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August 29, 2013updated 12 Apr 2017 4:01pm

Price and speed most important for UK brokers

UK brokers nominated pricing and speed of service as the two most important requirements of a leasing funder, according to a Leasing Life and United Trust Bank survey.

By Grant Collinson

UK brokers nominated pricing and speed of service as the two most important requirements of a leasing funder, according to a Leasing Life and United Trust Bank survey.

The competitiveness of a funder’s rates was voted most important by brokers as 24% of all votes identified pricing as one of three key requirements.

Speed of decision-making was second with 20% of the vote, although speed was placed as the number one requirement more often than pricing.

Ease and standard of service was also identified as important with 16% of the vote while consistency and clarity in underwriting policy gained 14% of brokers’ votes.

Elsewhere in the survey, brokers were asked about the effect of the withdrawal of ING Lease in November 2012 on the UK market and identified more positives than negatives.

Just under of a quarter of respondents said other lenders in the market have had to try harder to compete for broker business in the wake of ING Lease’s departure, while 18% said there was now a broader range of lessors offering funding to the market. Just under a third of brokers said they had experienced no change to their business.

On the negative side, 6% said speed of decision making was slower among the funders left in the market while another 18% said it was harder to find funders to place certain deals which ING Lease had previously accommodated.

Software and IT equipment was the sector identified by brokers more than any other as being negatively affected by ING Lease’s withdrawal, with 28% of respondents claiming business was harder to place in the segment.

The vehicle sector, at 20%, was also identified as negatively affected, while the prestige cars sector was noted by a further 12% of respondents. A further 10% of brokers said the agricultural equipment sector had also been negatively affected by ING Lease’s withdrawal.

Just 6% of survey respondents felt funding for the print sector was hit following the Dutch lessor’s departure from the UK market, but 22% said the print sector suffered from a lack of funding irrespective of ING Lease. Similarly, 20% of brokers said the software and IT equipment sector was also underfunded in the UK broker space.

The research was conducted ahead of a round table on the UK broker market to be hosted by Leasing Life and United Trust Bank on 5 September and the complete findings will be presented to delegates at the event.

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