NACFB - Commercial Broker magazine - Q2 2025

Issue 121 | Q2 2025

14 Rules of referral

36 Leading with loyalty

Raising the curtain Setting the scene for enhanced broker value

52 A change of plan

64 Opportunity spotting

In this issue

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Issue 121 | Q2 2025

NACFB news 4 6 8 10

Note from Jim Higginbotham Updates from the Association Note from headline sponsor: NatWest Industry news round-up

Patron profile 12 multifi: Technology and tradition

Compliance update 14 NACFB: The rules of regulated introductions

Ask the expert 16 Theodora Hadjimichael: Pillars of the community

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The big interview Cambridge & Counties Bank’s Jayne Follows on broker relationships, and leading with loyalty

Special features 18 20 24 26 28 30 32 34 36 40

Allica Bank: The right tools NACFB: Raising the curtain Lloyds: Good with finance Hilco Real Estate Finance: A dual mindset Ultimate Finance: Under control FOLK2FOLK: Overcoming hurdles BloomSmith: The VAT trap Invest&Fund: A seat at the top table The big interview: Cambridge & Counties Bank’s Jayne Follows Bluecroft Finance: Unblocking roadblocks

Industry insights 42 44 46 48 50 52 54

Shawbrook: The rental reset Haydock Finance: Building for tomorrow Together: Reinventing the wheel TAB: Bridging knowledge gaps TorFX: The silent profit killer Assetz Capital: A change of plan LHV Bank: Rent vs buy

Opinion & commentary 56 58 60 62 64 66 68 70

UK Business & Finance Solutions: The very many hats of a broker Unity Trust Bank: Looking beyond the bottom line Arbuthnot Latham: Property business boom Atom bank: Mastering the art Bibby Financial Services: Opportunity spotting LendInvest: The automation game The big five: Insights from the NACFB’s impact report Five minutes with: Funding Circle’s Rachael Raymond

NACFB 2025 Sponsors

The team behind the magazine Kieran Jones Editor & Feature Writer Kieran.Jones@nacfb.org.uk

Jenny Barrett Communications Consultant Jenny.Barrett@nacfb.org.uk

Laura Mills Communications Manager Laura.Mills@nacfb.org.uk

Sophie Olejnik Digital Marketing Executive Sophie.Olejnik@nacfb.org.uk

Amber Jane Roye Graphic Designer Amber-Jane.Roye@nacfb.org.uk

Magazine Advertising 0207 101 0359 magazine@nacfb.org.uk

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NACFB | Welcome

Seeing the value

J

ust like beauty, value is in the eye of the beholder. When your success depends on being valued by many different stakeholders it requires a deep understanding of each individual stakeholder to ensure you know what they truly value and deliver accordingly.

Jim Higginbotham Chief Executive Officer NACFB

For commercial finance brokers, that requires knowledge of the perceived value their SME customers gain from using their services together with a genuine understanding of the value a lender might attribute to the use of a broker.

The broker’s ability to charge a fair price for their services which reflects the perceived value received by both lenders and their SME customers is critical to the long-term success of the broker.

This is all very obvious you might say but now overlay an environment where technological advancement and AI tools are able to perform many operational and decision-based tasks much faster and more reliably than any human. Consider the fact that many SME borrowers are now of a generation where digital interaction is second nature and, in many cases, preferred to face to face dialogue. Throw in a few regulatory curve balls and an economic environment where competition is intense, and margins are thin, and things start to get a bit trickier.

Every participant involved in the process of matching an SME borrower with the most appropriate financial solution and lender is looking to deliver value to the SME customer in the most efficient way possible. Simultaneously, the definition of ‘value’ through the eyes of the SME customer is changing and as a community we need to be alert to these changes and respond accordingly.

Who knows where AI capability will take us in the next few years, but what seems clear to me is that those businesses that truly understand value through the eyes of their customers and can organise themselves to deliver it in the most efficient way possible will thrive and those that don’t may not.

Here at the NACFB we are acutely aware of our need to deliver value to our Members, Patrons and Partners and we continue to work hard to listen and adapt our services accordingly.

We have a great magazine for you this quarter and I hope you enjoy it.

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NACFB | NACFB news

Membership growth prompts NACFB team expansion

S

ince the start of 2025, the NACFB has welcomed six new starters to its head office team, increasing the headcount to 27 – making the trade body team the largest it has ever been.

The growth reflects the Association’s continued momentum and ensures it is well-resourced to deliver greater value to Members, enhance operational capability, and support long-term strategic goals.

Witnessing the largest intake, the compliance team has recruited three members: quality assurance compliance officer, Steven Downing; compliance support officer, Alison Easwarakumar; and, admin assistant, Dalal Aachoui.

All three report to head of compliance, Sarah Cunningham, who joined the business in 2024.

Commenting, Sarah said: “We have ambitious plans to build upon the momentum and progress we made last year in developing the Association’s Assurance Consultation Process. To achieve our plans, we require more hands

on deck and I’m delighted to welcome the new recruits to support our endeavours.”

team to support the strategic direction of the business.

The trade body’s membership team, led by Nicholas Murphy, has welcomed Sophie Law in the newly created role of commercial manager, alongside membership support officer, Anston Dsouza, taking the team’s total headcount to five. Together, they are already developing strategies to increase membership numbers across the nations and regions, with a particular emphasis on encouraging asset, leasing and business finance brokers to explore the benefits and support that NACFB membership brings.

The NACFB Board has also confirmed the appointment of two new directors. Angela Norman, interim managing director at NACFB Patron YBS Commercial Mortgages, joins as a non-executive Patron lender director and William Grove joins as an independent board director responsible for finance. Both individuals bring exceptional expertise and a shared commitment to the NACFB’s mission of championing professional standards and promoting sustainable growth within the commercial finance sector.

Welcoming the new recruits, Nicholas said: “We are working hard to get a better understanding of the entire commercial broker landscape across the UK. Sophie and Anston will be key to helping us on this journey of discovery.”

In 2024, the NACFB saw a record 15% rise in the number of Member firms, from 1,168 in January to 1,338 by year-end. The Association’s individual broker count grew by 14%, rising from 2,436 in January to 2,783 at the close of 2024. The number of commercial finance lenders becoming Patrons of the trade body also saw an uplift of 6%, from 153 to 162.

Most recently, John Canfield has been recruited to lead the NACFB’s finance team. He also joins the senior leadership

Key dates for 2025 NACFB Funding Future Growth: Supporting brokers across the North West: 14th May | Manchester | 09:30 – 13:00 NACFB Commercial Finance Expo: 11th June | NEC Birmingham | 09:30 – 16:30 NACFB Commercial Broker Awards: 19th September | Manchester | 13:00 – 19:00 NACFB Funding Future Growth: Supporting brokers across the South West: 8th October | Bristol | 10:00 – 13:00 NACFB Commercial Lender Awards: 27th November | London | 18:00 – 01:30 NACFB Funding Future Growth: Supporting brokers across the Midlands: 3rd December | Birmingham | 10:00 – 13:00

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8

NACFB | Note from our sponsor

The right solution Why access to financing is crucial to SMEs Dave Furnival Head of Broker NatWest

I

’ve often said that small and medium-sized enterprises (SMEs) are the critical piece in the UK’s economic puzzle.

A strong and resilient SME sector can determine the success of the economy and its ability to adapt and innovate.

have on UK businesses. Ultimately, tariffs often harm all involved and reciprocal tariffs imposed on US goods could also harm UK businesses, as many businesses that export are also importers.

How financing can support SMEs

There are over five million SMEs in the UK today, representing nearly 99.2% of the business population. They contribute 16.6 million jobs to the economy – over half of all private sector employment in the country, according to the Federation of Small Businesses (FSB).

Even in times of economic uncertainty, cash flow shouldn’t be a distraction for business owners. NatWest’s wide range of financing solutions can help provide a sound financial foundation on which they can operate – and by acting now, businesses can secure reliable cash flow as they navigate the future.

Investments in the newest digital tools, like artificial intelligence (AI) and Windows 11, are also essential for enhancing productivity and competitiveness in the current business landscape, and brokers can help SMEs access the funds needed to achieve these improvements.

But despite their significant role, SMEs’ risk profiles can mean they face hurdles in accessing the financing they need. Startups can face further challenges, some having little or no track record of revenue and sometimes only their ideas, in the form of intellectual property (IP), to determine their potential.

As well as up-to-date technology, successful businesses need skilled workforces and providing development opportunities for employees lets managers expand their teams and encourages staff retention. Additional HR, training and legal support from services like NatWest Mentor can be a valuable resource.

Understanding the financing that’s available in each unique situation and how it can be leveraged effectively is crucial, and brokers are the vital link between businesses and the diverse range of funding options available.

Access to the right financial solutions and support will be key to the future success of businesses up and down the country – and supplying SMEs with the knowledge and insight they need to make informed financing decisions will continue to be the primary job of brokers.

The effect of the economy Higher inflation and interest rates in the UK, coupled with new laws affecting employers, can impact a business’s ability to grow.

While the Bank of England (BoE) bank rate at the time of writing was 4.5%, NatWest economists believe we will reach a 4% BoE rate by the end of the year. The BoE’s more hawkish tone lately could signal an uncertain path in the coming months but if interest rates do continue to drop, an improved lending environment should give the market more confidence.

In terms of overseas trade, President Trump’s tariff proposals continue to evolve, and we must wait and see what effect this will

Access to the right financial solutions and support will be key to the future success of businesses up and down the country

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10 NACFB | Industry news

Industry news Trade war threatens financial stability

FCA cuts fees as retained penalty total doubles

President Donald Trump’s global trade war poses significant risks to the UK’s financial system, according to the Bank of England. The Financial Policy Committee (FPC) cautioned that “a major shift in the nature and predictability of global trading arrangements could harm financial stability by depressing growth.” The FPC is closely monitoring the situation, especially as private equity firms face heightened exposure to tighter financial policies. The FPC is conducting a stress test to evaluate how UK banks would respond to economic downturns, with results expected by year-end.

The Financial Conduct Authority (FCA) says that its annual funding requirement will increase by 3.8% to £783.5 million for 2025/26. Noting that it can “retain some of the enforcement costs incurred” before handing financial penalty revenues it receives to the Treasury, the FCA said these retained penalties are used to reduce fees and estimates that the amount it retains from fines will double to a record £70.5 million. This means total fees due to the FCA will fall by about 1% to £713 million.

Tariff uncertainty may ease mortgage rates

Data from Interpath shows that 330 businesses went into administration in the first quarter of 2025. While this marks an increase on the 321 recorded in Q1 2024, it is lower than the 337 seen in Q4 2024.

The advisory firm has warned that the number of UK companies going bust is set to “rise sharply” as businesses “grapple with the impact of new US tariffs on their organisations and the wider economy.”

Some lenders are set to cut mortgage rates after economists forecast that the Bank of England will cut interest rates by more than had been expected to avoid an economic downturn. Experts say the uncertainty stemming from new US import tariffs means the Bank is likely to reduce the base rate three times in 2025, having previously said two cuts were likely. Laith Khalaf, head of investment analysis for AJ Bell, said that while tariffs “might have created havoc in the stock market ... there could be a silver lining for UK mortgage borrowers.”

Government eases electric car rules The Government is taking steps to support the car industry by relaxing regulations on the transition to all-electric vehicles. Transport Secretary Heidi Alexander said the Government aims to “protect and create jobs” while maintaining its commitment to a 2030 ban on petrol and diesel cars.

Ministers plan to ease mandates on manufacturers, allowing smaller firms to continue producing petrol cars beyond the deadline.

Businesses in administration increased in Q1 2025

Finance industry makes slow progress on female representation

Services sector fuels economic growth

The financial sector is struggling to improve female representation in senior roles, with analysis showing that women working in finance held 36% of senior positions last year, up from 35% in 2023 and 34% in 2022.

The HM Treasury Women in Finance Charter report, compiled by New Financial, attributes this slow progress to factors like restructuring and hiring freezes. Dame Amanda Blanc, CEO of Aviva, described the pace of change as “frankly unacceptable,” emphasising that improvements are too gradual.

Research by BDO highlights the UK’s services sector as the “driving force” behind recent growth, despite challenges in other areas of the economy. The BDO Output Index recorded a rise in business output for the first time this year, with services contributing significantly.

However, the manufacturing sector has struggled, with the index dropping to its lowest since December 2022, exacerbated by trade policy concerns.

BDO partner Kaley Crossthwaite has called on ministers to support firms in the services sector and drive growth.

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12 NACFB | Patron profile

Technology and tradition A new approach to commercial finance Sunil Dial Director of Revenue multifi

T

he story of commercial finance in the UK is one of constant evolution. From traditional bank lending to the rise of alternative finance, each new chapter has brought both challenges and opportunities. Today’s transformation – the convergence of traditional lending expertise with modern technology – represents perhaps the most significant shift yet.

Our journey multifi was born from a simple observation: while the UK boasts a sophisticated lending market, many SMEs still struggle to navigate it effectively. Too often, viable businesses miss out on growth opportunities simply because they can’t find the right funding solution at the right time. This insight led to our mission: making commercial finance more accessible through technology while preserving the crucial role of human expertise.

