Aggregator strengthens broker access to specialist commercial lending as valuations tighten
Mortgage aggregator LMG has appointed commercial lending specialist Msquared Capital to its panel, giving its network of roughly 6,000 brokers additional support for complex commercial deals.
The move comes as shifting property valuations increasingly determine whether commercial settlements proceed.
Msquared Capital focuses on short-term commercial finance, offering lending of up to 80% loan-to-value ratio secured against residential, commercial and industrial property.
“Business conditions are challenging and changing quickly, and lending criteria is tightening without notice across the market,” said Michael Volkiene (pictured right), chief commercial officer at Msquared Capital.
“Brokers have a real opportunity to help clients act decisively in uncertain business conditions – and to back SMEs through growth scenarios that play out over the next six months to three years.”
According to Volkiene, valuations have become a key obstacle for brokers who rely on property to secure client finance. Property values have declined by as much as 10% in certain segments, while valuation data can lag clearance rates by around 90 days. Lenders, he said, are examining leverage and exit strategies more closely than in previous years.
Volkiene said a lender's capacity to assess property risk accurately, rather than defaulting to the most conservative figure and withdrawing, is often what determines whether a transaction settles or stalls.
“In addition to property market expertise, we've got one of the most diverse and broad valuation panels in private lending – the household names that banks know and like to see,” Volkiene said. “Because of our reputation and standing in the industry, we can often see a valuation reassigned so brokers can execute. That's an absolute game-changer – a winner for us and for the client.”
Sam Allam (pictured right), manager – commercial lender partnerships at LMG, said the addition reflects rising broker demand for lenders that can provide certainty on complex transactions.
“In fast-moving market conditions, and facing even faster-moving lending policy, brokers need experienced lenders that understand the nuances that can delay a critical settlement,” Allam said.
“Msquared Capital offers the exact commercial lending and property experience needed to help brokers guide clients through challenging business conditions.”
“The conversation among brokers has moved from 'why diversify' to 'how'. More brokers are coming to us with refinancing and working capital scenarios that need a partner who can move quickly and price transparently.”
Allam added that bringing on specialist lenders such as Msquared Capital gives brokers greater confidence to take on more complex commercial work.
The appointment comes as small and medium-sized enterprises face tighter cash flow conditions, with major banks increasingly withdrawing from deals involving complex structures, mixed-use assets or non-standard income.
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