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On the latest episode of Broker Daily’s Finance Specialist, hosts Liam Garman and Trent Carter broke down these two, often conflicting priorities.
The pair noted that while demand for funding remains, particularly among small and medium-sized enterprises (SME), the pathway to approval is becoming more complex, as lenders place greater emphasis on credit quality and risk management.
“Watching the news at the moment, everything is feeling a little negative, and sentiment is starting to drop,” Carter said.
“I think that there’s a place now for brokers to start to think about where they fit into it. And the good thing about brokers is that no matter whether it’s a boom or a bust, there’s a place for us to work with clients.”
Urgency remains, but lending conditions tighten
For SME clients, Carter said that access to funding is often time-sensitive, tied directly to cash flow needs, operational pressures, or growth opportunities. Broker Daily has recently reported on the pressures facing SMEs and that business confidence has fallen to its lowest level since 2024.
That urgency is placing continued pressure on brokers to deliver fast outcomes, even as lenders adopt a more cautious approach.
He said: “Speed matters, because a lot of the opportunities that we get in the SME world are time-sensitive. It will be ‘I’ve got to get this stock purchase done, I’ve got to get my tax obligations sorted out before it’s an issue, I’ve got to win this contract.’”
However, as economic conditions shift, Carter said that lenders are tightening policies and increasing scrutiny, creating a disconnect between the speed brokers aim to deliver and the level of diligence lenders now require.
“Lenders are naturally going to value tighter credit settings, to continue to lend money to people that they’re more certain about,” Carter said.
Preparation and precision
Rather than removing the need for speed, the current environment is redefining it. Brokers are increasingly moving away from rapid, high-volume submissions and instead focusing on structuring deals more effectively before they reach a credit decision.
“It’s time for brokers to slow down to speed up,” Carter said.
“I think now, where our expectation is to make faster and clearer decisions, we’re going to go through a transition period where perhaps that’s going to slow down a little bit.
“We want certainty, turnaround times and clarity. They want better credits and probably want to ask a few more questions. So I think good brokers out there are probably aware of this.”
This more deliberate approach is aimed at improving first-time approval rates, particularly as lender appetite becomes more segmented and borrower profiles require closer alignment with specific credit criteria.
“We want to be landing on a yes on the first instance,” Carter said.
At the same time, certainty is becoming just as important as turnaround time. In a market where delays can directly impact business outcomes, brokers are placing greater value on clear and timely decisions – even where that outcome is negative.
He added: “Often a fast no is better than a slow yes.”
A more deliberate role for brokers
Carter also stressed the importance of communication, as brokers work more closely with both clients and lenders to manage expectations and navigate a more complex credit environment.
Ultimately, Carter said that the brokers best positioned in this market are those who can balance urgency with discipline – using stronger credit understanding, better preparation, and more targeted lender selection to deliver outcomes.
“It all revolves around communication,” he said.
“Understanding what drives that in terms of the internal banks, in terms of the credit conversation, understanding that you can have this conversation with your client early to say, ‘I know that you are here, but because of XYZ, you’re not viewed in that way anymore. However, we’ve still got options for you and here they are.’
“Because the ultimate thing is we’re not lending money for money’s sake. We’re solving problems for the business. So clients particularly don’t necessarily care if it goes to the big four lenders versus a downstream lender, as long as they can get their problem solved.
“We really want to make sure that we’re communicating well, and we understand our clients well.”
[Related: Brokers urged to rethink SME strategy]
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