A foundation of experience Our team brings together diverse expertise from both finance and technology sectors. This blend of experience allows us to understand both the complexities of lending and the possibilities of technology. Our leadership team includes veterans from major financial institutions alongside technology innovators who have scaled successful fintech ventures.

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Evolving with the market The relationship between brokers and lenders is changing.

Today’s brokers need more than just product information – they need partners to help them serve their clients more effectively.

That’s why we’ve focused on creating tools and processes that enhance rather than replace broker expertise.

Our approach automates administrative work, freeing brokers to focus on what they do best – understanding their clients’ needs and providing strategic advice. When brokers submit applications, our technology handles the routine analysis while our experienced team reviews the strategic aspects of each case.

The journey from application to drawdown We’ve streamlined the traditional lending journey through technology while maintaining crucial human oversight. Brokers can submit applications digitally, track real-time progress, and receive rapid initial decisions. However, every case benefits from personal review by our experienced team, ensuring we consider factors that might not be captured by traditional credit scoring.

Products and services Our flagship offering is a revolving credit facility that provides businesses with access to up to £350,000 in unsecured finance.

What sets our product apart is its simplicity and transparency – with no setup fees, fixed monthly fees of 0.3-0.5% of the credit limit, and clear interest rates (currently between 2.49-3.49% per 30 days on used funds). This revolving facility allows businesses to borrow, repay, and borrow again without reapplication, providing crucial flexibility for managing cash flow.

We serve diverse sectors, including business services, retail, wholesale, manufacturing, and distribution. Our platform particularly excels in supporting established SMEs looking to overcome cash flow challenges or secure finance for growth. We offer our most competitive rates for businesses which have been trading for more than two years with annual turnover exceeding £250,000, while newer firms with over £50,000 turnover can access modified terms tailored to their risk profile.

Looking ahead Several key trends are shaping commercial finance. Integrating open banking and accounting data makes it easier to assess businesses accurately. SMEs are becoming more sophisticated, expecting faster decisions and more flexible solutions.

Our development roadmap reflects these trends, with planned enhancements to our repayment terms and automated processes designed to help brokers better serve their clients.

The evolution of broking The role of commercial finance brokers is becoming more crucial than ever. As the funding landscape grows more complex, businesses increasingly need expert guidance to find solutions.

We’re seeing brokers evolve into true business advisers, helping clients with funding and strategic growth planning.

The future of SME lending Despite economic challenges, we remain optimistic about the SME sector. The UK’s entrepreneurial spirit remains strong, and businesses continue to adapt and innovate. However, access to finance remains a critical factor in their success.

Looking ahead, we see both opportunities and challenges. The continued digitalisation of financial services will make lending more efficient, but maintaining the human element remains crucial. The growth of embedded finance and sector-specific lending solutions will create new opportunities for brokers and their clients.

Success in this evolving landscape will depend on finding the right balance between technology and expertise. For brokers, this means embracing digital tools while providing strategic advice that clients value. For lenders, it means creating solutions that enhance rather than replace the broker-client relationship.

Our commitment remains focused on supporting brokers in better serving their clients. By combining technology with experience, we can help ensure that good businesses get the funding they need to grow and thrive.

SMEs are becoming more sophisticated, expecting faster decisions and more flexible solutions

14 NACFB | Compliance

The rules of regulated introductions When connections come with conditions

15 Sarah Cunningham Head of Compliance NACFB

C

ommercial brokers thrive on connections – introductions, referrals, recommendations, and chance encounters that can often spark the start of an SME client’s funding journey. But whilst introductions can open doors, they also walk a regulatory tightrope. Understanding the rules governing these interactions is crucial, as receiving a regulated introduction from a non-authorised source will mean the finance agreement can potentially be unenforceable.

An introduction can be as simple as passing a name and a phone number to a credit broker. It doesn’t matter if terms aren’t discussed, if details are shared with a view to helping a client access finance, that act could constitute a regulated introduction in the eyes of the Financial Conduct Authority (FCA).

Here’s a seemingly innocuous example: a van dealer sends you an email about a client who may need a loan. No recommendation is made, in fact no product is discussed – just an email is sent from the van dealer to the broker detailing the customer’s name and number. This action, this simple email, can trigger compliance obligations. The simplicity of the introduction does not make it exempt from regulation, and the informality of the exchange doesn’t reduce the responsibility it carries.

The scale of opportunity created through such introductions is significant. According to the NACFB’s latest impact report, over a quarter of broker-led lending last year stemmed from third-party introducers. Fellow brokers generate more than one-fifth of this activity, proving that trusted collaborations are a vital growth engine. But with that opportunity comes an equally important duty to get things right. Regulatory compliance here is not optional, and clarity around permissions is essential.

FCA permissions To introduce a regulated customer – including business customers who are exempt – to a regulated broker, you must either hold a secondary credit broking permission or be an Introducer Appointed Representative (IAR) of a principal firm.

Put simply, IARs are only permitted to introduce business to their own principal firm. Being an IAR does not allow you to introduce clients to multiple brokers. If an IAR does so, they, their principal firm, and the broker accepting the introduction would all be in breach of regulations. It’s also important to note that just because an introduction involves a loan that is more than £25,000 and is for business purposes, this does not automatically make it an unregulated activity.

Where a broker carries a full credit broking permission it’s important to understand that accepting the introduction might breach your Lender Introducer Agreement, as this introduction would be classed as broker to broker, which is prohibited by some lenders, especially in the asset finance world.

Non-regulated commercial brokers are not permitted to make regulated introductions to regulated commercial credit brokers. Doing so would breach FCA rules on regulated introductions.

A common misconception is that a long-standing relationship or a signed agreement between parties can resolve this – it cannot. No declaration, contract, or mutual understanding between

Whilst introductions can open doors, they also walk a regulatory tightrope

parties can override the regulatory requirements. If the introducer lacks the appropriate FCA permissions, the introduction is non-compliant, regardless of how it is documented.

There is, however, an exception: the professional firms exemption.

This allows certain professionally regulated firms – such as accountants or solicitors – to carry out limited regulated activities without needing FCA authorisation. These firms are not required to hold a secondary credit broking permission or become an IAR.

Compliance as a competitive edge Building strong, compliant relationships with introducers begins with due diligence. Brokers should always check that an introducer is authorised for secondary credit broking by consulting the regulator’s register.

From there, it’s good practice to complete onboarding checks and document the relationship through a formal agreement. A written introducer agreement isn’t just best practice – it can help define roles, set boundaries, and align expectations around data sharing, record keeping, and compliance standards. For NACFB Members, the Association offers pre-vetted introducer agreement templates via the Member portal to help simplify this step.

As ever, the NACFB stands ready to support its Members. Whether you’re reviewing existing relationships, formalising new ones, or unsure about the permissions required in a given case, the Association’s compliance team is available to guide you. Introducer agreements are just one part of a wider support package designed to help brokers navigate complex regulatory terrain with confidence.

So, the next time an introducer sends a client your way, it should be a moment of opportunity, not uncertainty. By verifying permissions, formalising your relationship, and seeking support when needed, you can turn every referral into a compliant, successful introduction.

16 NACFB | Ask the expert

Pillars of the community N

ot-for-profit Community Development Finance Institutions (CDFIs) support start-ups and viable small businesses that can afford to repay a loan but struggle to access the finance they need from traditional sources. We spoke to Theodora Hadjimichael, CEO of Responsible Finance, the national trade body for CDFIs, to learn more.

How does the CDFI approach differ from more traditional lenders?

They specialise in getting to know and understanding their applicants so they can say ‘yes’ when other lenders are unable to. They make decisions based on firms’ and business owners’ strengths and potential rather than because the ‘computer says no’. And they give tens of thousands of hours of free business support both before and after they offer finance.

CDFIs are brilliant at lending to entrepreneurs seeking smaller loans (which small businesses often find harder to secure), are flexible on security and look at business’ projections and quality of management in addition to credit score. They lend to almost all types of business including those which traditionally face higher barriers to securing funding, such as those located in disadvantaged areas or led by women or ethnic minority entrepreneurs.

Theodora Hadjimichael CEO Responsible Finance

What are the common misconceptions about CDFIs, and how do you address them?

Could you explain the significance of the Community ENABLE Funding (CEF) scheme?

Some people think CDFIs have limited funding and can only offer small loans but many CDFIs can offer substantial funding packages. While some focus on microfinance, others can provide loans of up to £250,000. The sector’s lending capacity continues to expand through partnerships with banks, government schemes, and impact investors.

While CDFIs lent £102 million to businesses last year, they have not always been able to access enough capital to meet demand. The British Business Bank’s CEF initiative is designed to unlock finance across the UK, particularly for small businesses, by delivering and catalysing capital investment into CDFIs. It aims to grow CDFI lending to businesses to over £500 million per year by 2029. The Department for Business and Trade will provide 100% of the programme’s funding – up to £150 million via the British Business Bank (BBB) – for CDFIs to lend to businesses over CEF’s first two years. In CEF’s second phase, the BBB will source additional funding from private sector investors to increase the amount of wholesale finance available under the programme.

Some people think the CDFI decision-making process takes longer but they can make decisions quickly using streamlined processes and innovative technology to complement their human-led approach.

There is a perception that CDFI interest rates are higher. CDFIs are significantly cheaper than many high-cost business lenders, although they may sometimes be higher than prime rates at traditional banks, reflecting the higher risk profile and additional support services provided. However, the total cost of borrowing should be considered alongside the added value of business support and flexible terms.

It’s worth noting that the sector’s lending capacity continues to expand through partnerships with banks, government schemes, and impact investors.

How can brokers effectively engage with CDFIs to better serve their clients’ financing needs?

They can develop valued relationships with their local CDFI and work with the provider to find affordable funding solutions. Brokers can also engage directly with Responsible Finance for data, resources and other educational material.

Call the New Business Team on 0800 470 0430 or email at newbusiness@assetzcapital.co.uk

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18 NACFB | Advertising feature

The right tools Building a business bank for the broker of the future Charissa Chang Head of Broker Sale, Commercial Mortgages (North) Allica Bank

V

ery little stands still in the world of commercial finance.

It’s why the day-to-day role of a commercial finance broker today is almost unrecognisable when I compare it to what it was like when I first entered the market over 20 years ago.

I often think that the expertise of a broker has never been more valuable

And the status quo continues to evolve. At Allica, one particular shift we’ve noticed is the evolution of what brokers offer to clients beyond their usual area of expertise. It’s something we’re actively tracking as we develop our proposition to meet the needs of brokers not just today, but two, five, and even ten years down the line.

While brokers have always prioritised service, the client-broker relationship has often been rather transactional. When a business owner was looking to purchase a property or refinance, they knew they could rely on their broker to find the best option for them. However, from the conversations we’ve had with our broker panel, we’re seeing that business owners are increasingly turning to their broker for more broad financial guidance, too.

The growing number of lending products now available to businesses for a whole range of needs is no doubt a driver of this. The rise of many fintech challengers has opened up a new world of innovative lending options for business owners, which is extremely welcome. But it’s also made the world of finance an ever more intimidating prospect for a business owner that just wants to get on with growing their business.

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Brokers are cementing themselves as a critical part of a business owner’s arsenal of expertise more than ever before

With such a wide range of options out there, I often think that the expertise of a broker has never been more valuable.

But it’s not just lending. We know our brokers are regularly getting asked for advice on other banking products, too. After a decade of low interest rates, we now have what many consider more akin to a new normal for base rate, which has led many business owners to look for ways to maximise returns on their hard-earned cash. While the growth of challenger banks means more and more are starting to think about switching bank accounts, too. Often the person they turn to for guidance is their trusty broker.

return on cash that may otherwise have been sitting idle. It’s designed to be rewarding for businesses, so switching can have a big difference on a company’s bottom line.

While many of our commercial mortgage broker partners have also supported their clients with other lending products, like bridging or asset finance, by leaning on the support of Allica’s specialist business development team.

The end result is that our broker partners have been able to develop their client relationships even further, while continuing to keep close control of them.

The bank’s role

A pillar of expertise for SMEs

This evolution of the broker role is a fantastic opportunity to deepen client relationships and add even greater value. One we know many of our broker panel have long been providing.

Following years of political and economic uncertainty and with an ever more complex funding market, business owners could have been excused for shying away from investment. Instead, brokers have again stood up to support businesses. In the process, brokers are cementing themselves as a critical part of a business owner’s arsenal of expertise more than ever before.

But it’s also a big ask. And, in our opinion, banks should be doing more to help brokers provide it. At Allica, our mission is to give established businesses the banking they deserve. By recognising just how key a broker’s expertise is to a business owner, the needs of brokers have to be central to this, too.

This means providing support and training directly to brokers to allow them to offer a broader range of products. In Allica’s case, often this will be by connecting you to someone within our bank with the right expertise, alongside providing the same service based on clarity, consistency and communication across our broker experience.

Many of our broker partners, for example, have recommended their clients to open a business current account with Allica, helping them get cashback on their card payments and a decent

Forward-thinking banks must follow suit and give brokers the tools they need to support their clients across a full range of banking needs. And you can be sure Allica will be up there among them.

