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EVO TIMES MAGAZINE Vol 2

DECEMBER 19


Welcome to our second publication of the EVO Times, hopefully you will find this version more informative than the first! We are working with the EVO Funder Partners to deliver a good balance of practical help and information but I guess this is still very much work in progress…………….. The timing of this issue is aligned with the imminent Meet The Funder Expo event scheduled for Monday 9th December in Birmingham when we will be looking forward to an afternoon of networking and an evening of festive cheer. This is an excellent opportunity to mingle with Funders and AFS colleagues alike. A fabulous vehicle for increasing knowledge and forging strong working relationships. The evening will end with one individual being crowned Xmas jumper winner of the year, although no doubt competition will be as fierce as ever. We look forward to seeing many of you then. Nick, Jus and Mike


Arkle Finance - speedy with a straight forward response FINANCE NEED: One of our brokers was contacted by an existing customer who required finance for a holiday lodge which their family wanted to use for the summer holiday which, at the time, was only two week’s away. The lodge price was £180,000. THE SITUATION: The broker immediately thought that the particular asset would be a good fit for Arkle Finance and trusted that with the given time constraints, the team at Arkle would be able to deliver. WHAT ARKLE DID: The broker supplied a detailed proposal supported by evidence that the customer was a long-standing owner of a very profitable business underpinned by a well-run bank account. The lend was approved subject to an inspection of the asset situated in a holiday park located in Wales. Because of the tight timescales, the Arkle team worked quickly to get the documents raised and to save time, our BDM offered to do the asset inspection in the meantime. THE FINANCE SOLUTION: A hire purchase agreement secured against the lodge and supported by the successful entrepreneur. A deposit of £18,000 (10%) was paid by the customer and Arkle financed the remaining £162,000 (90%) over an 84 month period. The rate to Arkle was 8.5% and the broker received a commission of £6,480 (4%).

We are looking forward to seeing you all at the Meet the Funder day on the 9th December In the meantime, please reach out to your regional contact or broker support to talk through any deals or anything else we can help you with. Stuart Hughes Head of Investec Asset Finance stuart.hughes@investec.co.uk 07889 405 926

Kevin Bint Broker Manager South kevin.bint@investec.co.uk 07557 162 960

Rob Emmison Broker Manager North, North West & Scotland rob.emmison@investec.co.uk 07969 835 514

Allyson Lee Broker Support allyson.lee@investec.co.uk 0330 123 9614 (Option 6)

Martyn Edwards Broker Manager South & South East martyn.edwards@investec.co.uk 07912 774 426

David Lavin Broker Manager North & North East david.lavin@investec.co.uk 07548 724 453

Sam Christofi Broker Support samantha.christofi@investec.co.uk 0330 123 9614 (Option 6)

Kilsey Walker Broker Manager South & South West kilsey.walker@investec.co.uk 07726 921 300

David Brownbill Broker Manager Midlands david.brownbill@investec.co.uk 07484 351 117

Investec Asset Finance plc is authorised and regulated by the Financial Conduct Authority for credit-related regulated activities (including hiring). Registered office at Reading International Business Park, Reading, RG2 6AA. Registered in England. Number 2179313.


Credit Underwriting at Aldermore An interview with Specialist Underwriting Team Leader - Rojen Amatya Rojen Amatya has been working at Aldermore for over 3 years and is based in the Reading office. He leads a team of 5 credit managers who review proposals and company financials to ensure the most positive outcomes for all cases. We asked Rojen to give us some insight to the Credit Underwriting world and what helps getting deals through.

Rojen Amatya Specialist Underwriting Team Leader T: +44(0)118 955 6847 E: rojen.amatya@aldermore.co.uk

Rojen, what is a typical day for you and your team? A typical day starts with reviewing the team’s deal queue and making sure they are prioritised so that we can process applications as fast as possible. Throughout the day I monitor the queue and field queries from the colleagues or brokers like the AFS ARs. I make sure urgent requests are distributed evenly amongst the team and approve transactions outside their mandates or where policy requires. The team analyses and underwrites proposals sent by our brokers, with deals covering a wide range of assets. I also have various administrative tasks such as Quality Control checking, and when it gets really busy I will start underwriting deals too!

