NACFB Magazine - December 2017

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Issue 53 December 2017

The magazine for the National Association of Commercial Finance Brokers

Our gala dinner: the silver lining of 2017

In this issue

Autumn Budget

Three essential takeaways

The EFG asset finance variant Hitachi Capital UK announced as first accredited lender

Are you ready?

For the first time in a decade, the Bank of England raises rates

r experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better n better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation r people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better ilt on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on tion built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge r innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better uilt on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on edge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service r knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on e built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience r service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better ilt on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on ence built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people r experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better ypically, any opening remarks n better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation in the December issue of the r people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better NACFB Magazine would reflect ilt on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on upon the year behind us. You would tion built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge r innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better expect me to herald the successes uilt on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on the largest ever Commercial edge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on betterof service r knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better Finance Expo and gala dinner, on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on and the work our Members have e built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience done to help fund UK businesses. r service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better ilt on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on ence built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people While r experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on betterI am extremely proud of these n better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on achievements and the tireless support built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation work from the head office team, now r people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better ilt on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge isbuilt noton a time for reflection. Let me tion built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge assure you, the focus of your NACFB r innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better remains uilt on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on firmly fixed on the future. edge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service r knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better • Acquisition funding • Acquisition & Equity Release • Acquisition funding Our on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built25th on anniversary was an important • Mixed use investment property • 44,800 sqft industrial unit • 21,400 sqft mixed use investment e built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience milestone but it is the actions and • £4.7m loan, 12 month term • £3.4m loan, 9 month term property r service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better changes that we are implementing ilt on better service built on better knowledge built on better innovation built on better people built on better experience built on better•service built on better knowledge £11.5m loan, 12 month termbuilt on better innovation built on better people built on now that will shape how we, as an ence built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people r experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better Association, adapt to the challenges n better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on of the next quarter of a century. built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation r people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better ilt on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on We are growing considerably in tion built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge r innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better scale and complexity but we will uilt on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on carry forward our inherent values to edge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service ensure r knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better that we are the professional on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on association of choice for all commercial e built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience finance brokers and lenders, r service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better ilt on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on servicing the needs of business ence built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people borrowers and property investors. r experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better n better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation Over the coming weeks and months, r people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better you ilt on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge builtwill on see the Association clearly tion built on better•people built on better experience built on better service built on better knowledge built on betterand innovation built on•better people built on better experience built on better service built on better knowledge 19 unit residential scheme with • Conversion to 33 apartments 31 unit residential scheme set out its vision for the future. We r innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better cinema, restaurant and bar 3 restaurant units • £10.6m loan, 19 month term firmly uilt on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built onbelieve that such clarity of £15.2m loan, 25better month term • built £12.0m loan,service 26 month term 65.0% LTGDVbuilt on better people built on better experience built on betterpurpose edge built on better• innovation built on people built on better experience on better built on better knowledge built on•better innovation service and transparency of method r knowledge built on better innovation built on better service built on better knowledge built on better innovation built on better people built on better experience built on better • 60.0% LTGDV built on better people built on better experience • 67.4% LTGDV will make it easier for our brokers on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on and Patrons to engage with the e built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience r service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better NACFB, and allow us to bring even ilt on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on greater ence built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people value to the membership. r experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better n better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on Thank you to all of those who are built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation joining us on this exciting new r people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better ilt on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on I very much look forward chapter. tion built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge to meeting with as many of you as r innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better uilt on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on next year. 2018 is going to possible edge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service bebetter a year of positive change for the r knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on – but before all that can NACFB e built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience begin, I want to wish all of those r service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better within ilt on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built onthe NACFB family a very merry ence built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people Christmas and happy new year. r experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better n better experience on better service innovationbridge built onloan better people built on better experience built on better • built Development exitbuilt loanon better knowledge built on•better Acquisition • Development exitservice loan built on better knowledge built on better innovation built on built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation Warm regards, • 9 new-build detached luxury homes • Site with consent for 77 student units • 5 apartments and 3 mews houses r people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better • built £6.0m loan,experience 18 monthbuilt term, 70.0%service LTV built on •better £3.8m loan, 3built month term, 50.0% LTV £3.6m loan, 12 month term,built 70.0% LTV service built on better knowledge built on ilt on better people on better on better knowledge on better innovation built on better•people built on better experience on better Graham Toy tion built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge r innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better CEO, NACFB uilt on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on edge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service r knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on e built on betterOctopus knowledge built is onthe better innovation on better people built on Fern better experience built on betterNino service on better knowledge built on better built on better people built on better experience Property trading name of built Bridgeco Ltd (Reg No 6629989), Trading Ltd (Reg No 6447318), Ltd built (Reg No 9015082), Octopus Property Lendinginnovation Ltd (Reg No 7531926) r service built on better knowledge on better innovation on better people built onLondon better experience built on better service onand better knowledge built on better innovation and Octopus Co-Lendbuilt Limited (Reg No 8913299),built Registered Office: 33 Holborn, EC1N 2HT, registered in England andbuilt Wales Dragonfly Finance S.ar.l.