Often the person they turn to for guidance is their trusty broker

20 NACFB | Special feature

Raising the curtain Setting the scene for enhanced broker value

21 Kieran Jones Head of Communications and Policy NACFB

F

or some years now, commission structures have played out behind something of a heavy velvet curtain, known but rarely seen in full view. Now, that curtain is rising, the house lights are up, and the audience – business borrowers, regulators, and lenders – can see exactly how the stage is set.

But this is no theatrical ending – far from it; instead, it could very well be an opening act for a more confident, transparent profession. From here on in, the brokers who step forward and own their value will take centre stage, whilst those who hesitate may risk becoming background players in their own industry.

Under the spotlight There’s no turning back now. Since October last year, the commercial finance sector has been operating in a landscape where commission disclosure is no longer a question of if, but how. Brokers are disclosing what they earn, and rather than retreating into defensiveness, now is the moment to stand tall, articulate value with confidence, and seek to redefine the conversation.

At the time of writing, the Supreme Court had yet to convene to bring much-needed clarity to the confusion left in the wake of the Court of Appeal’s ruling. That judgment threw up more questions than answers – muddying the waters around the scope of duties owed, the definition of vulnerability, and whether fiduciary responsibilities apply equally across regulated and unregulated contexts.

For too long, commission has been a term laden with ambiguity – often misunderstood, sometimes misrepresented. But is the real problem one of substance, or simply one of semantics? In professional

services, transparency around fees is the norm. An accountant doesn’t ‘earn commission’ for structuring tax efficiencies, nor does a solicitor ‘take a cut’ for facilitating a transaction. They charge a fee for their expertise, their time, and their ability to achieve an outcome that a client couldn’t secure alone. Why should commercial finance brokers be any different?

This moment should not be seen as a reckoning but as a watershed – an opportunity to reframe the discussion.

The focus must shift from the mechanism of how brokers are paid to the undeniable value they bring. We all know that a well-placed, well-structured deal is not simply a matter of matching a business to a lender; it is the product of honed experience, deep market knowledge, and the ability to navigate complexity that may otherwise be insurmountable for the client.

Business owners, by and large, understand the principle of paying for a service rendered. They engage professionals every day – accountants, legal advisors, consultants – each of whom is paid for expertise that enhances business outcomes. Brokers must lean into this reality. The value in securing finance is not theoretical; it is tangible. It is the difference between a growing enterprise and a struggling one, between a business securing vital funding and one being left at the mercy of the wrong lender on the wrong terms.

The real risk in this new era of transparency is not disclosure itself, but the industry’s response to it. In practice, borrower expectations are already evolving. One broker recently shared how a longstanding client, previously indifferent to commission details, asked for a full breakdown of fees before agreeing to proceed – not out of distrust, but because they’d been advised by their accountant to treat all advisory fees as part of a procurement decision. “It wasn’t a challenge,” the broker noted, “…it was a prompt to explain our value properly – and once we did, the deal moved faster.” Lenders, too, are adjusting. Several are refining their onboarding processes to ensure brokers

are better equipped to communicate pricing structures clearly, aware that reputational risk now flows both ways.

Transparency isn’t just a compliance box – it’s becoming a commercial expectation, baked into the broker-client-lender triangle.

If brokers hesitate, second-guess, or downplay their role, they risk allowing others – regulators, media narratives, and even competitors – to define their worth for them. Instead, this is the moment for brokers to own the conversation, to communicate their value with clarity and conviction, and to ensure that when a client sees the disclosed fee, they also see the expertise behind it.

New divides, new standards This new era of transparency won’t just shift perceptions – it will likely reshape the commercial finance landscape entirely. A clear divide is already emerging. On one side, brokers are stepping into the role of trusted advisors: embedding transparency into their client relationships, charging fees that reflect real expertise, and articulating the value they deliver with clarity and confidence.

These professionals will become indispensable – not just as access points to funding, but as strategic partners in a business’s growth journey. On the other side, brokers who treat disclosure as a tick-box exercise, clinging to vague justifications or hoping clients won’t ask too many questions, will find themselves increasingly exposed. As clients become more discerning and regulatory scrutiny intensifies, opacity is unlikely to

The focus must shift from the mechanism of how brokers are paid to the undeniable value they bring

22 NACFB | Special feature remain a viable business model. In this new environment, success will belong to those who lead the conversation – not those who hide from it.

So how do brokers more confidently lead that conversation? It starts with reframing the narrative – shifting from defensiveness about fees to a confident articulation of the service delivered.

That means being able to explain, in plain terms, how a deal was structured, why a particular lender was chosen, and what specific risks were navigated along the way. It means using case studies, testimonials, and data to show impact – not just effort. And it means embracing tools that promote transparency, from upfront fee disclosures to client dashboards that demystify the process.

In doing so, brokers can elevate themselves beyond intermediaries – becoming visible, valuable contributors to their clients’ success.

The brokers of the future So, what will the broker of the future look like? First and foremost, they will be a communicator – able to explain the nuances of deal structuring in a way that is compelling, clear, and confident.

They will no longer shy away from conversations about fees, but instead, lead with the value they bring. They will leverage data, case studies, and market intelligence to demonstrate their impact, ensuring that clients view them as strategic partners rather than mere intermediaries.

Technology will also play a defining role. The most successful brokers will harness digital tools to enhance transparency, streamline processes,

and provide clients with deeper insights. Platforms that offer real-time comparisons, fee breakdowns, and perhaps even lender performance data will not be seen as threats but as assets – mechanisms that reinforce the professionalism of brokers rather than undercutting them.

Perhaps most importantly, the broker of the future will be adaptable. As the industry moves towards greater alignment with other professional services, those who are agile – willing to rethink pricing models, embrace new ways of working, and refine their client proposition – will be the ones who set the standard for the next decade.

Who will take centre stage?

The answer is simple: those who evolve.

The commercial finance brokers who see commission disclosure as a threat rather than an opportunity may soon find themselves in increasingly difficult territory. Clients are likely to demand more transparency, lenders will seek greater alignment with best practices, and regulators will continue to push for clearer standards. Brokers who cannot articulate their value will be squeezed out – either by competitors who can or by technology that may render their role redundant.

So, the curtain is rising on a new era for commercial finance. The question now is not whether brokers will adapt, but who will seize the moment. Some will hesitate in the wings, uncertain, waiting for direction. Others will step forward, take centre stage, and define the industry’s next act. The audience is watching. It’s time to perform.

The brokers who thrive in a fully disclosed environment will be those who can articulate, with absolute clarity, the service they provide and the impact it delivers

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24 NACFB | Advertising feature

Good with finance Jonathan Wilcox Head of Commercial Banking Intermediaries Lloyds

Getting ahead of the sustainability conversation

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often hear that businesses view sustainability as a tricky topic. For some SMEs, the drive to net zero will be an integral part of their business planning, whereas for others, it represents a trade-off between other priorities. For us, it has become a key focus, and we’ve developed a range of support to help you stay on top of the subject, helping your everyday conversations, and providing your clients with the most relevant finance options upfront.

Whether it’s securing the right price, or building a complete credit risk picture, we’re seeing two common driving forces behind this growing demand. Partly driven by your clients’ customers, the supply chain is forcing businesses to consider their own action on reducing emissions. If any of your clients supply the NHS for example, any contract over £10,000 requires that business to have made a net zero commitment.

Another driving force is the need to cut costs and boost resilience. Increased costs in energy, combined with falling prices of common renewable tech, mean the payback time on energy-efficiency improvements are falling. Using less energy saves costs but also makes clients more resilient by helping to cushion the impact of any future price rises.

Opportunities for sustainable finance I believe we have a key role to play with supporting your clients with sustainability, and through our broker channel, we provide financial incentives for investing in environmentally sustainable assets and practices without affecting your returns.

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Clean Growth Financing Initiative (CGFI): offers 0% arrangement fee for green capital expenditure and investment across all sectors. Eligible category examples include sustainable new builds and retrofits, circular economy and waste, improvements in operational efficiency, pollution prevention and control, and clean transportation.

Buildings Transition Loan: provides 0% arrangement fee loans to incentivise investment in more energy-efficient properties,

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where single buildings must be EPC-A or EPC-B rated, and for multiple buildings, at least 75% of the loan value must be EPC-A or B-rated. The loan encourages investments that have the potential to lower energy and operational costs, whilst also reducing greenhouse gas emissions.

Green Asset Finance: provides discounted finance for green assets, in the form of a 25-basis points (0.25%) discount.

Currently, electric vehicles (EVs) and solar (PV) panels are eligible, helping businesses to reduce carbon and greenhouse gas emissions, improve energy efficiency, and promote environmental sustainability.

All these products will pay you at your usual rate and provide your clients with an incentive to invest in what’s becoming an ever-present feature of credit conversations, and broader customer and governmental expectations.

A commercial imperative By providing the necessary financial support for investment in sustainable practices and assets, we’re also supporting you, the most important element in all of this. Appreciating the demand for sustainability credentials could help improve your conversations and future-proof your clients’ businesses and make them more competitive.

That’s good for them, good for you, and good for the environment too.

I’d recommend you either speak to your local business development manager if you have one or call the team on 0345 901 3121 or email them at brokerdirect@lloydsbanking.com to learn more about the support available.

All lending is subject to status. £25,001 minimum transaction size applies to Clean Growth Financing Initiative and Green Asset Finance. Other eligibility criteria apply. MCOB regulated properties are excluded from the Buildings Transition Loan. Calls may be monitored or recorded.

Please note that any data sent via email is not secure and could be read by others. Lloyds and Lloyds Bank are trading names of Lloyds Bank Plc. Registered office: 25 Gresham Street, London, EC2V 7HN. Registered in England & Wales, no. 2065. Telephone: 0207 626 1500. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under Registration Number 119278.

Sustainable finance for clients (and you) Whether it’s financing a physical asset, or improving a building, we can provide your clients with financial incentives for investing in environmentally-sustainable practices, without affecting your returns.

That’s good for them (and good for you too).

Call direct on 0345 901 3121 or email us at brokerdirect@lloydsbanking.com

All lending is subject to status. Eligibility criteria applies. Calls may be monitored or recorded. Please note that any data sent via email is not secure and could be read by others. Lloyds and Lloyds Bank are trading names of Lloyds Bank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 2065. Telephone: 0207 626 1500. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under Registration Number 119278

26 NACFB | Special feature

A dual mindset Larger, more urgent bridging loans bring lenders new challenges Patrick Davenport Director Hilco Real Estate Finance (HREF)

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he UK bridge lending market is bimodal by nature, with brokers and their clients having access to many lenders either for deals smaller than £5 million or greater than £100 million.

Loans between these amounts are typically too large for most lenders who have constraints on capital, but also too small for the large global debt funds. Historically, this space has been occupied by the commercial finance divisions of the high street banks but as they have retrenched from the market and reduced their underwriting teams, a smaller number of specialist bridging finance providers have established themselves in their stead.

At the same time, market conditions over the last two years have provoked greater demand for urgent short-term financing in this space.

Distress in the market has produced acquisition opportunities for assets that have been ‘de-banked’ or where there is a struggling operating business. It has also created greater opportunity in the development exit space for larger residential schemes, where the housing market has softened and there is no headroom on the existing development funding to support a proper sales process.

However, these opportunities create challenges for lenders operating in this market as they need the ability to properly underwrite the value and liquidity of assets and determine whether assets are refinanceable in a higher interest rate environment. In effect, these lenders must now approach underwriting from both a bridging and a development angle.

When providing short-term stabilisation financing on an operating asset, for example, a hotel or an industrial estate,

the lender must analyse the opportunity as both a bridge lender and a term lender. This means getting to grips with the operating business, the value of the asset both vacant and with the business in place and producing accurate forecasts of how the business will be performing at the end of the loan.

Ultimately, with interest rates still high compared to fifteen years ago, and not predicted to fall meaningfully at any point in the next few years, we expect to see demand for larger, more urgent bridging loans continue to increase. This is partly because of the distress this causes to assets, but also, conversely, as a result of the acquisition opportunities this provides to outside parties.

Nevertheless, the challenges for lenders in this growing space are significant, as to properly underwrite the risks involved and unlock value for the borrower where others may not see it, they must have the capability and the agility, to quickly understand operating businesses, absorption rates, and many other factors that most bridging loans do not require.

That will require investment by lenders in specific expertise on their teams, and a change of mindset to take a more pragmatic approach to lending as well as the ability to act more swiftly to enable these increasingly urgent opportunities.

These lenders must now approach underwriting from both a bridging and a development angle

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28 NACFB | Special feature

Under control David Moran Senior Regional Director Ultimate Finance

Supporting SMEs to mitigate rising costs

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he increase in employers’ National Insurance Contributions (NI) from 13.8% to 15% announced during the Autumn 2024 Budget came into force on 6th April 2025. This, coupled with a 6.7% rise in the minimum wage introduced on 1st April, is set to place additional strain on UK businesses, especially those with high staffing costs.

Proactive steps businesses can take

The impact on businesses

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With many companies already facing rising operational costs, the new NIC and minimum wage thresholds will likely impact cash flow the most which could force many businesses to reconsider their cost structures to make up for the increase in overheads.

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The broad knock-on effect is likely to be a further dip in business confidence, especially after a sharp drop of -47 points at the end of the first quarter (CBI Business Optimism Index, January 2025).

