Stef’s market overview – October 2024

In this month’s market update, Stef offers some advice to lenders on how to successfully manage clients away – a task he’s handled many times.

Just this month, I completed a ‘hostile’ manage-away, where trust was low. One lender contact even said, “Credit doesn’t believe you, we’ve been let down before.” Strong words, but I’ve learned a lot from these experiences. Here are my top 10 tips for lenders navigating client exits.

• 1. Engage with your client – A breach or disagreement isn’t always what it seems. Try to understand why it happened. It’s rarely cynical.
  2. Meet them face-to-face – Don’t throw red tape at them straight away. Barriers push clients away rather than helping.
  3. Stay professional – Sounds obvious, but it’s crucial to maintain professionalism.
  4. Bring in a trusted broker – Engage an advisor with a proven track record.
  5. Believe in the market – You’ll be surprised at what’s possible today, no matter the event.
  6. Your credit policy isn’t the only one – What’s too risky for you may work for others.
  7. Don’t pull the plug – Cutting cash flow only worsens the situation. Focus on keeping the business alive while solutions are found.
  8. Trust the process – Not all brokers deliver, but most professional ones will, and fast.
  9. Keep communication open – Don’t assume you know something without asking first.
  10. Say thank you – Smile once the job’s done and appreciate the effort involved.

  This approach doesn’t apply to every situation, but these tips will help most manage-aways go smoother, even when trust is low.