Standby for the future
When done well, we have seen time and time again that a standby servicing contract is a starting point for mutually beneficial and long-term relationships. Firstly, it allows like-minded servicers and funders to get to know each other. If the funder finds a servicer whose approach they like, they will know who to call every time they fund a new lender.
Such a relationship can position the servicing partner to become a partner of choice, to give advice on the marketplace and even to help source new funding arrangements – all the time growing to understand the lender’s business while providing a reliable, easy to consume, backstop behind the scenes.