To counteract this, we work with a number of banks, specialist lenders, funds, and family offices from across the globe where AUM is either not an option or not mandatory when starting a relationship.
It is this network and ability to work with the lenders that can make HNW/UHNW finance brokers become a leader in the field and stand out from the crowd.
For those HNW and UHNW clients who do have the AUM to pledge, the relationships firms have with the best banks and investment houses in the world will help achieve the best outcome. Networking is a key core aspect of lending.
Also, firms with a variety of offerings combining asset/wealth management and debt capabilities under one roof, means they can be exceptionally well-placed to advise on both sides of the balance sheet to ensure clients receive the best lending solutions and investment offerings.
Multiple income streams, jurisdictions and currencies
Different jurisdictions and currencies can play a big part in what lenders we approach.
For HNW and UHNW clients with exposure to some of the more exotic currencies, banks can discount by 20-30 per cent, which can often erode what would otherwise be a comfortable affordability position.
With a network of banks that operate in different countries and regions across the world, we can ensure the most appropriate lender is found.
Firms should also work with the client to understand their exposure to currency risk and what mitigants can be implemented to remove some or all of this risk.
If necessary, you should work with third parties to implement solutions to assist the bank’s underwriting process and ensure the lender is comfortable with the risks they are taking.
Misunderstanding the complexities
There is a real lack of understand about complex lending to HNW clients in general, and the intricacies involved in taking a lending application from start to finish.
One of the key issues for HNW clients is they often fail to appreciate the length of time it can take to borrow money, and so will run out of time. Starting the process as early as possible is always recommended.
Clients sometimes fail to enlist the services of a broker. Given the ever-changing lending landscape, especially for HNW clients, working with a skilled broker is key to getting the best deal.
Instead, clients will often try and navigate this themselves with their existing banking relationships, but can waste a lot of time and money on applications that end up falling down for a variety of reasons.
Brokers, which specialise in HNW debt, will know exactly who to approach and how to position and articulate the application with different lenders, saving clients huge amounts of time and ensuring the best deal in the market is found.
