It’s what makes the industry move along efficiently, and to some extent, this sort of categorisation is needed to ensure the smooth running of the sector.
But it can also cause issues because not every case can be so easily categorised and the specific needs of the client are not always readily apparent.
Look at the subprime-prime issue, for example.
It’s well known that many brokers would rather avoid clients with adverse credit – not because they don’t want to be involved in that kind of business but rather because they believe it’s a lost cause.
They don’t want to take clients they can’t help, and a subprime client with a history of adverse falls into this category.
But do they?
Often what brokers will automatically class as adverse clients are not actually adverse at all. There are plenty of lenders out there who will ignore any issues that occurred over 12 months ago.
And even if the borrower does fall outside the criteria of prime lenders there are solutions on offer.
Indeed, in specialist finance, debt consolidation is big business and by working with these clients, you can help them improve their credit rating and get them back into mainstream lending.
The same sort of quick categorisation occurs when assessing what type of product a customer requires. This one needs a bridge, that one is a development loan.
And by making such assumptions, we can miss out on tremendous opportunities to help the client and to win more business.
By looking at the client’s broader picture rather than pigeon-holing their needs, you may find there are many areas with which you can assist.
Indeed, by opening your mind and exploring all of the needs of and the options available to the client, you can provide a seamless customer journey and secure a client for life.