Moving specifically on approving deals, how can brokers help maximise acceptance? To start with, all funders will have a certain limit for deals and risk, and Aldermore and AFS can work together to ensure we understand each other’s appetite. If ARs are unsure, Paul Richards, Tamara Hoffmann and Fran Pitts are always there to advise on specific proposals and to help you get a deal processed to the next stage. Then, the main element in our decision-making is to confirm the serviceability of debt. To help us with this process, accurate information is key and this is especially relevant for larger transactions where we generally require more details to support the application, such as a full set of financial statements, up to date MI, bank statements, proof of income, P60, Statement of High Net Worth (where applicable). This critical information is used to make our decisions, if there is any adverse information such as returned or unpaid items in the bank statements, then it is highly unlikely that we will have appetite for the deal. Therefore identifying any of these prior to submitting a proposal will help you determine straight away if this deal is for Aldermore and help us get to a decision quicker. Sometimes, unfortunately deals can’t be accepted – what would be some of the reasons for this? • Serviceability: not being able to show that the additional debt requested is serviceable from the financial statements and/or bank statements. • Size of transaction: sometimes the size of a deal or the risks in the transaction are considered too great for Aldermore to support, even if customers can demonstrate affordability and are creditworthy. This can also happen when existing and repeat customers reach a certain level of exposure with Aldermore that is too high. • Adverse information held against the customer: this is not limited to Credit Bureau searches and will include information found online which could be considered to be damaging to Aldermore’s reputation or not in line with our Credit Policy. • Non-policy compliant transactions, for which Aldermore has no appetite to support: e.g. finance leases for cars, Sale and HP Back in Scotland, Marine and Aircraft Finance, fur trade and other activities as set out in our Credit Policy. • Other reasons not directly related to credit risk: for example, where we are unable to determine where a High Net Worth Individual has gained their wealth from, or when information is withheld on a deal and is found at a later date by our Financial Crime Department. These criteria help inform our decision-making but, please don’t take no for a (final!) answer and feel free to call me to discuss further.

Get to know the Specialist Underwriting Team

Adam McCarthy T: +44(0)118 911 0371

Martin Thundercliffe T: +44(0)118 911 0836

Tiziana Mirenda T: +44(0)118 207 6387

Sophie O’Hara T: +44(0)118 955 6713

Rebecca Dove T: +44(0)118 955 6633

Italian and spicy foods are top of the menu for Adam, who loves Motosports and supports Manchester United, when he is not busy listening to his extensive collection of CDs!

Salt & Vinegar Crisps will get you Martin’s favours ! A hardcore Swindon Town FC fan, his love for travelling has taken him to 15 European countries … and counting !

Tiziana has a soft spot for Italian food and the All Blacks rugby team ! And she keeps active with skiing and hiking.

Sophie’s favourite food is Thai and she is not impartial to a good cup of tea ! She grew up supporting Bath’s rugby team and loves travelling, cars and cats.

Classic Sausage & Mash or Wagamama’s more exotic taste are the favourite of our “Mrs Hinch, Domestic Goddess” wannabe Rebecca.

FOR INTERMEDIARY USE ONLY Aldermore Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. (Financial Services Register number: 204503). Registered Office: 1st Floor, Block B, Western House, Lynch Wood, Peterborough, PE2 6FZ. Registered in England. Company No. 947662.

AF0144


Credit Guidance for ARs Rojen’s Top Tip to helping get your deal through - be curious 1.

If you were asked to lend £10,000 of your own money to the business you are about to propose, what questions would you ask and what information would make you comfortable that you will get your money back as specified in the finance agreement and without having to repossess the asset? Will you take the customer’s word for it – or do you want actual hard evidence?

2.

Understand the customer, their requirements and the rationale for doing a transaction: do the requested asset, amount, term and type of business make sense? For example: why would a farmer require a fit out for a café? Do they seek to diversify to support the farming business? If so, how do you explain this and make the underwriter comfortable that the transaction is supportable? Or, how can a small shop owner afford to buy a Ferrari?

3.

A greater deposit usually indicates a greater commitment on the part of the customer. This means the customer also has something to lose if the transaction goes wrong. However, just because a deposit makes the transaction asset secure, if the serviceability is not proven, the deal will not be approved.

4.

Having additional securities such as Directors Personal Guarantees or Cross Corporate Guarantees does not mean that the proposal will be approved.

And of course, if in doubt, please visit our website aldermore.co.uk/credit-guidance

Your go-to funder of choice Our Products

Our Assets

Our Team

With a broad range of products, we’re able to design funding solutions that meet your clients’ needs.

We fund assets of all shapes and sizes.

When you deal with Aldermore, we commit to supporting you however we can, whenever you need it. That’s why we have a number of specialists who can help secure funding for your clients.

• Hire Purchase (Fixed and Variable Rate) - we can structure repayment profiles to meet your clients’ requirements - including VAT deferrals. • Leasing - offers all the economic benefits of ownership with fixed rentals, plus the ability to extend the lease upon expiry or with preagreed asset disposal options. • Refinance - we provide refinance solutions for your clients by releasing cash locked away in their current assets. • Residual Value - we underwrite residual values from approved suppliers providing buybacks enabling us to deliver more structured transactions. • Soft Assets - we will consider soft assets up to a maximum term of 5 years. Subject to supplier approval. • Business Finance - offering a range of solutions including Invoice Finance and Commercial Mortgages.

