Broker/funder model goes through major upheaval

04/02/2010

 

This half-day Invigors Executive Briefing, chaired by Chris Boobyer (pictured), was dedicated to examining the broker/vendor/funder dynamic. The programme started with Chris Stamper, CEO of ING Lease (UK), presenting an analysis of the current market. He felt that there had been a shift in the mindsets of both brokers and funders in the past year, for example brokers had become more collaborative, helping with collecting arrears, and remarketing off-lease equipment. 

However, exiting funders were blaming brokers for increasing fraud and bad debt. Stamper said he was not at all convinced that fraud was on the increase, but there was more awareness of fraud because of the economic crisis. Those funders that had stayed with the broker channel had adopted a back-to-basics policy, focusing on those asset markets, brokers, and businesses that were making them money. 

Matthew Porton of Genesis Capital gave one broker viewpoint (vendor perspective), in a talk entitled, Is there Light at the end of the Tunnel. His customers’ demand for leasing was definitely on the increase, but the supply of funding was not, and he showed a clever slide of a flight departures board where the destinations had been replaced with a dozen names of departed funders. Porton made a number of good points, and the briefing continued with strong presentations from Ian Willetts, Director of Close Asset Finance Broker Division, and Peter Hunt of Invigors, with lively audience discussion in between.

A full write-up of the event will appear in the March edition of LeasingWorld magazine.

 

Back