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I recently attended the National Association of Commercial Finance Brokers’ (NACFB) Commercial Finance Expo as a guest exhibitor.
Increasingly, trade associations in our sector are working together more closely and we are in frequent dialogue with the likes of the NACFB, the Financial Intermediary & Broker Association and the Association of Mortgage Intermediaries.
A good trade body should look out for its members
The opportunity to be present at the Expo was a good chance to demonstrate our relationship with our colleagues at the NACFB and, of course, to help raise the profile of the Association of Short Term Lenders (ASTL).
I was both a little surprised but delighted at the number of people who took the time to visit our stand and learn more about us. It shows there is continued interest in trade associations and the positive role they can play, so this is a good opportunity to consider what we bring to the industry.
Collective interests
The role of a trade association is to represent the collective interests of its members, as well as protect and promote the industry in which it operates. A good trade association should look out for its members by identifying bad practice and ensuring members behave in a responsible manner.
A trade association lays the foundations for sustainable growth in the industry, providing a framework for open dialogue and best practice
It should also provide input and act as a unifying voice in response to the relevant authorities, so that legislation and regulation are framed so as to protect the consumer but not to stifle competition and unnecessarily slow down processes. It should provide members with market information and insights that help to run their businesses more successfully.
We are sometimes asked about the financial benefits of being a member of a trade association. There certainly are benefits; often, for example, as a result of pooling buying power to achieve preferable rates on essential services. However, the true value shouldn’t be something to which you can attribute a return on investment.
We are committed to a culture that encourages a focus on both responsible lending and the end-customer
Instead, a trade association lays the foundations for sustainable growth in the industry, providing a framework for open dialogue and best practice, and building a strong reputation that ultimately attracts more customers and investment.
So any business that is serious about growing its long-term prospects should contribute to membership of a trade association.
Transparency
At the ASTL, one of our key objectives is to achieve greater transparency in the industry. We are committed to a culture that encourages a focus on both responsible lending and the end-customer. All members agree to adhere to our code of conduct and membership rules.
There is continued interest in trade associations and the positive role they can play
This is particularly important right now. The UK economy faces headwinds that will take their toll on affordability, credit ratings, deposit savings and other elements of buying property. We are likely to see more chain breaks, and more borrowers turning to the specialist market. Projects will face supply-chain concerns, labour shortages and other unexpected delays.
In this environment, sensible, sustainable lending can prove invaluable. So it is important that we continue to make bridging finance available for short-term cashflow needs. And lenders must take the right precautions to ensure they lend in a robust and sustainable way.
Increasingly, trade associations in our sector are working together more closely
We think ASTL membership gives brokers the confidence a lender will take a fair and sensible approach, ensuring clients are treated well and provided with the best outcomes.
This is probably the most significant role of a trade body like the ASTL and it comes to the fore at times like this in particular, when people are looking for some reassurance during a period of uncertainty.
Vic Jannels is chief executive of the Association of Short Term Lenders
This article featured in the July edition of MS.
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