At Aldermore it’s not one size fits all. We offer funding for a diverse range of assets, from tractors to turbines, ice makers to grinders. To find out more about the assets we fund, go to aldermore.co.uk/allshapesandsizes

• For all new proposals and additional information relating to existing proposals, please contact: E: proposals@aldermore.co.uk • To supply supporting information for KYC checks, please send to: E: KYC.Department2@aldermore.co.uk • Your dedicated New Business Originations specialist: Tannith Holman and Nahid Chowdhury E: keybrokers@aldermore.co.uk • For all new payouts please send to the payments team: E: newbusiness@aldermore.co.uk • For Docs incomplete (previously submitted payouts where some information was missing) please send to: E: docsincomplete@aldermore.co.uk

FOR INTERMEDIARY USE ONLY Aldermore Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. (Financial Services Register number: 204503). Registered Office: 1st Floor, Block B, Western House, Lynch Wood, Peterborough, PE2 6FZ. Registered in England. Company No. 947662.

AF0144


Cas e

#1

Re –finance of a La Ferrari. Customer already had ownership of this vehicle, unencumbered. Wanted to raise £500,000 against the car. Funds were being used to purchase an additional car from abroad. Advance was funded over 3 years with a balloon of £480,000 at the end of the term. Non Regulated, company accounts were provided at credit stage to show the dividend drawn by customer. 2 years tax returns were provided as a condition of sanction prior to pay-out. HNW statement signed by accountant at pay-out stage.

Stu d

#2

ies

New Rolls Royce Cullinan, costing £348,345. Car is the first SUV to be launched by Rolls Royce as well as their first all- wheel drive. Customer paid £100,000 deposit, and funded the balance over 4 years with a balloon of £113k. Non Regulated, fixed rate agreement. Customer provided 2 years tax return and statement of means for credit purposes. HNW statement signed by accountant at pay-out stage. £113k. Customer provided 2 years tax return and statement of means for credit purposes. HNW statement signed by accountant at pay-out stage.

kerry.stuart@metrobank.plc.uk

We are looking forward to seeing you all at the Meet the Funder day on the 9th December In the meantime, please reach out to your regional contact or broker support to talk through any deals or anything else we can help you with. Paul Cunningham Head of Quantum Funding paul.cunningham@quantumfunding.co.uk 07984 098 110

Kevin Bint Broker Manager South kevin.bint@investec.co.uk 07557 162 960

David Lavin Broker Manager North & North East david.lavin@investec.co.uk 07548 724 453

Lyanne Broomes Broker Support lyanne.broomes@quantumfunding.co.uk 0330 123 2798 (Option 6)

Martyn Edwards Broker Manager South & South East martyn.edwards@investec.co.uk 07912 774 426

David Brownbill Broker Manager Midlands david.brownbill@investec.co.uk 07484 351 117

Rebecca Jacobs Broker Support rebecca.jacobs@quantumfunding.co.uk 0330 123 2798 (Option 6)

Kilsey Walker Broker Manager South & South West kilsey.walker@investec.co.uk 07726 921 300

Rob Emmison Broker Manager North, North West & Scotland rob.emmison@investec.co.uk 07969 835 514

Quantum Funding Limited is authorised and regulated by the Financial Conduct Authority for credit-related regulated activities (including hiring). Registered office: Reading International Business Park, Reading, RG2 6AA. Registered in England Number (05416739). Part of the Investec group of companies.


Helping British businesses tackle industry issues After coming to Paragon for support when purchasing two aircraft previously, Aeros – the UK’s leading modular flight training academy - sought further support to purchase a flight simulator to be used for multi-engine training. With 100 students being trained over the next two years, Aeros Global’s efforts are helping to fill the current shortage of pilots in the commercial airline industry. Captain Paul Freestone, Executive Director at Aeros Global, said: “The standard of safety and training we offer is second to none and with a simulator, it means we are no longer weather dependent. So many people want to train to fly an aircraft so we want to keep growing over the coming years and Paragon is helping us to do that.”

Find out more at www.paragonbank.co.uk/aeros-case-study

1593-1 (11/2019)

07884 664 614

01372 824 363

aviationfinance@paragonbank.co.uk

www.paragonbank.co.uk/aviation-finance

We offer finance on an unregulated basis only. Paragon Business Finance PLC. Registered in England number 01497411. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ.

