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Could bridging lenders scrap the BDM model?

Many bridging lenders have Business Development Managers (BDMs) whose role is to develop relationships with bridging loan brokers. They keep brokers informed about the lender’s products and services.

If a broker finds a borrower whose needs suit a particular bridging finance lender, they inform the BDM about the loan application who then passes the details to the lender’s underwriting team for them to approve or turn down the loan application.

Some lenders are now reconsidering this model. One alternative is for brokers to deal directly with the underwriters without the need to use the BDM. One advantage of this is that it could speed up the loan decision process.

Other lenders want to retain BDMs to maintain relationships with brokers, but stop them being involved in individual loan applications. Another approach by lenders is to let their BDMs have more authority and be able to make decisions about loans.

Some lenders have BDMs who are specialists in such areas as commercial property or property development.

Lenders who have stopped using BDMs say that the advantage is that brokers can talk directly to the loan decision makers and experts employed by lenders who have detailed knowledge about particular areas of bridging finance.

Though some lenders may abolish the BDM model, it is not expected that most lenders will stop using BDMs. They are more likely to change the role of the BDM.

No matter what changes to the BDM model lenders instigate, bridging brokers will continue to find the best deals for their clients.