Non-bank lenders in the commercial loan sector have taken a range of approaches to gear up for the challenges of the post-pandemic world. But for Equity-One, which is exclusively focused on the commercial lending space, it’s all about keeping things simple.
Read more: A new phase in commercial lending
“We have only one product; that is commercial first mortgages that are interest only and designed to be repaid at any time with no break costs so the borrower can get on with their plans,” said Dean Koutsoumidis, managing director at Equity-One.
For Equity-One, consistency of approach is the name of the game, and just as important is having a reliable back-up plan.
Koutsoumidis said Equity-One’s ideal borrower is essentially “bank quality” but not “bank ready,” and many of these clients will eventually return to a long-term product with their bank, or make the switch to a construction funder.
Koutsoumidis believed the basic issues facing the ever-evolving market don’t change much despite pandemics, geopolitics, or the problem of the day.
“The problems are the basic ones,” he said. “How can I be competitive? How do I create my presence in the market? How fast or efficiently can I execute what the client expects? These are the challenges of running a business.”
Most long-standing businesses understand the need to survive another day, Koutsoumidis said, and the role of brokers is more important than ever.
“The great thing for brokers now is that lenders are really open to helping them,” he said. “The importance of the relationship between broker and lender is, I believe, at an all-time-high.”
Commercial is a key part of any broker’s portfolio, and it’s important to understand clients’ needs well.
“As is the case for us, brokers’ relevance to their clients is a constant test, and they understand that commercial loans, like other forms of credit, are a tool they need to have in their toolkit,” Koutsoumidis said.
Equity-One is expecting to become even busier over the next 12 months. It recently partnered with Westlawn Finance and Consolidated Operations Group.
