Brokers have expressed concern at the news ING Lease UK has
entered into an agreement to provide asset finance facilities for
the Barclays Business Banking customers, as reported in Leasing Life.
The National Association of Commercial Finance
Brokers (NACFB) is concerned the deal may exclude its members from
brokering finance deals with Barclays’ SME customers.
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One independent finance broker has suggested
the deal will take business away from ING’s broker network and
contradicts the company’s policy statements on supporting
brokers.
ING Lease last week signed a deal to provide
asset finance for the business customers of Barclays Bank.
Through the alliance, Barclays SME customers
will be able to obtain asset finance products funded by ING through
their bank just months after it announced it would no longer
provide asset finance for businesses with a turnover of less than
£5m.
The agreement will run as a three month pilot
in eastern England after which both parties will assess the success
of the project.
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By GlobalDataAdam Tyler, chief executive of NACFB, said the
organisation was encouraged by ING’s statement that Barclays would
be seen as another introducer and would be on a level playing
field. However, Tyler suggested Barclays would have an advantage
over other brokers if there was more than one party in on a
deal.
He added, since Barclays announced they would
stop providing asset finance to SME customers NACFB members have
forged good local working relationships with Barclays’ bankers and
their customers.
He said: “It is unfortunate that Barclays have
not seized on this opportunity, which not only offered their
customers’ access to ING, but also alternative funders in the event
that ING were unable to offer a suitable solution.”
He added he understands Barclays need to
service the requirements of their customers and there are benefits
of having a formal relationship with ING and said: “I believe a
more effective method would have been to formalise local
relationships with NACFB members who would provide the necessary
expertise, legwork and be able to offer an alternative in the event
ING had to say no.”
A Barclays Business spokesperson said: “We
appreciate the views expressed by Mr Tyler.
“This pilot follows an extensive review and it
was decided that a formal relationship with ING Lease would best
serve the needs of our customers.
“We value the broker community and are
committed to maintaining the good relationship we have with the
NACFB and its members.”
Paul Robson, managing director of Medialease,
writing on an internet forum in response to Leasing Life’s
coverage, said: “These are deals that Barclays Bank would have
turned down but now will happily pass to ING and presumably be paid
for the introduction.
“This decision by ING is directly taking
business away from its loyal brokers, who have consistently
supported ING and who have served these same Barclays Bank
customers through the good and the bad times, often when Barclays
couldn’t or wouldn’t help.
“This statement from ING Lease directly contradicts their policy
statements that they are focussed on supporting their broker
network.”
Mark Picken, vice president of sales at ING
Lease UK, responded to say ING’s policy of sourcing business
through introducers had not changed and there was no intention of
changing it.
He said: “Our sole channel to market is and
remains the intermediary channel and Barclays are just another
intermediary.”
Picken stressed Barclays would have no
competitive advantage over other brokers and said ING expected a
similar rate from return from Barclays business as they receive
from elsewhere.
He added: “We are a little offended at the
suggestion we have deserted our brokers because through the grim
times of 2008, 2009 and 2010 we have been here for brokers when
many others deserted the market including Barclays and we are very
proud to be here for our brokers during these very difficult
times.
“We are proud to have stayed loyal to them and
we would not anything that would intentionally marginalise that
relationship.”
grant.collinson@vrlfinancialnews.com