(Reg No B189290) built on better people built on better ilt on better service built on better built on better innovation built on better people built on better experience built on Octopus better service built on better knowledge built on Limited better innovation built on better people built on Registered Office: Parcknowledge d’Activité Syrdall, 6 rue Gabriel Lippmann, L-5365 Munsbach, Luxembourg registered in Luxembourg.

Property Lending Ltd and Octopus Co-Lend ence built on better service built better knowledge builtConduct on better innovation built on better are authorised andon regulated by the Financial Authority.

For intermediary usepeople only built on better experience built on better service built on better knowledge built on better innovation built on better people r experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better n better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation

Welcome | NACFB

Octopus Property is a leading lender in the commercial, development and residential property markets.

We understand property and have an established track record that is built on better service, knowledge and innovation. Our performance speaks for itself and our commitment to providing flexible loans enables us to cover the market and support our clients, no matter how complex the requirement.

Recent Commercial Loans

Ruislip, Middlesex

Imperial Way, Croydon

Long Lane, London

Recent Development Loans

Kings Road, Reading

Chalk Farm, London

Wood Green, London

Recent Residential Loans

The Oaks, Sutton Valence

Ealing, London

Castle House, Tunbridge Wells

www.octopusproperty.com • sales@octopusproperty.com • 0800 2946850

T

Graham Toy CEO NACFB

In this December issue NACFB News 4-6 6-7 8

In the news Expanding our reach Notes from our sponsor

Commercial Finance 10-11 Essential news bites

Top Story 12

Number of IFIsa offerings on the rise

Introducing 14

Think Business Loans launches much-needed broker app

Case Studies 16

Fuelling two luxury refinance deals 18-19 Funding the transformation of redundant office space 20 Change-as-you-go loan enables swift completion 22 Healthcare expertise supports growing nursery

Special Features 34-35 Brokers: how you can support ‘made in Britain’ 36 Entering a new realm within P2P 38-39 Are you ready?

40-43 Three essential takeaways from the Autumn Budget

Compliance Updates 44-45 The thorny issue of complaint handling

Industry Guides 46

Channelling asset finance through the EFG scheme 48-49 Moving on to pastures new

Opinion & Commentary 50 52 54

Spread the word on the IFIsa It’s not enough to cheer us on The future is digital

Cover Story 24-28 Our 2017 gala dinner

Patron Profile 30-31 West One

Ask the Expert 32

John Byrne

For further information Kieran Jones, communications manager t. 020 7101 0359 Hamilton House, 1 Temple Avenue London EC4Y 0HA Email: Kieran.Jones@nacfb.org.uk Vera Sugar, editor t. 0203 818 0171 71 Gloucester Place, London W1U 8JW Email: vera@medianett.co.uk

ADVERTISING & EDITING: Medianett 0203 818 0163 www.medianett.co.uk DESIGN & PRODUCTION: Carbide Finger Ltd t. 0845 812 8206