I expect many firms will pause big decisions until there’s more clarity on how the economic landscape will settle.

In my experience, I’d expect uncertainty to last for at least two to three months while the UK economy adjusts to this new norm.

We are in a turbulent period, but UK businesses have a long track record of resilience. I’m confident we’ll see a more stable and optimistic outlook in the latter half of 2025.

There are practical steps brokers can recommend businesses take to mitigate the effects of the NIC and minimum wage increases and help ensure they are in a strong position to face the challenges ahead.

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Recommending they check client creditworthiness to ensure customers can pay, encouraging them to review and tighten credit control processes and have clear payment terms to minimise late payments.

Reminding them to keep open lines of communication with suppliers so that if cashflow becomes tight, delayed payments can be avoided.

Brokers can also discuss ways to protect against bad debt such as looking at debtor protection alongside an invoice finance facility.

Highlighting a review of pricing strategies could also be useful to decide if rising costs must be absorbed or can be passed on to customers to protect margins.

British businesses are resilient. We’ve seen it time and time again, and those that adapt quickly and secure the right financial support often emerge stronger. Brokers have a vital role to play in helping businesses implement the right financial strategies and position themselves for growth in the latter half of 2025.

How brokers can support businesses to ease the pressure One of the biggest concerns I’m hearing from business leaders is how to maintain liquidity while absorbing these increased costs. This is where brokers can play a vital role in supporting businesses facing these financial challenges, to navigate the complex landscape of business lending.

Brokers can work with their clients to identify the right financial strategy to unlock cash tied up in existing assets which could be the additional liquidity needed to help ease the pressure of these recent changes.

There are practical steps brokers can recommend businesses take to mitigate the effects of the NIC and minimum wage increases

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30 NACFB | Advertising feature

Overcoming hurdles How brokers can help SMEs navigate the lending landscape

Carlos Howard Head of Business Development FOLK2FOLK

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ME finance isn’t what it used to be. Bank lending to small businesses fell by £14 billion in 2023, and approval rates dropped to their lowest since 2014 (Bank of England).

Mainstream lenders are sticking to their rigid models, and for businesses that don’t fit the mould? It’s getting harder to access the funding they need.

Brokers are stepping up, helping clients navigate this tougher lending landscape. But knowing where to place a deal, and how to get it over the line, matters more than ever. At FOLK2FOLK, we see firsthand where deals hit roadblocks and, more importantly, how brokers can sidestep them.

Three common roadblocks 1. The ‘slow yes’

A delayed decision can be just as damaging as a ‘no’. When a business owner spots an opportunity, they need answers fast.

How to overcome it: • Know which lenders can provide indicative terms within 24 hours; • Work with lenders who prioritise direct access to decision-makers and can provide ‘on-demand’ credit reviews and decisions, cutting out unnecessary delays; • Ensure clients have the right documentation ready to avoid unnecessary back and forth.

2. Complex cases that don’t fit the ‘box’

Most lenders love a clean, simple case but in reality, it’s not always straightforward. Borrowers with multiple, diverse or unusual income streams, complex security, or unconventional structures often struggle to get a ‘yes’.

How to overcome it: • Work with lenders who are willing to see the merits of each individual deal. Lenders who can see the bigger picture and take a holistic view of the people, the business idea, the security, and all available income streams; • For clients with complex property structures (e.g., multiple titles or trust-held assets), identify lenders with a reputation for navigating this type of complexity; • Choose lenders offering flexible structures like interest retention periods to support cash flow particularly for new businesses.

3. Legal and structuring hurdles that slow things down

Even when a loan is approved, the legal and structuring process can stall a deal. Multiple titles, trust ownership, or unique security arrangements can lead to unnecessary delays if not handled properly.

How to overcome it: • Engage with lenders who are experienced in navigating legal complexities; • Ensure early conversations between the lender and solicitors to avoid surprises; • Work with lenders known to proactively case manage to keep deals moving.

Getting deals over the line together For brokers, the right lender isn’t just one that says ‘yes’, it’s one that’s committed to moving fast, understands the unique nature of each deal, and collaborates to put a deal together.

At FOLK2FOLK, we: • Provide indicative decision and costs within 24 hours; • Organise on-demand credit reviews as required to keep the deal moving; • Work with brokers to make the deal; • Typically provide funding within weeks.

Need to place a deal fast? Talk to us first via email at enquiries@folk2folk.com or via the phone on 01566 706960.

32 NACFB | Special feature

The VAT trap Nigel Smith CEO BloomSmith

Beware the nuanced VAT framework on mixed-use property

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ixed-use developments have emerged as an unexpected star within the UK’s property investment sector. The versatility of combined residential and commercial elements has seen the asset class rapidly shift from a specialist investment to a mainstream choice for shrewd investors.

This wave of mixed-use development favourability follows a combination of social and economic shifts. The post-pandemic changes to working habits have exploded demand for spaces that are adapted to how we live our professional and personal lives.

From gleaming new-build developments to converted historic properties, mixed-use properties are giving life to our urban centres, whilst also offering investors enticing dual-income opportunities. By investing in the combination of commercial and residential properties, buyers are provided with an in-built exposure to these changes in behaviours.

Appetite has grown for investments that ride interest rates and inflation volatility, and mixed-use properties feed this hunger.

Many investors are finding that diversification within a single asset offers both stability and strong yield potential.

This diversification sits well with certain lenders, however, beneath this promising surface lies a nuanced VAT framework that demands careful navigation. The crucial distinction lies in the treatment of residential versus commercial spaces, with the latter potentially subject to 20% VAT. The challenge for investors is carefully apportioning values between the VAT-applicable element and the residential remainder.

This process is important given that the VAT liability requires meticulous attention to detail as HMRC mandates a “fair and reasonable” split based on market values. For example, a

£2 million mixed-use property might attract VAT on only the commercial portion, but incorrectly apportioning the values could lead to unnecessary latent tax exposure.

Some inexperienced investors enter the purchase of a mixed-use property without recognising the VAT obligation. This creates a cash flow deficit at the point of completion when obviously cash flow is most crucial. Therefore, the importance of addressing VAT considerations at the outset of any mixed-use acquisition cannot be overstated.

This said, investors should not be put off from the value and ‘spread’ that mixed-use investments and developments can offer to a diversified portfolio for both domestic and international investors. For those considering entering this market, understanding HMRC’s regulation and the VAT registration and return processes is fundamental. Savvy brokers always ensure that clients are alerted to the issue and signposted to suitable help.

It is also a short-term cash obligation that, with the correct deal structuring, can be met without the need for secured lending.

As with many things, with proper financial planning and expert guidance, the complexities of VAT need not be a barrier to successful investment in this exciting asset class.

The importance of addressing VAT considerations at the outset of any mixed-use acquisition cannot be overstated

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34 NACFB | Special feature

A seat at the top table The rise of peer-to-peer lending and investing Alan Fletcher Partnership Director Invest&Fund

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othing evokes pearls of wisdom like a multi-decade ‘overnight success’. And the meteoric rise of the peer-to-peer (P2P) asset class has been just that. Its journey from just a disruptive idea to gaining its seat at the alternative lending top table has been one of continued turmoil and reinvention, so much so that its evolution can almost be defined in two eras.

Era one, a cause to fight for. The notion of decentralisation is a mainstay buzzword in the modern era of fintech discourse; however, back in the early days of our industry, it was more ideological than practical. The idea was to rip the guts out of the traditional banking system, to connect borrowers and lenders directly, and to maintain the same risk-return profiles.

This became the crash diet of the entrepreneurial frontier and was frequently unsustainable. As the cracks grew, there was no running away from what could happen in a world where inadequate risk management was rife; misaligned incentives prioritised growth over sustainability, and a concentration of liquidity challenges ultimately led to high-profile platform failures and comprehensive regulatory reform.

So, era two began – a peaceful coexistence of the old and the new. Platforms such as our own navigated through those early years by having the foresight to see the future of our sector wasn’t technology usurping institutional and banking models at any cost; it was to build something hybridised that could improve on elements of the old, to offer more. Operating hybrid models, where retail and institutional investors coexist, enabled institutional investors to drive forward business growth and

provide the stability of on-tap liquidity, with clients and partners in the space benefiting at the same level of returns and service.

One could argue that the essence of the early days of the disruptive movement has been diluted to a point where the mechanics are slowly being absorbed back into the very system the early innovators were rebelling against. You could argue further, in a world where institutional investors are dominating, retail participation will slowly dwindle out. However, the essence of P2P remains intact: platforms still facilitate loans between independent parties without assuming balance sheet risk; the core is still there; it’s just evolved to be more robust, older, and wiser; the teenage years have ended. And now the broker is part of the picture too.

Today, Invest&Fund has strong institutional ties with Homes England, among others. Fantastic partnerships like these allow P2P providers to assist a broader range of clients and serve a cause greater than just our own interests. In the battle to solve the housing crisis, P2P has, once again, become more significant than the sum of its parts, so the ideological motivation may never go away after all. We are still out here fighting for a cause; it’s just been reinvented to serve a different, more practical purpose.

The essence of P2P remains intact: platforms still facilitate loans between independent parties without assuming balance sheet risk

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36 NACFB | The big interview

Leading with loyalty Jayne Follows on Cambridge & Counties Bank, broker relationships, and a career built on service

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ayne Follows arrives at the NACFB head office with purpose – straight-talking, sharp, and refreshingly down-to-earth. As head of real estate finance at NACFB Patron Cambridge & Counties Bank, she’s spent decades navigating the complexities of UK lending, and she brings that experience to every conversation. No frills, no pretension – just clear insight and a firm belief in the power of relationships.

Her leadership in the sector hasn’t gone unnoticed. Last year, she was the worthy recipient of the Leadership Award at the NACFB Commercial Lender Awards – a recognition of her commitment to the industry, her team, and the brokers she works with. It’s an accolade she takes in her stride, preferring to focus on the work rather than the recognition, but it speaks volumes about the respect she’s earned.

She’s on her way to a lender Patron sponsors’ lunch near Tower Bridge, where she’ll sit down with industry peers to discuss the state of broker-led SME lending. But before that, she’s carved out time in her busy diary for a conversation – one that promises to be as candid as it is engaging. “I’ve got my garden shed office back home – complete with a dodgy heater,” she jokes, her Worksop accent unfiltered and familiar. Between sips of coffee and biscuits, she shares her pride in her growing family – two new grandchildren in three months – before seamlessly shifting into a discussion on leadership, the market, and the values that have defined her career.

Practical, driven, and deeply committed to the people she works with, Jayne doesn’t waste words or time. Our conversation covers everything from her career path to the role of brokers and what makes a specialist lender stand apart. But at the heart of it all, her focus remains clear: loyalty, dedication, and making a real difference in the industry she knows so well.

Jayne, let’s start with your career. How did you find yourself in commercial and real estate finance?

I took the traditional banking route – started at NatWest, moved through different roles in sales, retail, and commercial spaces. I was one of the first premium banking managers back in the day, then headed one of the largest retail units in my region. Then I got a knock on the door from Salt Finance, who were setting up a new division. They invited me for a coffee, and because I’m nosy, I went! That meeting changed my path. Within eight months, I was promoted to regional manager.

Then the crash came, and Nationwide took over. I ended up in restructuring, which was probably the hardest but most formative time in my career. You learn a lot about people when they’re in distress. It taught me that finance isn’t just about numbers – it’s about relationships, communication, and trust.

Your career path hasn’t exactly followed the conventional blueprint. How has that shaped the way you lead and what you look for in people?

I’ve always believed that careers aren’t about ticking off steps in a structured order – it’s about taking the opportunities that come your way and making them count. For me, that’s meant working in different sectors, taking on challenges I wasn’t expecting, and at times, stepping into uncertainty. That’s given me a strong sense of loyalty, service, and dedication – things I look for in the people I work with. Whether it’s my team or the brokers we partner with, I value those who don’t just do their job but take ownership of it.

I say this to my team all the time – you don’t get anywhere by just keeping the seat warm. You have to bring something to the table, make a difference. And I always notice the ones who do. I don’t need people to be perfect; I need them to be present, committed, and honest. If you make a mistake, own it.

If you don’t know something, ask. But never just go through the motions, because that’s not how you build a reputation. And in this industry, your reputation is everything.

And now, as head of real estate finance at Cambridge & Counties Bank, what’s your leadership style like?

I’d say it’s about understanding what motivates people. You can’t lead everyone the same way. Some need confidence, some need challenge, and some need space to grow. I do get called the ‘mother hen’ of the team – but I see that as a positive. My job is to build people up, not hold them back.

The bank has been expanding rapidly in real estate finance.

What’s driving that growth?

We have a clear growth agenda, but we stay true to our values.

We’re a specialist lender, meaning we can be more flexible and dynamic than the high street banks. We take a relationship-driven approach, working closely with brokers and borrowers to tailor solutions rather than just offering an off-the-shelf product.

We’re also investing in our people – some of our recent promotions show that we believe in nurturing talent. Our corporate team, for instance, is made up of ex-colleagues from my Nationwide days. They’ve seen tough markets, they understand resilience, and they bring that experience to our borrowers.

What challenges are you seeing in today’s lending market?

