is still in its very early stages. The next step for us is to
engage lessors and funders to discuss the main concerns raised by
brokers.
On the agenda
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By GlobalDataParticular issues such as the lack of
Tier 1 funders in the broker market, commission clawbacks, and the
frequent ‘knee jerk’ changes to funders’ credit policies were
repeatedly raised by brokers.
Another point raised by nearly all those
present was the methodology behind some broker ‘culling’. Many felt
some lessors’ current volume-driven business models could be
counter-productive due to the assumption that a flight to quality
can always be achieved by selecting brokers who deliver
quantity.
The issue of broker-to-broker business is
one shared by both broker communities, but the problems faced by
vehicle finance and leasing finance brokers are polar opposites:
with broker to broker business being anathema to lessors, but
perceived as the only way forward for vehicle finance funders.
The next stage is to engage the funders in the
market in a dialogue to try and act as a mediator to put the
brokers’ views across.
We do not promise an instant solution – the old
adage about taking time to turn oil tankers applies here – but we
have a good grounding from which to start work.
This process will take some time, but by way of a
beginning we look forward to speaking with funders who are Patrons
of the Association to see how we can progress matters. Ultimately,
we want to ensure that funders look upon the NACFB logo as a badge
of quality, with the brokers who wear that badge the ones they want
to do business with.
We will continue to listen to the concerns of
members and work together with funders and other key figures in the
industry to ensure that once the recession clouds have lifted, the
future of the industry remains bright.
Adam Tyler, chief
executive of the NACFB