NACFB Magazine | 3

r experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better n better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation r people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better ilt on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on tion built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge r innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better uilt on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on edge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service r knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on e built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience r service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better ilt on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on ence built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people r experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better ypically, any opening remarks n better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation in the December issue of the r people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better NACFB Magazine would reflect ilt on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on upon the year behind us. You would tion built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge r innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better expect me to herald the successes uilt on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on the largest ever Commercial edge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on betterof service r knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better Finance Expo and gala dinner, on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on and the work our Members have e built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience done to help fund UK businesses. r service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better ilt on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on ence built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people While r experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on betterI am extremely proud of these n better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on achievements and the tireless support built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation work from the head office team, now r people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better ilt on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge isbuilt noton a time for reflection. Let me tion built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge assure you, the focus of your NACFB r innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better remains uilt on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on firmly fixed on the future. edge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service r knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better • Acquisition funding • Acquisition & Equity Release • Acquisition funding Our on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built25th on anniversary was an important • Mixed use investment property • 44,800 sqft industrial unit • 21,400 sqft mixed use investment e built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience milestone but it is the actions and • £4.7m loan, 12 month term • £3.4m loan, 9 month term property r service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better changes that we are implementing ilt on better service built on better knowledge built on better innovation built on better people built on better experience built on better•service built on better knowledge £11.5m loan, 12 month termbuilt on better innovation built on better people built on now that will shape how we, as an ence built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people r experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better Association, adapt to the challenges n better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on of the next quarter of a century. built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation r people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better ilt on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on We are growing considerably in tion built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge r innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better scale and complexity but we will uilt on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on carry forward our inherent values to edge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service ensure r knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better that we are the professional on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on association of choice for all commercial e built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience finance brokers and lenders, r service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better ilt on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on servicing the needs of business ence built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people borrowers and property investors. r experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better n better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation Over the coming weeks and months, r people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better you ilt on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge builtwill on see the Association clearly tion built on better•people built on better experience built on better service built on better knowledge built on betterand innovation built on•better people built on better experience built on better service built on better knowledge 19 unit residential scheme with • Conversion to 33 apartments 31 unit residential scheme set out its vision for the future. We r innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better cinema, restaurant and bar 3 restaurant units • £10.6m loan, 19 month term firmly uilt on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built onbelieve that such clarity of £15.2m loan, 25better month term • built £12.0m loan,service 26 month term 65.0% LTGDVbuilt on better people built on better experience built on betterpurpose edge built on better• innovation built on people built on better experience on better built on better knowledge built on•better innovation service and transparency of method r knowledge built on better innovation built on better service built on better knowledge built on better innovation built on better people built on better experience built on better • 60.0% LTGDV built on better people built on better experience • 67.4% LTGDV will make it easier for our brokers on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on and Patrons to engage with the e built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience r service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better NACFB, and allow us to bring even ilt on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on greater ence built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people value to the membership. r experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better n better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on Thank you to all of those who are built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation joining us on this exciting new r people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better ilt on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on I very much look forward chapter. tion built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge to meeting with as many of you as r innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better uilt on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on next year. 2018 is going to possible edge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service bebetter a year of positive change for the r knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on – but before all that can NACFB e built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience begin, I want to wish all of those r service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better within ilt on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built onthe NACFB family a very merry ence built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people Christmas and happy new year. r experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better n better experience on better service innovationbridge built onloan better people built on better experience built on better • built Development exitbuilt loanon better knowledge built on•better Acquisition • Development exitservice loan built on better knowledge built on better innovation built on built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation Warm regards, • 9 new-build detached luxury homes • Site with consent for 77 student units • 5 apartments and 3 mews houses r people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better • built £6.0m loan,experience 18 monthbuilt term, 70.0%service LTV built on •better £3.8m loan, 3built month term, 50.0% LTV £3.6m loan, 12 month term,built 70.0% LTV service built on better knowledge built on ilt on better people on better on better knowledge on better innovation built on better•people built on better experience on better Graham Toy tion built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge r innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better CEO, NACFB uilt on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on edge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service r knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on e built on betterOctopus knowledge built is onthe better innovation on better people built on Fern better experience built on betterNino service on better knowledge built on better built on better people built on better experience Property trading name of built Bridgeco Ltd (Reg No 6629989), Trading Ltd (Reg No 6447318), Ltd built (Reg No 9015082), Octopus Property Lendinginnovation Ltd (Reg No 7531926) r service built on better knowledge on better innovation on better people built onLondon better experience built on better service onand better knowledge built on better innovation and Octopus Co-Lendbuilt Limited (Reg No 8913299),built Registered Office: 33 Holborn, EC1N 2HT, registered in England andbuilt Wales Dragonfly Finance S.ar.l.