One of the biggest challenges is the widening gap in customer and broker expectations. Some want full tech-driven solutions, while others want personal relationships. It’s about offering

38 NACFB | The big interview

choice. We’ve also seen changes in lease terms and valuations – yields are shifting, and valuers are cautious. That’s where our flexibility comes in; we’re taking a more holistic view, working with brokers to structure deals that actually work for clients, rather than forcing a one-size-fits-all approach.

You say valuers are being more cautious. How is that impacting deal pipelines?

It’s certainly made it more complex. Valuers are hesitant to pin down numbers because of market volatility, so brokers and lenders have to work harder to justify a deal’s structure. It’s why relationships matter so much. If you have trust in your broker and lender, you can navigate these challenges together, rather than seeing it as a roadblock.

From your perspective, what makes a great broker?

A great broker is one who really understands their client’s needs.

It’s not about just securing the highest loan possible – it’s about finding the right deal. The best brokers package their deals well, do their due diligence, and communicate transparently with lenders. They don’t just pass a deal over and hope for the best.

Transparency is a big part of any strong lender-broker relationship. How important is it for brokers to present a full picture upfront?

It makes a huge difference. I always say my nose starts twitching when something doesn’t quite add up. Most brokers we work with are excellent, and they know the value of getting all the details right from the start. But sometimes, things get missed – not always intentionally, but because deals can be complex.

My advice is always to be upfront. If there’s an issue, let’s get it on the table early so we can work out a solution together. That way, we avoid unnecessary delays and make sure the borrower gets the best possible outcome.

And misconceptions? What do brokers often get wrong about Cambridge & Counties Bank?

Some think we’re expensive, but we price based on risk and value. Others assume we only handle complex deals, but that’s not true – we do straightforward transactions as well.

Ultimately, we’re about building long-term relationships, not just one-off deals.

And what’s ahead for Cambridge & Counties Bank in 2025?

Deepening relationships with brokers and borrowers, simplifying processes, and improving speed of delivery. We’re also refining products based on market needs. And, of course, investing in our people – because at the end of the day, a bank is only as strong as its team.

And what about you personally? What motivates you?

Making a difference. Every day, I want to feel like I’ve helped a customer, broker, or colleague. My parents were my biggest influences – my sister had severe disabilities, and my parents fought for every opportunity for her. That instilled a deep sense of resilience and purpose in me. I want to leave things better than I found them.

Outside of work, how do you use your non-work time?

Family. I’ve just become a Nana – two grandkids in three months! And travel. I don’t do sitting still. Costa Rica, Borneo, South Africa – anywhere I can see wildlife and experience something new. Life is too short not to explore it.

As we wrap up, Jayne drains the last of her coffee and checks the time. “Right, I best get going,” she says, ever the professional.

But before she heads out, there’s one last flash of that warm Northern humour. “If anyone ever says finance is just about numbers, tell them they’re wrong. It’s all about people.”

And with that, she’s off – to a lunch where, no doubt, her voice will be one of the strongest in the room.

40 NACFB | Special feature

Unblocking roadblocks How to avoid valuations and legals hindering bridging applications Ross Gandy Head of Sales Bluecroft Finance

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hen talking to stakeholders in the world of bridging finance, the two biggest challenges identified by brokers that hamper the loan application transaction process are valuations and legals. As a lender operating in the bridging finance space, we see the disruption that these processes can cause. This article is aimed at helping brokers understand the challenges and how to alleviate them.

Valuation delays When applying for a bridging loan, the time it takes to receive the funds is always vital to the borrower. Unfortunately, getting a valuation can take days, sometimes weeks, which causes massive headaches for everyone involved. Even when a valuation report does arrive, that’s not necessarily the end of the story; it can throw a spanner in the works.

For example, properties in rural and remote locations might prove hard to value because there are fewer properties of a similar ilk that can be used as a comparison, which could lead to a lower than expected valuation. Before you know it, it’s been ten days, and the borrower is still at square one.

Top tip: To speed up the valuation process, ensure your lender has access to several valuation panels, and can work with valuers directly. Even better, work with lenders who offer AVMs (automated valuation models) or desktop valuations – this could save you and your client weeks.

Valuation disappointments For a variety of reasons, we regularly see valuations come in below the client’s expectations: • •

Clients being overly optimistic about the property’s value; Incorrect information being given about the property;

• •

The property is not as described; Clients not realising that the lender uses 90- or 180-day valuations, rather than open market value (OMV).

Top tip: As the broker, you should speak to the lender on day one to determine all the options available. Is there additional security that can be utilised? Can the lender take a second charge on other properties? Essentially, you should work with your lender to prepare a Plan B. Most importantly ensure that accurate information is provided, so that the lender can appoint the most appropriate valuer to obtain the right valuation quote.

Legal delays Borrowers, brokers and lenders alike have all been frustrated by legal delays which are often caused by outstanding information and documentation, and the time it takes going back and forth keeping all parties in the loop.

Top tip: Brokers should speak to the lender and work with them as early as possible. It’s vital to signpost any issues and anything that might come out later down the line; highlight it early so you can work with the lender to find a solution. Also, ensure your client has appointed a solicitor that specialises in bridging finance. If you don’t know one, ask the lender for a recommendation or suggest a specialist law firm that is an NACFB Partner.

You’ll notice a theme to the top tips: speak to the lender as soon as possible, review their panel, be proactive in getting the required documentation as early as possible and the more security the better!

Brokers should speak to the lender and work with them as early as possible

Full

team

ahead

As the biggest bank for businesses in Britain, we’re the proud winners of the Service Excellence Award at the NACFB Commercial Lender Awards 2024.

And investing in our team means we can carry on supporting you and your customers. We’re always ready to do business and are open to deals of any size.

Want to talk to us? Get in touch at brokerteam@natwest.com

NatWest Group is the UK’s biggest bank for business. Source: MarketVue Business Banking from Savanta, YE Q3 2024.

NACFB Service Excellence Award 2024 (NatWest) – NACFB Commercial Lender Awards 2024.

42 NACFB | Industry insight

The rental reset Reimagining the PRS in a post-crisis market

Emma Cox Managing Director of Real Estate Shawbrook

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his year marks an important year for the property market. The UK has been in the midst of a housing crisis for some time, and significant overhaul and reform is needed to kick start progress and enable transformation.

The new government has placed housing firmly on the agenda, with the ambitious target to build 1.5 million new homes and commitments to introducing much-needed planning overhauls making up key elements of the strategy to deliver new housing.

However, whilst ambitious, it’s clear that a multi-pronged approach to housebuilding is required to enable real progress – and the private rented sector (PRS) will have a key part to play in shaping the property landscape. The PRS is still adapting to the challenges of higher interest rates, the Renters’ Rights Bill and the cost of improving Energy Performance Certificates (EPC).

Addressing demand and meeting targets The PRS makes up a considerable chunk of the housing landscape. According to the most recent government English Housing Survey amongst the rented sectors, there are approximately 4.6 million private rented households in the UK. Such large demand has, for a long time now, continued to heavily outweigh quality supply. As house prices remain high and key incentives such as stamp duty thresholds for first-time buyers are lowered, there’s a growing possibility that increasing demand will put further strain on the PRS – unless housebuilding accelerates rapidly.

Professional landlords play a crucial role in tackling this issue.

Despite challenging economic conditions in recent years, structured portfolio landlords have remained agile – expanding their portfolios, investing in new properties, and meeting demand. With homeownership remaining out of reach for many, it’s essential that landlords can provide quality rental homes as a viable solution.

Given the ambitious housebuilding targets, reducing incentives for first-time buyers could slow progress, particularly as they account for the majority of new-build purchases. As a result, factors like Build to Rent (BTR) could play a vital role in the housing market. BTR investment has been growing rapidly in the UK, and professional landlords should be recognised by the government as key partners in supporting housebuilding efforts. With the ability to expand their portfolios and deliver high-quality rental homes, they are well-positioned to help meet these targets.

Evolving property types Another key benefit of the PRS is the ability to supply a range of asset types to meet rental needs – a trend that has accelerated over the past couple of years.

Property types, such as houses in multiple occupation (HMOs) have become ever more popular as tenant requirements shift and provide flexibility for both renters and professional landlords. Semi-commercial property has been on a similar trajectory as it provides the ability to offer stronger yields but also make use of many urban spaces which may not have otherwise been used for residential purposes. In fact, Shawbrook’s own data shows professional landlords demonstrated a clear appetite for diversification. As a

43

proportion of all applications submitted, semi-commercial purchase applications rose by 31% year-on-year. These figures highlight a growing trend towards higher-yielding investments within the sector, which will ultimately provide a wider range of properties for renters.

Navigating regulation Despite its benefits, the PRS is not without challenges. Issues such as affordability, security of tenure, and housing quality have led to increasing calls for regulatory reform. The proposed Renters’ Reform Bill aims to introduce key changes, including the abolition of Section 21 ‘no-fault’ evictions, the introduction of a national landlord register, and a focus on improving housing conditions.

The Energy Performance Certificate (EPC) changes set for 2030 present significant challenges and come with considerable

The PRS is not just a temporary fix – it’s a long-term solution that, when properly managed, can offer security, investment growth, and a vital housing alternative for millions

costs. Landlords will likely bear the bulk of these expenses to upgrade properties, ensuring higher standards for both renters and potential future buyers.

While increased regulation is essential to protect tenants, it is equally important to ensure policies support continued investment in the sector. However, many professional landlords may feel that recent measures have made it more challenging to operate sustainably.

Striking the right balance between tenant protections and landlord incentives will be crucial in maintaining a healthy PRS. After all, a lossmaking landlord is not likely to supply the quality accommodation that tenants need.

What lies ahead?

Amongst the current challenges, economic uncertainty and government targets, the PRS will remain a cornerstone of the UK property market. To fully unlock its potential, policymakers, investors, and professional landlords will need to work together to create a fair, sustainable, and well-regulated rental PRS. By expanding BTR developments and incentivising professional landlords, whilst ensuring tenant protections and security, the PRS can continue to provide affordable, high-quality homes while easing the strain on social housing and homeownership, and – crucially – bring ambitious targets to fruition. In a rapidly evolving housing landscape, the PRS is not just a temporary fix – it is a long-term solution that, when properly managed, can offer security, investment growth, and a vital housing alternative for millions across the UK.

44 NACFB | Industry insight

Andy Taylor

Building for tomorrow

Sales Director Haydock Finance

Strategies for business success in 2025 and beyond

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ith emerging technologies, growing environmental concerns, and shifting customer expectations, businesses that remain flexible, act responsibly, and innovate will be the ones that thrive in the years ahead.

Here’s how businesses can set themselves up for success in 2025 and beyond.

Adaptability: The key to staying competitive The ability to adapt is crucial in today’s fast-paced world.

Technological advancements and shifting market demands require businesses to be agile and responsive. Hybrid working models are now a key part of business operations. Companies are recognising the importance of offering flexibility to employees while maintaining productivity.

sustainability will not only make a positive impact on the planet but also build stronger customer relationships with those who value ethical business practices. As demand for sustainable products grows, businesses that act now will be better positioned to retain loyal customers and lead their industries.

Employee wellbeing: A focus that pays off Looking ahead, prioritising employee mental health and wellbeing will become essential. The pressures of modern work and life have taken a toll, making it important for businesses to support their teams. A healthy, happy workforce is more productive, engaged, and loyal to the company.

To thrive, businesses must prioritise digital transformation, streamline operations, and stay connected with both employees and customers. Cloud services, collaboration tools, and online platforms are becoming vital in building strong relationships and working efficiently. Those that embrace these technologies will be better equipped to handle the uncertainties ahead.

Supporting wellbeing goes beyond health benefits – it’s about fostering a work culture that values balance, flexibility, and open communication. Offering flexible working hours, mental health support, and wellness initiatives will be crucial in the coming years. By investing in employee wellbeing, businesses can foster a culture of trust and loyalty, which will not only increase productivity but also strengthen the brand’s connection with customers.

Sustainability: A strategic advantage

Innovation: Staying ahead of the curve

Sustainability is no longer just about doing the right thing for the environment – it’s also a powerful driver of business success. As environmental concerns grow and consumer demand for ethical products increases, businesses that integrate sustainability into their operations will stand out. Whether reducing energy consumption, minimising waste, or supporting sustainable supply chains, eco-friendly practices continue to be important.

With technology evolving rapidly, businesses must stay proactive in adopting new tools and solutions to stay competitive.

Whether through artificial intelligence, automation, or big data, innovation drives efficiency, enhances customer experiences, and accelerates growth.

At Haydock Finance, we’ve seen increasing numbers of SMEs eager to adopt more sustainable practices, and we’re proud to support them in this journey. Businesses investing in

Innovation isn’t just about adopting new tech; it’s about cultivating a mindset of continuous improvement. Businesses that lead the way will be those that not only respond to change but actively drive it through research, development, and boundary-pushing solutions.

Reliance Bank wins

Community Lender of the Year Award from NACFB

Reliance Bank prioritise business lending to organisations that deliver positive social impact in the UK.

We have a specialist understanding of the following key sectors: Community Faith Healthcare Social Housing

We provide: Loans for refinancing Loans for business acquisition Loans for property purchase Loans for refurbishment Loans for business expansion

We outperform high street banks for customer satisfaction In the 2024 Charity Finance Banking Survey, Reliance Bank achieved first place for Relationship Management.

