How to choose the right standby service partner

There are several reasons why a great standby servicing partner becomes essential for lenders. The risk in exposure resulting in cash flow issues and disruptions to operations being just one. But with many providers to choose from, which one do you choose?

In our latest article, we take a closer look at some of the top considerations for choosing a standby service partner that works for you.

Reliability

With the recent cost of living crisis, the UK has experienced economic uncertainty for some time now and this has understandably affected businesses. Therefore, the need for lenders to ensure that they have proper protections in place is more vital than ever.

It is important therefore to look at your chosen partner’s previous achievements and reputation. What do its customers say about the service they have received? Are they well known in the industry, and for the right reasons? Do they have a strong credit rating? Ensuring you ask these questions early on and perform background checks can help avoid any nasty surprises later on.

Experience and expertise

How long has your chosen standby servicing provider been around for? Are they able to provide you with the right advice for your business? Ideally, you’d choose a provider that has been providing standby services to lenders for several years, can provide expert advice and is well known in the industry. Working with a stable and knowledgeable provider will reassure investors that their capital is safe with a trusted servicer who can step in at any time.

Flexibility

As a business grows, so often does its needs and requirements. Therefore, selecting a service provider that can adapt and grow alongside you is essential. Bonus points if your standby servicing partner also provides additional services such as Audits and Modular Outsourcing Services (like VLS ??). This means that your business doesn’t need to wait for the budget for additional headcount and a larger workspace, you can scale your business using the full operational capacity and support that comes with your provider.

The right tech

A reliable and experienced standby servicing provider will already have the right technology in place to adequately support your business. It is important that they are able to maintain operational efficiency to mitigate risks and ensure a seamless performance, avoiding disruption that may negatively impact portfolios.

Insights

Not having access to ‘good’ data means that your business is at risk of having to make big decisions based on gut, rather than fact. A standby service partner that can provide you with valuable industry insights can therefore have long term benefits on your business. You will have access to an overview of market data, which can therefore help to drive risk appetite, commercial activity, and operational change.

A good provider can also assist you with regular portfolio checkups, offering an added layer of oversight and information on which to base your business decisions.

Compliance

It may seem like a given that any standby servicing provider you choose will be compliant with any relevant legislation, including Anti-Money Laundering (AML) and Consumer Duty, however it is important to confirm this and check out their website for details of any authorised and regulatory bodies, such as the Financial Conduct Authority (FCA).

VLS has been a trusted provider of outsourced solutions to financial services companies for over 25 years, solving the biggest challenges in lending through our innovative application of people, technology and data.

To find out more about how we can provide reliable, flexible and proven standby servicing support to your business, speak to one of our team today.