(Reg No B189290) built on better people built on better ilt on better service built on better built on better innovation built on better people built on better experience built on Octopus better service built on better knowledge built on Limited better innovation built on better people built on Registered Office: Parcknowledge d’Activité Syrdall, 6 rue Gabriel Lippmann, L-5365 Munsbach, Luxembourg registered in Luxembourg.

Property Lending Ltd and Octopus Co-Lend ence built on better service built better knowledge builtConduct on better innovation built on better are authorised andon regulated by the Financial Authority.

For intermediary usepeople only built on better experience built on better service built on better knowledge built on better innovation built on better people r experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better n better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation

Welcome | NACFB

Octopus Property is a leading lender in the commercial, development and residential property markets.

We understand property and have an established track record that is built on better service, knowledge and innovation. Our performance speaks for itself and our commitment to providing flexible loans enables us to cover the market and support our clients, no matter how complex the requirement.

Recent Commercial Loans

Ruislip, Middlesex

Imperial Way, Croydon

Long Lane, London

Recent Development Loans

Kings Road, Reading

Chalk Farm, London

Wood Green, London

Recent Residential Loans

The Oaks, Sutton Valence

Ealing, London

Castle House, Tunbridge Wells

www.octopusproperty.com • sales@octopusproperty.com • 0800 2946850

T

Graham Toy CEO NACFB

In this December issue NACFB News 4-6 6-7 8

In the news Expanding our reach Notes from our sponsor

Commercial Finance 10-11 Essential news bites

Top Story 12

Number of IFIsa offerings on the rise

Introducing 14

Think Business Loans launches much-needed broker app

Case Studies 16

Fuelling two luxury refinance deals 18-19 Funding the transformation of redundant office space 20 Change-as-you-go loan enables swift completion 22 Healthcare expertise supports growing nursery

Special Features 34-35 Brokers: how you can support ‘made in Britain’ 36 Entering a new realm within P2P 38-39 Are you ready?

40-43 Three essential takeaways from the Autumn Budget

Compliance Updates 44-45 The thorny issue of complaint handling

Industry Guides 46

Channelling asset finance through the EFG scheme 48-49 Moving on to pastures new

Opinion & Commentary 50 52 54

Spread the word on the IFIsa It’s not enough to cheer us on The future is digital

Cover Story 24-28 Our 2017 gala dinner

Patron Profile 30-31 West One

Ask the Expert 32

John Byrne

For further information Kieran Jones, communications manager t. 020 7101 0359 Hamilton House, 1 Temple Avenue London EC4Y 0HA Email: Kieran.Jones@nacfb.org.uk Vera Sugar, editor t. 0203 818 0171 71 Gloucester Place, London W1U 8JW Email: vera@medianett.co.uk

ADVERTISING & EDITING: Medianett 0203 818 0163 www.medianett.co.uk DESIGN & PRODUCTION: Carbide Finger Ltd t. 0845 812 8206

NACFB Magazine | 3

NACFB | in the news Association news and updates for December 2017

A year of compliance

We’ve got a crush on you.

