Loan brokers across the UK may be feeling the pinch of the recession and the sluggish recovery, and along with many associates in the finance industry have suffered a rocky couple of years. A combination of the credit crunch, the recession, the banking collapse and the disappearance of many secured and unsecured loan products from the market has left many loan brokers with little to offer prospective loan applicants.
However, many loan brokers have shown the initiative and adaptive qualities to diversify into the debt solutions market and are reaping the rewards as a result. It almost seems to obvious a transformation but many brokers have still not made the leap into the debt solutions market.
Put simply, if loan brokers are contacted by a potential client, but after approaching lenders have to decline the loan application, then offering debt management solutions to the client gives brokers the chance to earn a commission from a deal that would otherwise be dead. Often the reason for failed loan applications is because the client is already servicing a large debt or has missed payments which have affected the credit score and therefore something like a debt management plan is an ideal solution. The broker simply says to his client “I’m sorry but the loan was declined, however if you are struggling to meet your debt repayments then I can offer an alternative solution…” It becomes even more appropriate solution for brokers to offer if the original purpose of the loan was for debt consolidation.
So, how hard is it to refer debt management cases? Well, with UKMS it’s as easy as it could possibly be. We work with loan brokers all across the UK to assist their loan declines with debt solutions. The broker doesn’t have to know everything about debt management or debt solutions, as UKMS’s qualified agents will explain all of that to the client, however full training is given to those brokers who take a more hands-on approach with their clients. The only pre-requisite is that any interested loan brokers must hold a valid consumer credit license in order to refer debt management cases.