(This was a note sent to our network of partner lenders earlier today)
Thank you for being a part of Lendingpot’s network of relationship managers, we are thankful for your continuous support.
Lendingpot is evolving. Please stay tuned as we will progressively roll out some changes over the next few months to better serve all stakeholders in Singapore's financing ecosystem.
Starting today, we will embark on a trial where we will incorporate and distribute loan broker cases through our system. These cases will be prominently highlighted in our usual case description emails to you.
This trial will end on 31st December 2019.
Please read the FAQ below for a further explanation of this development.
We would like to assure you that Lendingpot will continue to hold true to our vision of improving the financing ecosystem for both SMEs and financial institutions.
For the avoidance of doubt, Lendingpot will not be collecting any fees (from loan brokers, SMEs or financial institutions) during this trial period where we are testing the suitability of collaborating with loan brokers.
Please do not hesitate to contact us if you have further questions about this arrangement.
Q1: How would this collaboration (Lendingpot - loan brokers) work for the relationship managers on the network?
A1: The process will mostly remain the same.
Business loan cases (from brokers) will be distributed by email to relationship managers. After reading, indicate that you are interested and respond to the email with a plan on what you can do for the SME client.
However, instead of the name and number of the SME, you will receive the company name, name and number of the broker. Email or contact him or her with your proposal. The broker will choose who they would like to work with.
Q2: Would you (or your financial institution) have to pay the broker for any successful referral?
A2: Lendingpot prefers to let market forces take over these discussions.
If there are any existing arrangements between the broker and financial institution, brokers are allowed to collect fees from the financial institutions for any successful referral.
In the event where there isn’t an existing arrangement, the broker is free to negotiate for a referral arrangement directly with the financial institution.
No fees (by broker or financial institution) will be collected by Lendingpot in this transaction.
Q3: What happens if I choose not to work with this broker?
A3: If, for any reasons you choose not to work with this broker (after receiving his or her identity and contact details) simply respond to Lendingpot
saying that you would not like to work with the broker (preferably with a reason).
Rest assured that Lendingpot fully respects the privacy of our partners and will not reveal your personal details, or the reason for rejecting this case, to the broker.
Q4: Why would Lendingpot do this for brokers and not charge any fee to them?
A4: No fees will be charged to the loan brokers during this trial period (until 31st December 2019). This is a trial to find out if such arrangements will extend the capability of the ecosystem and benefit the financing ecosystem stakeholders.
After this trial period, we will re-evaluate this collaboration and may charge a small subscription fee to the loan brokers.
This service provided to the loan brokers will be akin to them signing up for an online CRM system to manage their own leads.
Q5: What is Lendingpot’s liability for these cases sent out by the business loan brokers?
A5: Like all cases distributed by Lendingpot, we take no responsibility for any default or delinquent behaviour exhibited by the borrower.
All financial institutions and relationship managers are reminded to do their own due diligence before agreeing to provide any loans to any borrowers.
However, unlike the cases that originated directly from Lendingpot, the cases distributed by the loan brokers will not be initially filtered by our team. The loan broker will still own the relationship with the SME and the Lendingpot team will have no contact with the SME directly.
All additional questions about the case should be directed to the loan broker via the initial response email or posed directly to the loan broker.
Lendingpot is Singapore's leading digital loan marketplace with a diverse network of 45 lenders to match your business funding needs.