New Internal Sales Manager As you may already know I was appointed the new Internal Sales Manager for Asset Finance Solutions in September this year which I was very excited about. Since then I have made significant progress in terms of my personal knowledge, constantly learning new skills in addition to developing my existing skills I learnt whilst working in the Payouts team. A little insight into my previous expertise with PCF… I joined PCF Bank back in October 2017 where I started in the Payouts team. My time in Payouts was thoroughly enjoyable as I was working with people I have since developed great friendships with. After being in the team just short of two years I decided I wanted to broaden my knowledge. With this I was approached and asked if I would be interested in becoming an Internal Sales Manager. I jumped at the opportunity with open arms and I’m pleased to say I am enjoying my time in the new role. Since I have started as an Internal Sales Manager, I can honestly say working with Asset Finance Solutions is a pleasure, as you all know AFS has a vast geographical presence with many sales people, therefore it will take me a while to speak to everyone, but I certainly plan to do so. Over the last 3 months I have spoken to many new people I previously hadn’t communicated with whilst working in the Payouts team, and I look forward to working with you all and helping to get deals across the line.

Ella Fitzsimmons Internal Sales Manager


DISCOVER THE POWER OF REFINANCE Case Study Showcase Our examples give a rounded insight into how refinance can unlock the value of a client’s fixed assets allowing the equity tied up in them to be released.

Refinance to reduce monthly outgoings and preserve cashflow • • • • • • •

Customer: Plant Hire/Construction Asset: Fleet of Yellow Plant Product: Sale & HP Back Supplier: Settlement direct to finance companies Requirement: £800k v Valuation of £1m Terms: 3 + 48; Gross 9.2% Other: Existing Customer; Reasonable credit covenant

Refinance to fund business growth • • • • • • •

Customer: Hire & Sale of Access Platforms Asset: New & used assets (up to 3 years old) – cherry pickers, boom lifts, access platforms Product: Fixed rate hire purchase with VAT deferral Supplier: Known equipment supplier Requirement: £300,000 revolving line of credit Terms: 10% deposit over 36 months Other: Additional 5% by way of accelerated payments in 1st 12 months

Refinance to facilitate investment • • • • •

Customer: Farming co-operative Asset: Tractor units, milk trucks and milk tankers/ trailers (13 Assets) Product: Refinance (sale & hire purchase back) Requirement: Deposit to support investment in a new cheese making facility (£8m) Terms: £332,000, repayable over 48 months

Check out our case studies haydockfinance.co.uk/refinance/


Refinancing is an increasingly popular option for SMEs. It enables a client to use their existing hard assets to raise capital for a range of purposes... • • • •

Funding business growth Purchasing new equipment Facilitating management buy ins/outs Reduce monthly outgoings

Working Harder for You

A Wide Portfolio We provide funding for a comprehensive range of business assets with a long life such as... Buses and Coaches • Heavy Commercial Vehicles & Trailers • Cars and Light Commercial Vehicles (including Business Fleets and Car & Van Rentals) • Agricultural & Forestry Equipment • Yellow and Road Plant (Construction, Forklifts, Access Platforms, Cranes and Pavers) • Industrial Plant & Machinery

Our vast industry knowledge and attitude to lending means we work harder than most to find a way to refinance your deal. We are considered true experts in ‘story-book’ deals.

The above list isn’t exhaustive. We will consider funding any Business Critical asset with an inherent resale value. Please contact your broker manager for more details.

We also provide innovative funding structures including...

Information is Key

• • • • •

Crafting a comprehensive refinance proposal is key to helping us reach a decision quickly. The more client background you can provide plus details to why they require refinance has a huge impact on swiftly we can assess their business model.

Seasonal payments to match cashflow timing Balloon payments to reduce monthly outlay Vat deferrals up to 4 months Agree credit lines for multi-hirers Customer sub hire agreements

Timing is Everything We pride ourselves on providing ultra-quick refinance decisions. Our specialist team of under writers combine their expertise and creative funding experience to ensure a decision is delivered when you need it.

To help us assess the asset we will also require the following information • • • • • •

Make and model of the asset/s Year/s of manufacture Year/s of purchase Usage in terms of hours or miles Proof of original purchase Details of any finance outstanding on the asset (such as a settlement illustration)

Hire HirePurchase Purchase/ /Leasing Leasing/ /Refinance Refinance/ /Bespoke BespokeFunding Funding/ /Dedicated DedicatedSupport Support


The Hyatt Regency, Birmingham Monday 9th December

Hyatt Hotel Birmingham

#AFSMTF19

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Evo Times Magazine Volume 2  

Evo Times Magazine Volume 2  

Profile for afsuk6
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