Brokers & Referral Partners
Community Development Financial Institutions (CDFIs), such as Coventry and Warwickshire Reinvestment Trust (CWRT), often rely on external partners to connect with potential borrowers. Two common types of external partners are brokers and referral partners.
Brokers
Brokers act as intermediaries between the borrower and CWRT.
​
They are often more involved in the loan process, helping the borrower gather documentation, complete applications and liaise with CWRT.
​
Brokers may present multiple financing options to their clients, not solely CWRT products.
​
Fee Structure:
Brokers usually charge a fee for their services, which
may be a percentage of the loan amount.
​
This fee might be paid by the borrower, CWRT, or both, depending on the arrangement.
​
CWRT pays a set 1% fee of the loan amount to the broker for a successful loan application.
​
Example: A broker assists a small business in securing a £100,000 loan from CWRT. CWRT pays the broker 1% commission fee of loan advanced, in a single payment after the Loan Agreement is signed, and funds are disbursed to the borrower. In this example, the fee is £1,000 based on £100,000 of the gross loan advance made.
Broker Obligations and Expectations
When partnering with CWRT, brokers are expected to maintain high professional standards and adhere to the following obligations:
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Regulatory Compliance
Comply with all regulatory and legislative requirements in carrying out obligations under the partnership agreement
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Provide CWRT with evidence that relevant product and compliance training is completed on an annual basis
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Permit disclosure of relevant documents and records to any authority or organisation to which CWRT is subject
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Professional Conduct
Conduct introductions and referrals with all due care and diligence
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Cultivate and maintain good relations with clients and potential clients
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Treat customers fairly and will not give advice or explanation of any CWRT products or its suitability to any potential customers
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Will not do or omit to do anything that may bring CWRT into disrepute
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In all dealings concerning CWRT or this agreement, describe your role as "Introducer" for CWRT and not hold yourself out as being connected in any other manner
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Client Relations
Provide CWRT with introductions of clients/customers for loan products that CWRT offers
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Be responsible to advise any clients/customers of any introducer fees
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Promptly inform CWRT of any complaint or after-sales enquiry received by any persons introduced or referred to CWRT regarding any matters likely to be relevant in relation to this agreement
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Co-operate fully in any investigation and resolution of any complaints from clients
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Business Separation
Ensure that your business of introducing clients to CWRT is kept separate from any other financial business or advice conducted by you
What Brokers Need to Provide on Behalf of Their Clients:
To facilitate a smooth application process, brokers should ensure their clients have the following documentation ready (pending client approval):
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Business Plan – A comprehensive overview of the business strategy and objectives
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Cashflow Forecast – Projected cash inflows and outflows
Management Accounts – Up-to-date financial statements showing the current financial position
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Business Bank Account – Evidence of an operational business bank account
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Bank Statements – Recent business bank statements (typically 3-6 months)
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Having these documents prepared in advance will help expedite the loan application process and demonstrate the client's preparedness and financial stability.
Referral Partners
Referral partners act as connectors, directing potential borrowers to CWRT.
​
They typically do not get involved in the application process or ongoing loan management.
​
Common referral partners include the Coventry and Warwickshire Growth Hub, Coventry and Warwickshire Chamber of Commerce, Business Ready, local Councils, business associations, or financial advisors/accountants.
​​
Fee Structure
CWRT does not typically pay fees to referral partners for leads.
How to Become a Broker or Referral Partner
At CWRT, we take immense pride in our rigorous due diligence process for brokers and referral partners. Each partner undergoes a thorough vetting process to ensure they meet our high standards of professionalism, transparency, and competence.
​
We evaluate their practices to confirm alignment with our core values and ethical principles, ensuring that their approach reflects the same integrity and commitment we offer to our clients.
​
Requirements for Brokers
Brokers need to be:
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Members of NACFB (National Association of Commercial Finance Brokers)
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Registered with the ICO (Information Commissioners Office)
​
Once approved, CWRT will obtain a signed 'broker and introducer' agreement from relevant parties prior to any engagement commencing.
​
If you're looking to understand how brokers and referral partners can enhance CWRT's reach, or you're interested in becoming a partner, Contact Us today for more information.
Brokers and Referral Partners
​
Community Development Financial Institutions (CDFIs), such as Coventry and Warwickshire Reinvestment Trust (CWRT), often rely on external partners to connect with potential borrowers. Two common types of external partners are brokers and referral partners.
​​​​
Brokers
​
-
Brokers act as intermediaries between the borrower and CWRT.
-
They are often more involved in the loan process, helping the borrower gather documentation, complete applications, and liaise with CWRT.
-
Brokers may present multiple financing options to their clients, not solely CWRT products.
​
Fee Structure
-
Brokers usually charge a fee for their services, which may be a percentage of the loan amount.
-
This fee might be paid by the borrower, CWRT, or both, depending on the arrangement.
-
CWRT pays a set 1% fee of the loan amount to the broker for a successful loan application.
​
Example: A broker assists a small business in securing a £100,000 loan from CWRT. CWRT pays the broker 1% commission fee of loan advanced, in a single payment after the Loan Agreements is signed, and funds are disbursed to the borrower. In this example, the fee is £1,000 based on £100,000 of the gross loan advance made.​​
​Referral Partners
​
-
Referral partners act as connectors, directing potential borrowers to CWRT.
-
They typically do not get involved in the application process or ongoing loan management.
-
Common referral partners include the Coventry and Warwickshire Growth Hub, Coventry and Warwickshire Chamber of Commerce, Business Ready, local Councils, business associations, or financial advisors/accountants.
​
Fee Structure
-
CWRT does not typically pay fees to referral partners for leads.​​​
​​​How to become a broker or referral partner?
​
At CWRT, we take immense pride in our rigorous due diligence process for brokers and referral partners. Each partner undergoes a thorough vetting process to ensure they meet our high standards of professionalism, transparency, and competence.
​
We evaluate their practices to confirm alignment with our core values and ethical principles, ensuring that their approach reflects the same integrity and commitment we offer to our clients.
​
Brokers need to be members of NACFB (National Association of Commercial Finance Brokers) as well as being registered with the ICO (Information Commissioners Office).
​
Once approved, CWRT will obtain a signed ‘broker and introducer’ agreement from relevant parties prior to any engagement commencing.
​
If you’re looking to understand how brokers and referral partners can enhance CWRT’s reach, or you’re interested in becoming a partner, Contact Us today for more information.
​
CWRT’s approach when engaging with Brokers and Referral Partners
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Fee Transparency: Ensure clear communication about who pays fees and how much they’ll be.
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Borrower Protection: Set reasonable caps on broker fees to maintain affordability.
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Partner Vetting: Evaluate brokers and referral partners for mission alignment and ethical practices.
CWRT work with several brokers and referral organisations who assist potential clients exploring funding options. This is not an approved list and any assistance that is provided with any of these brokers/referral organisations is done so through a direct arrangement between a potential client and broker/referral organisation.