FOLK2FOLK opens up credit decision-making for brokers
As the specialist lending market becomes increasingly execution-led, brokers are placing greater emphasis on understanding not only which lenders can support a transaction, but how lending decisions are assessed in practice and how reliably deals progress through to completion.
Across the market, brokers are increasingly navigating ambiguity between published criteria, underwriting outcomes and issues that only emerge later in the transaction process. This is creating growing demand for earlier clarity around lender appetite, deal fit and how transactions are likely to be assessed in practice.
In response, FOLK2FOLK, a specialist property-backed business lender, has launched Inside Credit, a new broker engagement initiative designed to provide greater visibility into the thinking behind its lending decisions and give brokers direct access to the people responsible for assessing and approving deals.
The initiative responds to wider market commentary and broker insight gathered by FOLK2FOLK, both of which point to growing demand for earlier clarity on lender appetite and deal fit.
At the heart of the initiative is a commitment to making FOLK2FOLK’s credit philosophy more visible, by bringing head of credit Fraser Clark to the fore to share the judgement behind lending decisions and the factors that shape positive outcomes.
Fraser said: “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 a series of broker-facing articles, guides and digital content built around practical insight from Fraser Clark, with webinars forming the backbone of the programme.
Through these sessions, brokers will hear directly from Fraser Clark on how deals are assessed in today’s market, common structuring challenges, and the trade-offs typically considered during underwriting.
Kawai Chung, chief executive Officer at FOLK2FOLK, added: “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.”
Inside Credit will become an ongoing part of FOLK2FOLK’s broker engagement activity, providing practical insight into credit decision-making and supporting brokers in understanding the lender’s judgement-led approach to property-backed business lending.