Hover your phone's camera over the QR code to read about our Business Loans.

Helping good people do great things with money Power to change lives for the better Reliance Bank has been at the forefront of socially responsible banking since 1890, when we were formed by William Booth the founder of The Salvation Army.

Reliance Bank aligns its lending practices to the United Nations Sustainable Development Goals (SDG’s) – a global framework for governments, businesses and societies to help reduce poverty, protect the planet’s future and improve lives.

Reliance Bank Limited. All rights reserved. Registered in England. Registration no. 68835. Registered Office: Reliance Bank Limited, Faith House, 23-24 Lovat Lane, London EC3R 8EB United Kingdom.

Reliance Bank Limited is authorised by the Prudential Regulation Authority and regulated by the Prudential Regulation Authority and the Financial Conduct Authority.

46 NACFB | Industry insight

Reinventing the wheel How the UK rental market is evolving

Michelle Walsh Head of Intermediary Sales Together

I Students will be flocking to university in September and competing to find a place to live, so landlords who can provide it will surely find success

t’s no secret that landlords have faced numerous challenges over the past few years, and announcements from the government on stamp duty, renters’ rights and EPC regulations pose a whole new set of issues. We have seen amateur landlords exit the market in droves, prompting concern for the UK rental market.

However, many are still finding success by adapting their strategy. Whilst some have reduced the volume in which they used to invest, many have been exploring different types of property to remain profitable.

Some landlords seeking greater yields have pivoted away from standard residential property and invested in houses in multiple occupation (HMOs), multi-unit blocks and holiday lets. We expect to see HMOs in particular continue to gain popularity, and not just in the capital. Lendlord’s recent HMO Data Analysis report found that though Greater London still tops the market, an increasing number of investors are turning their eyes northward.

In fact, it was found that the North East can achieve the highest returns of 15.4%.

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Another area that many are turning to is student housing. There is a huge shortage of student homes across the UK, with one student accommodation platform predicting a shortfall of 490,000 beds by 2026. We have seen a lot of our customers exploring the value of such properties, and they are thinking bigger than the stereotypical ‘student digs’. Today’s young academics are looking for modern buildings, filled with the latest technology, communal spaces such as gyms, and onsite shops for convenience. Students will be flocking to university in September and competing to find a place to live, so landlords who can provide it will surely find success.

Lenders continue to support the sector. Some are supporting affordability by allowing rental income to be supplemented by earned income or from other rental income. There has also been an increase in automated valuation technology to reduce costs to the borrower and improve completion times.

The government has been making a lot of noise about social housing, and it’s not surprising considering its recent research found that more than 1.3 million households are currently on a local authority housing register. Labour’s promise to build more homes is welcome, but we strongly believe that for-profit social housing companies will play a huge part in alleviating some of the existing pressures. The demand is there, and landlords who can provide social housing could not only help those in need, but also achieve a strong profit.

This year and beyond, brokers need to be able to cater to these landlord clients, and those that fall behind in their knowledge of specialist finance will likely lose business to those able to serve a wider variety of profiles.

Looking beyond 2025, we are likely to see continued investment into HMOs, student housing and social housing. Before the new stamp duty rules kick in on April 1st, we will probably see a flurry of activity from buyers and sellers trying to beat the deadline, but essentially there is still a strong demand for rental properties and those landlords who find ways to adapt and diversify their offering will thrive.

Geographically, we are likely to see a shift. According to property investment specialists UOWN, there has already been a trend of landlords and investors beginning to move northwards in search of lower property prices and greater yield, and this is likely to increase. Manchester, Liverpool and Birmingham are all areas experiencing growth and attracting investment, so the next few years will be exciting for them. We’ll see resilient investors continue to adapt by purchasing in regional towns and cities where property is cheaper, to mitigate their risks and reduce the amount of stamp duty they need to pay.

In summary, the buy-to-let sector continues down an uncertain path, but it remains essential for a functioning housing market.

There will be good opportunities for strategic professional investors to gain healthy returns both in terms of rental and capital growth.

It’s essential to stay up-to-date and educated on products and the wider market. Many lenders, including Together, host informative webinars and produce educational material specifically to help brokers build their knowledge. Those taking advantage of these offerings will reap the rewards and so too will their landlord clients.

The era of buy-to-let is far from over, we just need to think outside the box to succeed.

There has already been a trend of landlords and investors beginning to move northwards in search of lower property prices and greater yield

48 NACFB | Industry insight

Bridging knowledge gaps Empowering brokers through ongoing education Andy Reid Sales Director TAB

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plan borrowers risk financial strain or default. Brokers should assess potential exits, including property sales, refinancing, and development completion, ensuring they align with lender expectations. Training on exit strategy structuring, accompanied by real-life examples, will enhance a broker’s approach.

ridging finance brokers play a crucial role in securing funding for their clients, but knowledge gaps in risk assessment, exit strategies, and deal structuring can impact borrower outcomes. Education is vital to closing this gap, equipping brokers – both those new to bridging and those who are seasoned professionals – with the expertise to navigate complicated transactions effectively and communicate this to borrowers.

Brokers should encourage borrowers to plan their exit from day one and establish contingency measures in case of delays. Aligning exit plans with loan terms ensures smoother transitions at the end of the loan period. By anticipating challenges, brokers can help clients avoid last-minute refinancing difficulties.

Risk assessment

Structuring a bridging loan requires balancing lender requirements with borrower needs, whilst ensuring regulatory conditions are met. Brokers should take care to understand how to structure a deal with appropriate LTV ratios and repayment profiles. Distinguishing between FCA-regulated and non-regulated loans is essential for compliance. Brokers should keep up to date with the regulations to prevent any issues. Additionally, best practices for deal packaging such as clear documentation and thorough due diligence can streamline approvals and strengthen relationships.

Risk assessment extends beyond the borrower’s creditworthiness. Brokers must evaluate property-specific risks to determine loan viability alongside market volatility and borrower experience. Key risk indicators such as unrealistic valuations, planning issues, or liquidity constraints must be identified early on to avoid deal failure.

One effective way to help brokers recognise red flags is by studying successful and failed bridging loan case studies.

Stress testing deals with different market conditions can also help enhance risk awareness. Brokers should educate borrowers on loan to value (LTV) limits, exit viability, and the consequences of delays to ensure informed decision-making.

Workshops and training sessions can also help to refine brokers’ risk profiling techniques. By improving due diligence, brokers can identify and mitigate risks more effectively, benefiting borrowers and lenders.

Exit strategy Another important factor is that a clear exit plan is crucial for a bridging loan’s success. Without a viable repayment

Structuring and compliance

Brokers also must take the time to educate borrowers on loan obligations, including any early repayment penalties, extension costs, and the risks. Transparent communication reduces misunderstandings and ensures borrowers make well-informed financial decisions.

Ongoing education is vital for brokers in bridging finance, even those who have years of experience. Strengthening knowledge in risk assessment, withdrawal plans, and deal structuring enhances service quality, mitigates risk, and improves borrower outcomes. Investing in training through workshops, case studies, and lender-led sessions ensures brokers remain equipped to navigate an ever-evolving market.

50 NACFB | Industry insight

The silent profit killer Natalie Collins Group Key Partnerships Manager TorFX

Protecting SMEs from the hidden costs of international trade

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usinesses navigating global markets face hidden financial pitfalls – costing them profitability, cash flow, and stability. From SME exporters to multinationals, businesses making or receiving international payments grapple with two pervasive challenges: currency volatility and underpaid invoices.

guidance on potential hedging solutions, so that businesses can focus on their core operations.

Underpaid invoices: The domino effect

Let’s look at possible pain points affecting your clients’ ability to improve their profitability, cash flow and forecasting – and how you, as their broker, can connect them with a solution.

Even modest swings in the currency market can create financial and administrative hurdles. Imagine a UK exporter billing €50,000. If EUR/GBP dips 0.5% before payment, they receive £425 less. Multiply this across dozens of invoices, and margins evaporate. The exporter then faces two bad options:

Currency volatility: The silent profit killer

•

The currency market is notoriously volatile, with the exchange rates between currency pairs regularly seeing daily fluctuations of as much as 1%.

•

This volatility can be magnified significantly by geopolitical events, which have triggered some staggering moves in the pound over the past decade including: •

•

Brexit – on the day of the EU referendum, the GBP/EUR exchange rate was trading at €1.28, before plummeting to €1.22 the morning the results were released. A difference of €6,000 on a £100,000 transfer.

War in Ukraine – GBP/USD saw a record 24.7% drop in the nine months that followed Russia’s invasion of Ukraine.

Wiping $29,000 off a £100,000 transfer.

Without hedging strategies, companies large and small face the difficult choice of absorbing profit losses, raising prices, renegotiating supplier terms, or exiting international markets entirely. Many SMEs lack the expertise to monitor live markets, resigning the resulting profit loss to business costs.

The solution? Brokers should consider introducing suitable clients to a corporate international payment specialist which can help mitigate risks by keeping an eye on the market and offering

Chase balances – risk straining relationships as buyers incur repeat transfer fees.

Absorb losses – treat foreign exchange (FX) gaps as operational costs despite eroding profit margins.

Or a good option: Using an international payment specialist to provide access to local currency accounts, enabling the exporter to invoice clients in their preferred currency. The exporter can either fix an exchange rate upfront or convert funds strategically when rates are favourable.

Bounced payments: the costly rebound When foreign currency payments bounce, funds are often returned in the domestic currency. Resending means being exposed to new exchange rate fluctuations, leading to further costs.

To avoid this scenario, again the solution is to use an international payment provider, so that returned payments are credited back to a foreign currency account, preventing unnecessary conversions and losses.

Global trade isn’t optional – but financial surprises are. By guiding clients to proactive FX management, brokers can empower businesses to lock in predictability, protect margins, and focus on growth. In a world where exchange rates shift faster than supply chains, foresight is the ultimate competitive edge.

How business banking used to be, just better.

Find out more at allica.bank/introducers introducers@allica.bank | 0330 094 3333 Allica Bank Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (FRN: 821851). Registered office: 4th floor, 164 Bishopsgate, London EC2M 4LX. Registered in England and Wales with company number 07706156.

52 NACFB | Industry insight

A change of plan Updated National Planning Policy Framework signals change in UK planning policy

Jonathan Witter Development Monitoring Director Assetz Capital

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he UK’s planning policies play a crucial role in shaping urban and rural development. The recent updates to the National Planning Policy Framework (NPPF) introduce several key changes that impact Green Belt land, housing supply, and opportunities for small and medium enterprise (SME) developers. These updates aim to balance sustainable development with housing needs while maintaining the integrity of protected land. Let’s look at these in more detail.

Defining Grey Belt land One of the most significant changes to the NPPF is the formal definition of Grey Belt land. This term refers to previously developed land (also known as Brownfield land) within the Green Belt. Unlike traditional Green Belt land, Grey Belt areas do not strongly contribute to the primary purposes of Green Belt preservation, and can be considered for development provided that this: • • •

Prevents the unchecked sprawl of large urban areas; Avoids the merging of neighbouring towns; Preserves the unique setting and character of historic towns.

This reclassification allows underused Green Belt land to be repurposed for housing, providing new opportunities for sustainable urban expansion while maintaining the overall objectives of Green Belt policy.

Boundary reviews Another pivotal change in the NPPF is the possibility of reviewing Green Belt boundaries under exceptional circumstances.

Previously, boundary revisions were rarely permitted. However, local planning authorities (LPAs) can now consider changes if they can fully justify and provide evidence that there is no alternative land to meet housing needs. The definition of ‘exceptional’ circumstances has been expanded to include situations where an LPA cannot meet housing development requirements in other locations.

A tiered approach To ensure sustainable planning, the NPPF introduces a tiered framework for addressing unmet housing needs. Before considering Green Belt land for development, the following must be evaluated: 1. Previously developed land in sustainable locations, such as

disused industrial sites;

2. Other Green Belt locations identified in local plans that may

be more suitable for development;

3. Remaining sustainable Green Belt locations that align with

planning and sustainability objectives.

Three golden rules Where major development on Green Belt land is necessary, new planning rules (Paragraph 156) set out three key conditions: 1. A 50% cap on affordable housing, ensuring that at least half

of the housing stock includes an appropriate proportion of social rented units, subject to viability;

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2. Infrastructure improvements, ensuring that any new

developments include necessary upgrades to local or national infrastructure to support increased housing demand; 3. Green space provisions, mandating that new or improved public green spaces be made accessible as part of the development.

Restoring the 5-Year Housing Land Supply (5-YHLS) The 5-Year Housing Land Supply (5-YHLS) requirement has been reinstated. Before 2023, LPAs were required to maintain a rolling supply of deliverable sites to meet housing demand for the next five years. The reintroduction of this rule has several implications: •

•

•

Increased appeals – Developers may file more appeals to release land in areas where demand is high, but the 5-YHLS is not demonstrated; Pressure on Green Belt land – If LPAs struggle to meet the 5-YHLS, there may be more applications to develop Green Belt land under ‘special circumstances’; Prioritisation of Brownfield land – Disused industrial sites and previously developed land in sustainable locations are likely to receive more attention for development.

