Know Your Lender With NapeX Finance
Over the last 10 years the financial market has transformed, expanding with new challenger banks, specialist lending platforms and peer-to-peer lenders. Due to the vast number of lenders in today’s market it has become more difficult for borrowers to understand who they should go to and the options available to them.
It is essential that you ‘know your lender’ and their ability to support your business in the long term and not just the short. KYL is unique to NapeX Finance and our process for onboarding all our lenders is as follows:
1. How Are They Funded?
There are many ways lenders are funded today and understanding this is key to ensuring our customers know who they are working with and the risks associated with that lender. For example, a lender could be a bank, building society, specialist lender all the way through to a peer-to-peer platform crowd funding your loan.
There are different risks associated with all these lenders and our due diligence helps our clients to paint a more informed picture of the organisation around the facility being supplied and the source of funding itself.
2. How Long Have They Been Trading?
This is an area of key importance. Whilst a lender being ‘new’ does not make them less stable it is important to make sure that the people behind the lending platform have valid experience and that their credit process and funding platform is strong.
3. What is Their Financial Strength?
Yes, believe it or not this is a question you should ask of your lender and review any associated press. It’s essential to us that we know a lender is financially sound.
4. How is Their Appetite?
We invest time in understanding each of our lender’s appetites and the key relationships within each lender together with knowing where a lender may be flexible outside of their normal criteria.
5. What Are The Rates and Fees?
Our service does not just concentrate on finding you the best rate. We like to look at the finer details to compare the overall costs of the loan with other options. For example, once all costs have been factored in, the lowest headline rate may in fact not be the best option at all.