Challenge the deal before the lender does

To kick off our monthly Q&A series, we sat down with Hiran, Credco’s Co-Founder & Director. Hiran spent more than twenty years in property finance before starting Credco, most recently as a Chief Risk Officer in the peer-to-peer lending sector, which means he’s spent more time on the lender side of the table than the broker side. That’s the angle behind almost everything Credco does. We asked him what most brokers get wrong, what a credit-strong deal actually looks like, and what the market is doing that the broker world hasn’t fully caught up with yet.

Why did you start Credco?

Too much of the broker market had become transactional. Brokers acting as introducers — pushing deals into the market without properly structuring them or understanding how lenders assess risk. From the lender’s side, we saw firsthand why deals failed. We wanted to build a brokerage that was more strategic, transparent and credit-focused. Sometimes that means challenging the client or restructuring the deal entirely, but preparation usually determines the outcome in specialist finance. We wanted to build a brokerage that lenders trusted as much as borrowers did.

What’s the biggest mistake you see brokers make?

Sending a deal to a lender before it’s been properly pressure-tested. Too often, the focus is on getting terms quickly rather than ensuring the structure, exit, and supporting information actually stand up to scrutiny. Lenders spot weak preparation almost immediately, and once confidence drops, it’s very difficult to recover. That ends up costing the client time, credibility and money. We’ve seen borrowers lose opportunities, miss completion deadlines, or pay more simply because the deal wasn’t correctly packaged the first time. In specialist finance, poor preparation is expensive. A good broker’s role isn’t just to place a deal — it’s to challenge the deal before the lender does.

What does a credit-strong deal actually look like?

Clear, coherent and easy to understand in the first few minutes. The lender should immediately know who the borrower is, what the asset is, why the funding is needed, and exactly how the exit works. The numbers stack up, the valuation is realistic, the build costs are well documented, and the borrower’s experience matches the project’s complexity. What lenders see day to day is often the opposite — incomplete information, vague exits, unrealistic timelines, or risks no one has addressed. Strong deals don’t have to be perfect, but they do need to show that the risks are understood and managed properly. That’s what gives lenders confidence.

How has bridging and development finance changed in the last three years?

Lenders have become far more risk-sensitive beneath the surface. A few years ago, liquidity was everywhere, and lenders competed aggressively on leverage and speed. Today, despite strong market activity, credit committees are looking much more closely at borrower quality, liquidity, contingency planning, and realistic exits. A lot of brokers still approach lenders as if it’s 2021, assuming leverage alone gets deals done. Now lenders want stronger sponsorship, proven contractor teams, sensible GDVs and clearer fallback plans. The market hasn’t fully caught up with how disciplined underwriting has become. Every lender will say they’re commercially minded — but the truth is they’re all restricted by the criteria of their funding lines. Recognising that is half the battle.

What separates a robust exit from a weak one?

A robust exit is evidence-backed, realistic and still works under pressure. Anyone can say they’ll refinance or sell units, but lenders want to know who will refinance it, on what terms, at what valuation, and what happens if the market softens or rates move. Weak exits rely on best-case scenarios; strong exits have fallback options. Before anything goes near a credit committee, we stress-test valuation assumptions, refinance affordability, timelines, contingency costs, sales absorption and borrower liquidity. The key is making sure the exit still works even if conditions become more difficult. That’s how lenders think.

One piece of advice for anyone before they speak to a broker?

Know your numbers better than anyone else in the room. Be clear about your costs, timelines, contingency, exit strategy and worst-case scenario before the finance conversation even begins. The strongest borrowers aren’t necessarily the wealthiest or the most experienced — they’re the ones who fully understand their deal. Lenders back confidence, preparation and credibility. All three are built long before the application is submitted.

More from Credco

Whether it’s bridging and development finance, auction finance, buy-to-let or business and tax liability funding — the work that earns its fee happens before the file ever reaches a lender’s desk. Meet the team or get in touch to talk through a deal.