The UK’s planning policies play a crucial role in shaping urban and rural development

A boost for SME developers The updated NPPF also includes specific measures to support SME developers, recognising their role in increasing housing supply and fostering economic growth. These measures include: 1. Policy improvements – Ensuring that 10% of small sites are

allocated to SME developers;

2. Streamlined approvals – Planning committees are

undergoing reforms to accelerate the approval process for small sites and mixed-use developments; 3. Enhanced application tools – The use of ‘planning permission in principle’, Local Development Orders, and Brownfield Registers will help speed up application processes; 4. Release of Grey Belt sites – Greater opportunities for SMEs to develop infill sites and contribute to the broader housing pipeline; 5. Greater scrutiny on Housing Land Supply – The reinstatement of the 5-YHLS requirement means LPAs will need to ensure small sites are adequately included in planning strategies; 6. Rural development opportunities – Expanded flexibility for community-led and affordable housing projects, including self-build initiatives; 7. Larger sites split for SME access – Encouraging LPAs to subdivide large developments to allow smaller firms to participate in new housing projects.

The updates to the NPPF represent a major shift in planning policy, balancing the need for housing with the protection of Green Belt land. By defining Grey Belt areas, introducing tiered housing approaches, and supporting SME developers, the framework aims to create a more sustainable and inclusive planning environment. These changes will likely lead to an increase in new housing developments while maintaining the core principles of conservation and smart urban growth.

54 NACFB | Industry insight

Rent vs buy Should businesses consider owning their premises?

Conor McDermott Director of SME Lending LHV Bank

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property yield tends to sit around 8-9%, which is the return a tenant is effectively paying their landlord. With mortgage rates currently between 7-9%, a business with some equity invested could find that repayments match, or even undercut, rental costs.

or years, renting has been the default choice for many businesses. It keeps upfront costs low, provides flexibility, and avoids the responsibility of property ownership. But as commercial values shift and landlords look to sell, many business owners are taking a step back and asking: should we buy instead?

The difference? Rent is an expense. Mortgage payments build equity. Over time, ownership becomes an asset, offering control and stability that leasing simply can’t provide. Whilst we know that brokers know this, savvy brokers remind their clients of these differences to help the client make more informed finance decisions.

New opportunity

Beyond the numbers

For some, the decision to buy hasn’t necessarily been a pre-planned strategic move but rather an opportunity that arose unexpectedly.

Landlords are exiting the market, and tenants are being offered first refusal on the buildings they’ve occupied for years. The offer is tempting, but it raises big questions about finance, cash flow, and what ownership really means for the business.

Cost alone isn’t the deciding factor. Ownership gives businesses certainty – no rent hikes, no negotiations at lease renewal, less risk of losing premises. There’s also the freedom to adapt or expand, rather than waiting for a landlord’s approval.

For companies used to signing leases, commercial mortgages can feel like unfamiliar ground. It’s not just a case of securing a loan and making payments; it’s about understanding how ownership impacts working capital, growth plans, and financial flexibility.

The challenges first-time commercial buyers face Many SMEs have experience of short-term finance. By this I mean working capital loans, trade finance, or maybe even asset finance, but a commercial mortgage is a different proposition.

There are lender requirements to consider, such as debentures, which can affect the ability to access other funding. This is where structuring the right deal makes all the difference, and a good broker and lender will work with the SME to simplify the process and ensure finance solutions align with business cash flow and future investment needs.

The financial argument for ownership At first glance, buying might not seem much too different from renting in terms of cost. The average commercial

Some buyers could even find themselves in a new role, that of a landlord. Subletting excess space can bring in additional revenue, adding another layer of financial security. For businesses with an eye on the future, ownership isn’t just about the numbers, it’s about control.

The right move for every business?

Buying commercial property is a significant commitment. It won’t be the right choice for every business. But with more landlords selling up and property values in flux, it’s an option worth serious consideration, and brokers are well-placed to steer their clients through the pros and cons, including sourcing the right financing for when the answer is a clear yes.

Rent is an expense. Mortgage payments build equity

56 NACFB | Broker voice

The very many hats of a broker Adding value beyond just the transaction

Takunda Makumbe Commercial Mortgage Advisor UK Business & Finance Solutions

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or years, brokers have been seen as mere middlemen – connecting clients with lenders and moving on. But the role of the broker has evolved significantly, shifting from a purely transactional function to that as more of an indispensable advisor. This transformation is not just about adding value; it’s about proving it.

In an era where regulatory shifts – such as drives to prompt brokers to disclose commissions upfront – are increasing transparency, brokers must justify their fees by demonstrating expertise, guidance, and advocacy at every stage of the deal.

The broker’s expanding role Brokers now wear many hats throughout the deal cycle. They are no longer just intermediaries; they are problem-solvers, strategists, administrators, and client advocates.

Whether assisting seasoned investors navigating complex financing structures or hand-holding first-time buyers through every step of the mortgage process, today’s brokers must be fluent in every aspect of a deal – from enquiry to completion.

The journey starts with an initial enquiry, where the broker conducts a detailed fact-find, appropriate regulatory and compliance checks, assesses the client’s credit file, and identifies suitable lenders. This step alone involves wearing the hats of a financial analyst and market researcher.

Once viable options are found, a skilled broker won’t settle for just one Decision in Principle (DIP); they’ll obtain at least three to present to the client with a comparative analysis. Here, they become an educator, explaining why one lender’s terms may be more beneficial than another’s.

More than just a submission Once a lender is chosen, the full loan application is submitted, but the

57 broker’s role doesn’t stop there. They become an active case manager – anticipating underwriting queries, compiling documents in an optimal format, and liaising with the lender to ensure a smooth approval process. Their experience allows them to package responses in a way that expedites approvals. Next comes the valuation stage, where brokers shift into a logistical coordinator role.

Depending on the lender, they may have to arrange payments, instruct valuers, and coordinate property access. This is not a passive role; experienced brokers proactively manage the valuation process to ensure that reports are returned in a timely manner and any discrepancies – such as unexpected property valuations or rental income adjustments – are explained to the client in clear terms.

Beyond the offer: The legal hurdles Many assume that a broker’s job is complete once a loan offer is granted, and rightfully so, as most brokers’ fees are due at this stage. However, this is when some of the legal complexities begin. Brokers act as legal liaisons, researching lenders’ solicitor panels, instructing conveyancers, and maintaining strong relationships with conveyancing panel firms, and individual solicitors. A crucial part of this role is ensuring that the client is matched with a competent solicitor who will facilitate a smooth process rather than delay completion.

This shift in the brokerage landscape isn’t just about compliance; it’s about elevating the profession

Effective brokers can effectively anticipate potential legal snags such as outstanding planning permissions, title issues, and leasehold complications.

In one recent case, a client had an unresolved planning issue with the local council that threatened to delay completion or, in the worst-case scenario, cause the deal to collapse entirely. I took the initiative to liaise with architects, council officers, solicitors, and the lender, ensuring that the required permissions were obtained and that the case proceeded to completion. The proactive approach ensured that the lender’s solicitors’ enquiries on planning permission and correct class use were addressed adequately, preventing last-minute complications that could have jeopardised the deal.

Going the extra mile Even at completion, the broker’s involvement doesn’t necessarily end.

Many lenders require proof of adequate insurance on the financed property before releasing funds. Here, brokers may step in as insurance coordinators, working with insurers to secure appropriate policies that satisfy lender requirements.

In some cases, the broker’s role extends to the very last detail – even collecting the keys on behalf of the client. This is because, throughout the transaction, the broker may have been liaising with the estate agents on the client’s behalf, ensuring that even the seller remains informed of the case’s progress. This level of dedication underscores the shift in brokerage services from a transactional mindset to a full-service advisory approach.

Proving the value proposition This shift in the brokerage landscape isn’t just about compliance; it’s about elevating the profession. By adding real value at every step of the process, brokers are not just justifying their fees, they are proving that they are indispensable partners in the finance journey reinforcing their role as the driving force behind successful property transactions.

58 NACFB | Opinion

Martin Tighe

Looking beyond the bottom line

Regional Director Unity Trust Bank

The business case for values-based banking

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n today’s market, businesses are recognising that profits and purpose aren’t mutually exclusive. Through values-based banking, organisations can access competitive commercial support, while ensuring their deposits are driving positive change in society.

Demand for ethical finance is increasing too. Today’s customers are more aware of, and invested in, the social and environmental impact of organisations they spend their money with. This is influencing where businesses are choosing to deposit funds. Brokers can play an important role in helping clients make good choices about their money. By recommending a values-based bank, brokers can give confidence that their deposits are helping to support social good.

This call for greater transparency has been mirrored by more stringent regulation in the sector. Industry bodies such as the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) now require more robust impact reporting – including proper measurement of a lender’s sustainability, green finance, and social impact initiatives. As values-based banks lend money against specific criteria to deliver positive change, brokers can assure customers that their funds are acting as a force for good.

For many mainstream institutions, a ‘sustainable finance’ approach may only form a small part of their overall commercial strategy. In contrast, ethical banks are built upon a complete commitment to make a positive difference in society. This is what ultimately drives their financial and lending decisions, with a focus on the delivery of tangible social impact alongside commercial returns.

Values-based banks will often cater to underserved sectors, such as charities, local councils, or community interest companies.

These clients may not have a long credit history, meaning they often struggle to secure funding from more traditional, high street lenders. In recent years, some of these groups have even struggled to access basic banking services. Values-based banks, on the other hand, provide customers with personalised and tailored services due to the shared values and aim to create positive change. Both brokers and their clients can benefit from the expertise of specialist relationship managers, with an in-depth knowledge of the sector and their needs.

By understanding the proposition of a values-based bank, brokers can best serve their clients who are looking to make an ethical choice and still receive competitive returns on their deposits. Today, customers want to ensure their money is being used for good, with a bank that shares the same values of social responsibility. In an evolving climate, these lenders represent a valuable option for brokers, who can further develop their own client base and, in turn, help their customers deliver positive social change.

Through values-based banking, organisations can access competitive commercial support, while ensuring their deposits are driving positive change in society

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60 NACFB | Opinion

Property business boom A strategic opportunity for brokers Justin Snoxell Director of Real Estate Finance Arbuthnot Latham

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he UK’s property sector is undergoing a structural shift. The number of registered property businesses doubled between 2020 and 2024 to 40,167, with a striking 46% rise in the past year alone. Behind the numbers lies a compelling story of evolving regulation, smarter tax planning, and a growing appetite for long-term wealth preservation. For commercial finance brokers, this presents both a challenge and an opportunity: how to guide clients through this changing landscape.

What is driving the boom?

One significant factor is regulatory reform. Government changes to non-domicile rules now require offshore property holdings to be registered in the UK. In the past, many overseas investors held UK property through offshore entities, meaning these holdings weren’t recorded on UK company registries. With government reforms requiring these companies to register in the UK, we’re seeing a notable increase in new property-related business registrations.

At the same time, tax efficiencies and wealth preservation are playing an increasingly important role. More landlords are turning to limited companies to hold their property portfolios, driven by the potential for greater tax flexibility and improved wealth planning options. “More people are recognising that acting early provides greater flexibility and better tax efficiencies,” says my colleague and senior wealth planner, Gary Jasper. “As awareness of wealth protection strategies grows, more landlords are setting up property businesses sooner rather than later to maximise the benefits.”

Regional investment on the rise While London remains a key investment hub, the property business boom is far from confined to the capital. Cities like

Manchester, Liverpool, and Birmingham saw property-related business registrations grow by over 25% last year. Strong rental demand and better affordability compared to London are driving this shift. These cities continue to be prime destinations for investors looking for strong yields and long-term growth potential.

This diversification offers brokers a chance to position clients at the forefront of emerging investment trends. Understanding the unique dynamics of these local markets, from regeneration projects to rental market strength, will allow brokers to deliver sharper, more tailored advice.

The broker’s role in an evolving market As clients look for ways to future-proof their property investments, brokers have a vital role to play. This means not only keeping pace with regulatory and tax changes, but also proactively advising on portfolio structuring, wealth preservation, and succession planning. According to Gary: “While buy-to-let companies don’t qualify for Business Property Relief, landlords still have options for long-term planning. Gifting shares in a property company over time, establishing trusts, and implementing strategic wealth management can help safeguard a property legacy.”

Arbuthnot Latham cannot offer tax advice. Your clients should consult an independent tax adviser for tailored advice on their specific circumstances.

While London remains a key investment hub, the property business boom is far from confined to the capital

62 NACFB | Opinion

Mastering the art The secret to a smooth application John Donnelly Head of Loan Originations Atom bank

T

And, if the lender does suggest that further information needs to be supplied, it’s always preferable to deliver it in one go than piecemeal in order to speed up the process.

One and done

here is an art to packaging a commercial case, to give it the best chance of gaining approval quickly.

So, what do brokers need to think about when putting together an application?

A comprehensive, full application will include all of the information a lender needs in order to make a decision on a case after a single review. If you don’t yet have all of that information, it’s better to hold off submitting.

Supply everything a lender needs

A good example is with Special Purchase Vehicles (SPVs), where we have previously seen applications submitted before the SPV has been incorporated. While it’s understandable to want to get things moving, ultimately this won’t lead to a quick result.