It’s been a busy year, from the initial implementation of NACFB Compliance Support through to seeing the compliance team support many challenges set by our Member firms and the visit support programmes.

T

he team has supported new Members’ FCA authorisations and built a bespoke compliance support function for our NACFB Members.

From the minimum standards reviews some of our Members have embraced the importance of operating within the new regulatory world and have the correct policies and procedures in place, driving the appropriate cultures.

Some firms have had actions to be completed to bring themselves up to the standards the Association expects. Many others have taken the feedback and carried out remedial actions, and reported on their progress. The Association has provided support when required and, in overall terms, the response from Members has been excellent, giving the Association statistical data to support the quality of NACFB brokers.

This initiative and the data it has produced is a key stage in the

4 | NACFB Magazine

Association being able to demonstrate to the SME market that NACFB brokers are set up to deliver professional services, and that clients can be confident in their dealings with our Members. It also gives funders the confidence that they are dealing with a quality-assured distribution channel for their lending products.

Outside the visit programme we have developed an in-house capability to give bespoke compliance support to Member firms. This support has helped Members amend their regulatory permissions, and for some, to apply for their FCA authorisation. Through the model office suite of documents brokers now have access to over 50 tools specifically designed for implementation within a broking firm.

The Association has seen an increase in complaints. We have been actively supporting our Members in handling these effectively and compliantly. Our sector will see complaints becoming more and more prevalent and having

the internal resources available to help Member firms, we believe, is an invaluable addition to the Association’s Member support framework.

We have hosted a series of workshops during the year, starting with business quality and finishing the year on GDPR themes. Both topics will continue into 2018 as we look to increase the scope of topics relevant for our Members.

NACFB Compliance Services has welcomed over 160 firms to our workshops this year, and we predict an increase in popularity over 2018.

The thought of your client demolishing and building from the ground up makes us giddy.

Nearly 700 Members are logging in to MyNACFB and completing their annual testing on AML, data protection and financial crime prevention, and to record their CPD. The Association has started to deliver new modules such as cybercrime, and training for the upcoming GDPR. With effective Member feedback, new modules will be developed and released over 2018.

Continued P6

Call us on 0203 846 6809 or visit intermediaries.lendinvest.com. LendInvest Limited is registered at 8 Mortimer Street, London, W1T 3JJ (Company 08146929).

ICO number ZA179467. Your client’s property may be repossessed if they do not keep up repayments on their mortgage. For intermediaries only.

NACFB | in the news Association news and updates for December 2017

A year of compliance

We’ve got a crush on you.

It’s been a busy year, from the initial implementation of NACFB Compliance Support through to seeing the compliance team support many challenges set by our Member firms and the visit support programmes.

T

he team has supported new Members’ FCA authorisations and built a bespoke compliance support function for our NACFB Members.

From the minimum standards reviews some of our Members have embraced the importance of operating within the new regulatory world and have the correct policies and procedures in place, driving the appropriate cultures.

Some firms have had actions to be completed to bring themselves up to the standards the Association expects. Many others have taken the feedback and carried out remedial actions, and reported on their progress. The Association has provided support when required and, in overall terms, the response from Members has been excellent, giving the Association statistical data to support the quality of NACFB brokers.

This initiative and the data it has produced is a key stage in the

4 | NACFB Magazine

Association being able to demonstrate to the SME market that NACFB brokers are set up to deliver professional services, and that clients can be confident in their dealings with our Members. It also gives funders the confidence that they are dealing with a quality-assured distribution channel for their lending products.

Outside the visit programme we have developed an in-house capability to give bespoke compliance support to Member firms. This support has helped Members amend their regulatory permissions, and for some, to apply for their FCA authorisation. Through the model office suite of documents brokers now have access to over 50 tools specifically designed for implementation within a broking firm.

The Association has seen an increase in complaints. We have been actively supporting our Members in handling these effectively and compliantly. Our sector will see complaints becoming more and more prevalent and having

the internal resources available to help Member firms, we believe, is an invaluable addition to the Association’s Member support framework.

