Got a Complicated Deal on Your Doorstep? Here's Who Can Help

As we talked about in our recent blog, some deals can be more complicated than others. When a run-of-the-mill, high LVR loan application lands on your desk as a broker, it's an easy yes. but if something more 'tricky' arrives, we can be quick to say no.

Besides the opportunity to get paid twice, knowing what to do and who you can contact when a difficult deal lands on your doorstep is a win win for you and your potential client.

The best news? All you've got to do is pick up the phone.

What do difficult deals usually look like?

If we were to draw a line between what we'd call a typical or standard deal and something a bit more complex, usually construction loans, multiple constructions or developments can land in the 'too hard basket'.

These range from simple 'land and build' contracts to 'labour only/partial' contracts, 'off-plan' builds and 'turn key' contracts through to larger development loans.

Essentially, any deals that involve larger sums of money, investment properties and a little more risk involved than your standard home loan for an existing property in New Zealand.

What to do when you receive a difficult loan application

It's as simple as two steps.

1. The first thing we'd say is don't panic. Even if your gut feeling is that it's going to be a bit too risky and a large amount of work, you might be able to make it happen for your client if you don't turn it down straight away.
   
   
2. Get in touch with a short term lender like Southern Cross Partners. All you've got to do here is pick up the phone and have a chat, and one of our BDMs will be able to help you to figure out whether there's an alternative option to service your client.

What do we do at Southern Cross Partners when you present us a difficult deal?

Our goal is to do everything we can to help you and your client out, so rather than declining straight away, we'll look at your deal with the mindset of 'how can we make this work'.

We'll then ask you a few questions to better understand the deal in front of you, and if we think we can make it work, we'll give you the information you'll need to get from your client in order to get the deal into a space where we can confidently say yes.

It's our Business Development Managers' job here at Southern Cross Partners to help you nurture the application, so you won't have to navigate the complexities alone.

More often than not, once you've worked the deal through with your client, we’ll say yes.

The rate of first enquiry through to a stage where our team will look at doing the deal is about 50/50. But in general, we prefer you to give us a ring if you’re not sure and we’ll give you a yes or no, so you’ve got nothing to lose and everything to gain.

At the end of the day, there are only two possible outcomes from giving us a call:

1. It's a no. But that's not a bad thing - at very least, you'll know you did all you can and will be sure that you made the right judgement from the get-go.
   
   
2. You'll have the opportunity to say YES to your client. That means a happy client, which leads to referrals and a fruitful long term relationship.

Worth it? We think so.

If you've got a deal you've been mulling over and think could be a good fit for a short term lending solution, give us a call.