Lenders need to get a full picture of the client and their business in order to make a decision, so in order to get a response back to the broker this sort of information is crucial.

Lenders don’t want to keep coming back to clarify aspects of a case. The documents or information being requested are fundamental to making an educated decision that’s in line with their lending policies. So, send as much information as possible up front, so the lender can determine which aspects are most important.

Classic examples we have seen of missing info that can scupper an application include leaving out one or more of the directors or large shareholders, supplying out of date financials, and a lack of a structure chart for more complex deals.

If the lender employs a portal, as we do at Atom bank, then use the questions as a starting point. There could be information that will impact a lending decision that is useful to include – such as future plans for a property with an expiring lease or including the full company names for any tenants, so the lender can identify the type of business being run – which don’t neatly fit with the template questions.

There are crucial details within the portal we regularly see missed too, leading to an instant no with most lenders. Often the tenancy schedule isn’t uploaded, or differs from information on supplemental schedules provided. Similarly key details on the ALIE (assets, liabilities, income and expenditure) are often missing, meaning the lender can’t ascertain if there is any reliance on EBITDA (earnings before interest, taxes, depreciation, and amortization) or rental income for living expenses.

It’s good to talk When cases go through smoothly, it’s often down to the quality of the communication. That applies from the very outset, including the initial conversations with the client about the case.

It’s in those discussions that the broker can ensure they have all of the information the lender needs in order to make a decision, to fill in any gaps which could cause delays.

Communication between the broker and their point of contact at the lender is crucial too. Brokers who are thorough in providing that information – even if it isn’t always explicitly asked for by the lender’s portal – tend to see a faster, positive response.

That dialogue is just as important if there are questions and queries. If you are open about whether you may struggle to hit certain deadlines from the lender, the lender can work with you to provide the time needed. The last thing a lender wants is to close down a case, thinking it’s not progressing, while you are working away in the background to get the required information.

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64 NACFB | Opinion

Opportunity spotting Enabling businesses in a high-cost environment

Stephen Hand UK Sales Director Bibby Financial Services

H Achieving growth in today’s high-cost environment requires more than just optimism

igh costs and inflation are key challenges for 60% of businesses according to the findings of our latest SME Confidence Tracker which surveys more than 1,000 SMEs across Britain. The figure is up from the 40% revealed in the previous survey.

It would seem that the ongoing challenging economic environment continues to mount pressure on SMEs. The costs of doing business are at unprecedented levels, inflation and energy costs remain stubbornly high, and the recent increase in employers’ National Insurance contributions are doing nothing to alleviate the situation such that many businesses will struggle to achieve their growth ambitions without support.

Construction industry pressures Whilst the survey findings highlight the cost challenge for SMEs of all sizes and sectors, in construction, where businesses grapple with escalating material and labour costs, the impact is more pronounced. Some 70% of construction respondents cited costs as a key challenge, putting pressure on their profitability.

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Interestingly, the stats are also higher amongst businesses with a turnover of between £1-5 million – at 72%. The fact that almost one in five businesses (19%) see renegotiating with existing suppliers as a key opportunity over the next six months, highlights the recognised need to take proactive action to ensure a sustainable cost base.

Cautious optimism lurks Despite the challenges, there’s a sense of cautious optimism amongst SMEs. The findings show that 60% of businesses remain profitable, and 66% expect sales growth in the next six months. Additionally, many (59%) SMEs see attracting new customers as a key opportunity for their business over the next six months. However, achieving growth in today’s high-cost environment requires more than just optimism; it demands robust financial management, from identifying cost-saving opportunities to ensuring timely customer payment and efficient cash flow management.

Healthy cash flow is key A healthy cash flow is key to keeping a business running smoothly and to unlocking growth. With a third of SMEs surveyed reporting insufficient cash flow to grow their business, rising to 45% amongst those with a turnover of less than £250,000, support is key to enable them to operate effectively.

Cash flow is particularly challenged in situations of customer insolvency. Of those surveyed, 45% had experienced one or more of their customers ceasing to trade in the last six months.

Notably, in the manufacturing sector, this was higher, at 52%.

The role of external finance Only 6% of businesses using external finance said they had no plans to invest compared to 14% of self-funded business. Indeed, external finance can play a key role in alleviating cash flow pressures and supporting growth. The research shows that just over a quarter (26%) of SMEs currently use external finance, but across the one thousand businesses we asked, 40% recognised their need for finance is greater than it was six months ago. With a large percentage (43%) declaring they are more likely to use it than they were six months ago (higher still amongst businesses with a turnover of over £1 million), it indicates that there is more

intention to seek solutions. This represents a clear opportunity for trusted brokers to help SMEs both understand and access the financial solutions they need.

Invoice finance is a future-focused solution that enables a timely injection of cash for the efficient day-to-day running of a business, or to invest in growth. It also provides scalability, since the funding unlocked can increase in line with turnover.

Cash flow loans are another potential option and can often be used alongside an invoice finance facility.

Horizon-scanning Looking ahead, the economic landscape will continue to evolve, and with it, new challenges and opportunities will emerge. In terms of opportunities, 33% of survey respondents said they had insufficient cash flow to grow compared to six months ago. Brokers who can identify which of their clients might be in this position, should seize the opportunity to provide strategic planning and access to the right financial tools to facilitate growth and success.

The collaboration between brokers and funding providers will also be key to providing businesses with the support and resources needed to both succeed now, and to build long-term resilience in a high-cost environment.

Just over a quarter (26%) of SMEs currently use external finance, but across the one thousand businesses we asked, 40% recognised their need for finance is greater than it was six months ago

66 NACFB | Opinion

The automation game Paula Mercer Director of Sales LendInvest

How technology is simplifying the mortgage process

T

raditionally known for large piles of paperwork and lengthy processes, today’s modern mortgage industry is undergoing a significant transformation; one that is fuelled by technology. From initial applications to final closings, tech is streamlining operations, improving customer and broker experiences, and reshaping the entire mortgage ecosystem. This evolution isn’t just about convenience; it’s about creating a more efficient, transparent, and accessible property finance market.

Broker portals One of the most impactful changes is the rise of digital mortgage platforms which allow brokers and intermediaries to explore loan options, compare products and complete applications from anywhere with a decent wifi signal. This eliminates the need for multiple in-person meetings and reduces the reliance on paper-based documentation.

Automated underwriting Automated underwriting systems are also gaining traction, leveraging algorithms and data analytics to assess borrower risk more quickly and accurately than traditional methods. This speeds up the approval process, allowing borrowers to receive decisions in a fraction of the time.

Document management Beyond the initial application, technology is revolutionising other aspects of the mortgage journey. Digital document management systems are replacing cumbersome paper files, making it easier to access and share important documents.

Loan tracking Real-time loan tracking tools provide both brokers and borrowers with up-to-the-minute updates on the status of applications, increasing transparency and reducing anxiety.

Automated valuation models Even appraisal processes are being enhanced through automated valuation models (AVMs), which can provide quick and cost-effective property valuations.

Automated data aggregation Automated data aggregation tools can quickly gather and analyse financial information from various sources, including bank accounts, investment portfolios, and tax returns. This eliminates the need for brokers to help their clients to manually compile and submit large volumes of paperwork, significantly reducing processing time.

Multiple benefits The benefits of these technological advancements are numerous.

Borrowers and brokers experience a faster, more convenient, and less stressful mortgage process. Brokers can more effectively manage client expectations. Lenders benefit from increased efficiency, reduced operational costs, and improved accuracy. The overall result is a more competitive and dynamic mortgage market.

Perhaps one of technology’s most significant impacts is its ability to accelerate the closing of complex mortgage deals.

These deals, often involving self-employed borrowers, multiple properties, or intricate financial situations, traditionally require extensive manual review and can take weeks, even months, to finalise. Technology is changing this.

Lenders that cling to traditional, one-size-fits-all mortgage models risk becoming obsolete. The future lies in dynamic, multi-dimensional relationships between lenders, brokers and borrowers – where financing is a strategic enabler rather than a bureaucratic bottleneck. The lenders which embrace product innovation alongside digital agility will set a new industry standard, driving faster, more strategic financing decisions that empower borrowers.

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68 NACFB | The big five

5

insights from the NACFB’s impact report

W

hat does broker-backed £26.5 billion of SME lending look like? Published earlier this year (see issue 120) the NACFB’s 2024 impact report offers a detailed snapshot of the intermediary-led finance landscape - showcasing the scale, spread, and significance of broker activity. From shifting regional flows to product-level breakdowns, the report underpins the value brokers bring to SMEs across the UK. We’ve collated just five standout findings that highlight why brokers remain central to the UK’s commercial finance story.

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London and the South East may still hold sway, but perhaps their dominance is fading. Broker-led lending dropped by 7% and 6% in those areas, whilst the West Midlands and South West gained ground. Brokers are leading a regional rebalancing, with demand rising outside traditional hubs. This evolution supports the UK’s levelling-up ambitions - and places brokers at the heart of it.

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Brokers leading the lending charge NACFB Member brokers facilitated a remarkable £26.5 billion of the UK’s £38 billion broker-led SME lending market in 2024. That’s 70% of the total from all commercial brokers - underscoring the indispensable role of brokers in funding UK businesses.

With two-thirds of commercial lender portfolios now flowing through intermediary channels, the report confirms what many already know: brokers aren’t just helping - they’re driving SME finance.

Trust is built over time 48% of all last year’s broker leads came from returning clients, showing the strength of long-term relationships in this space. Add another 15% from client referrals and 14% from professional introducers, and it’s clear: word-of-mouth and trusted networks power the broker business model. As brokers deepen relationships and deliver consistent outcomes, their role in wider business ecosystems only continues to grow.

Read the full NACFB 2024 impact report here.

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A regional reset is in motion

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Brokers are on the up Brokers aren’t just maintaining market share - they’re expanding it. 78% of NACFB firms grew last year, with nearly 60% increasing the number of loan originations.

Even as regulated activity remains low (just 15% of transactions), 87% of brokers still hold FCA permissions.

Whether diversifying products or specialising further, brokers are evolving fast - and are still shaping the future of SME finance.

Product mix reveals market priorities Of the £26.5 billion facilitated, 61% was property finance - led by commercial mortgages, BTL, and bridging. Asset finance took 24%, while business lending (including unsecured and M&A finance) made up 15%. The data speaks volumes: brokers are enabling vital investments across property, equipment, and working capital, with specialist and challenger lenders accounting for a combined 60% of total funding.

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70 NACFB | Five minutes with

Five minutes with: Rachael Raymond Head of Broker, Funding Circle

What attracted you to work for Funding Circle?

What professional skills do you think everyone should have?

The brand is unrivalled in this market, but Funding Circle’s dedication to helping small businesses, and commitment to fuelling our customers’ ambitions really shone through. It’s the drive to support businesses with the finance they need to win, those who are the backbone to the UK economy, that really stood out to me. So, it was a no brainer when I spoke with our leadership team and saw just how passionate and invested everyone here is in this mission.

The top two for me are listening and communicating. Make sure you take the time to fully comprehend what’s being said, and then make sure you are effective in getting your point across in the moment, but also in how you follow-up.

What is the best part of your current role?

The people I work with are exceptional, and I can say with confidence that the success we have seen in 2024 is a direct result of all of their hard work and dedication. Building great relationships with our broker community is paramount to this success, but also one of the most enjoyable parts of the job.

What development might disrupt commercial finance and how should we, as an industry, respond?

I think we will see greater demand for alternative finance in 2025 from the SME market, and as a leader in this space we need to ensure that we’re best positioned to service these customers.

Our focuses coming into this year are to allow for greater flexibility, to invest in further automation, and ultimately to ensure that we are able to say ‘yes’ to more businesses.

What is your favourite SME success story?

How do you stay motivated during challenging times?

Introduced by our broker partner, Portman, Alexis Gauthier (a multi-award-winning French chef and London restauranteur) was looking to expand and grow his business. In 2010, Alexis launched his restaurant, Gauthier Soho, and since, has opened a number of restaurants including 123V bakery – where in July 2023, he launched Studio Gauthier within the space. In 2024, 123V also opened in Browns, Mayfair.

I truly believe that challenges should be viewed as opportunities, and I think having this attitude not only betters outcomes, but it also keeps you focused and driven.

In 2021 he decided to remove all animal products from his restaurant menus entirely, having first created a plant focused ‘garden menu’ in 1997 at his Michelin-starred restaurant Roussillon, at a time when vegetables in British restaurants were mostly added as an afterthought.

I am not vegan myself, but I find it really inspiring that Alexis’ goal is to be a business of ‘plant-based creators’, and avoid going into the ‘mainstream vegan’ world. I really respect this pursuit of the extraordinary, as well as his determination to stay true to a mission.

Do you prefer physical books, digital books, or audiobooks? Why? As an English Literature graduate, I’m old school and like a real book.

What was your first job?

I made and sold photo keyrings at age 14 to fund a trip to South America. I don’t think I quite earned the status of ‘small business’ with this endeavour, but it did teach me a lot about persistence and work ethic at an early age.

How do you like to exercise?

I love to play golf and I love skiing, but I also enjoy a long country dog walk.

What’s your go-to morning beverage?

Decaf latte – I don’t drink caffeine.

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