We have hosted a series of workshops during the year, starting with business quality and finishing the year on GDPR themes. Both topics will continue into 2018 as we look to increase the scope of topics relevant for our Members.

NACFB Compliance Services has welcomed over 160 firms to our workshops this year, and we predict an increase in popularity over 2018.

The thought of your client demolishing and building from the ground up makes us giddy.

Nearly 700 Members are logging in to MyNACFB and completing their annual testing on AML, data protection and financial crime prevention, and to record their CPD. The Association has started to deliver new modules such as cybercrime, and training for the upcoming GDPR. With effective Member feedback, new modules will be developed and released over 2018.

Continued P6

Call us on 0203 846 6809 or visit intermediaries.lendinvest.com. LendInvest Limited is registered at 8 Mortimer Street, London, W1T 3JJ (Company 08146929).

ICO number ZA179467. Your client’s property may be repossessed if they do not keep up repayments on their mortgage. For intermediaries only.

NACFB NEWS

Looking towards 2018, we know and understand the demands on the Association to continue support for our Members in compliance matters, as firms are required to keep up-todate with changes in regulation, and adapt to recommendations from FCA supervisory activity, such as the impending motor finance review.

You can book your free consultation today simply by emailing: compliance@nacfb.org.uk with a contact telephone number and a convenient timing for our team to call you.

NACFB asset finance day

T

he NACFB hosted a dedicated asset finance day that catered specifically for our asset finance Members. The event, which took place in Bolton in mid-November, was sponsored by NACFB Patrons Shawbrook Asset Finance, Hitachi, Aldermore and Investec.

A strong turn-out of NACFB broker Members ensured that the roundtable event was the ideal forum to discuss processes and products impacting those operating in the space.

The group also benefited from a complimentary compliance workshop from Roger Deane, managing director of NACFB Compliance Services. Roger outlined the regulatory hurdles and potential compliance pitfalls asset finance brokers may encounter in the lifecycle of a deal.

Norman Chambers concluded the day by outlining the scope and vision for the Association in 2018. Part of this outlook includes a series of events targeting specific practice areas, providing a platform for lenders and brokers to engage and collaborate.

Member update At the time of going to print, we count a total of:

823 Member firms 135 Patrons.

6 | NACFB Magazine

NACFB NEWS

Expanding our reach Over 5,000 people attended an NACFBsupported event in 2017. From headline events, such as the CFE and gala dinner, to Members’ days and compliance workshops, the NACFB remains committed to engaging with its Members face-to-face.

A AGM E Expo

T

he Association has supported 40 events throughout the country this year, with the topic diversity set to broaden even further in 2018.

W Workshop

From Bristol to Barnsley, Devon to Edinburgh, the NACFB has sought to provide greater value and direct support to brokers closer to their operational base, and has teamed up with lenders to provide events that span the full cycle of a commercial finance deal.

R Roadshow

W

B Broker day

A common piece of feedback received from our Members was that events were too London-centric. This year we sought to address this and as you can see, less than 25 per cent of events supported by the NACFB in 2017 fell within the M25.

P Property development day

R W

R

What value is there in attending an NACFB event?

Member brokers find such events are an invaluable resource in terms of their educational function and providing an ideal forum to share ideas on products and processes in the commercial finance sector.

Next year will see the NACFB refine its events focus, both in terms of where events and workshops are hosted but also in terms of what subjects are covered. Keep an eye out for more sector-specific events, tailored to areas of commercial finance where we are seeing a demand for educational and networking days.

R

W W

B

W

R

W

R R

2018 events We already have a host of events planned for 2018, and we hope to see you at any of the following: Event

Location

Date

LendInvest Property Development Course

Location TBC

1st March

LendInvest Property Development Course

London

7th June

Commercial Finance Expo

Birmingham

20th June

LendInvest Property Development Course

Location TBC

13th September

LendInvest Property Development Course

London

15th November

NACFB Gala Dinner

London

29th November

W

E W W R B R P B

R W

W

A G P

W

R

R

W W

R

If you would like to host, sponsor or contribute to our 2018 events calendar please do contact our events manager, Andrina Dhillon.

NACFB Magazine | 7

NACFB NEWS

Looking towards 2018, we know and understand the demands on the Association to continue support for our Members in compliance matters, as firms are required to keep up-todate with changes in regulation, and adapt to recommendations from FCA supervisory activity, such as the impending motor finance review.

You can book your free consultation today simply by emailing: compliance@nacfb.org.uk with a contact telephone number and a convenient timing for our team to call you.

NACFB asset finance day

T

he NACFB hosted a dedicated asset finance day that catered specifically for our asset finance Members. The event, which took place in Bolton in mid-November, was sponsored by NACFB Patrons Shawbrook Asset Finance, Hitachi, Aldermore and Investec.

A strong turn-out of NACFB broker Members ensured that the roundtable event was the ideal forum to discuss processes and products impacting those operating in the space.

The group also benefited from a complimentary compliance workshop from Roger Deane, managing director of NACFB Compliance Services. Roger outlined the regulatory hurdles and potential compliance pitfalls asset finance brokers may encounter in the lifecycle of a deal.

Norman Chambers concluded the day by outlining the scope and vision for the Association in 2018. Part of this outlook includes a series of events targeting specific practice areas, providing a platform for lenders and brokers to engage and collaborate.

Member update At the time of going to print, we count a total of:

823 Member firms 135 Patrons.

6 | NACFB Magazine

NACFB NEWS

Expanding our reach Over 5,000 people attended an NACFBsupported event in 2017. From headline events, such as the CFE and gala dinner, to Members’ days and compliance workshops, the NACFB remains committed to engaging with its Members face-to-face.

A AGM E Expo

T

he Association has supported 40 events throughout the country this year, with the topic diversity set to broaden even further in 2018.

W Workshop

From Bristol to Barnsley, Devon to Edinburgh, the NACFB has sought to provide greater value and direct support to brokers closer to their operational base, and has teamed up with lenders to provide events that span the full cycle of a commercial finance deal.

R Roadshow

W

B Broker day

A common piece of feedback received from our Members was that events were too London-centric. This year we sought to address this and as you can see, less than 25 per cent of events supported by the NACFB in 2017 fell within the M25.

P Property development day

R W

R

What value is there in attending an NACFB event?

Member brokers find such events are an invaluable resource in terms of their educational function and providing an ideal forum to share ideas on products and processes in the commercial finance sector.

Next year will see the NACFB refine its events focus, both in terms of where events and workshops are hosted but also in terms of what subjects are covered. Keep an eye out for more sector-specific events, tailored to areas of commercial finance where we are seeing a demand for educational and networking days.

R

W W

B

W

R

W

R R

2018 events We already have a host of events planned for 2018, and we hope to see you at any of the following: Event

Location

Date

LendInvest Property Development Course

Location TBC

1st March

LendInvest Property Development Course

London

7th June

Commercial Finance Expo

Birmingham

20th June

LendInvest Property Development Course

Location TBC

13th September

LendInvest Property Development Course

London

15th November

NACFB Gala Dinner

London

29th November

W

E W W R B R P B

R W

W

A G P

W

R

R

W W

R

If you would like to host, sponsor or contribute to our 2018 events calendar please do contact our events manager, Andrina Dhillon.

NACFB Magazine | 7

THE TEAM FOR BRIDGING LOANS

NACFB NEWS

Notes from our sponsor Karen Bennett Managing director of commercial mortgages Shawbrook Bank

Another exciting year draws to a close and the pace of the festive month has been unrelenting.

WE

I

n spite of the many challenges we have faced as an industry over the past 12 months, the impact of any turbulence on activity seems to have been relatively minor. This is perhaps surprising when you consider the significance of the various changes, and we will no doubt see the arrival of some more meaningful consequences once these developments begin to wash through.

COMMERCIAL

RETAIL

INDUSTRIAL

SHOPS

DO

ASTs

INVESTMENT

RESIDENTIAL

HOTELS

IT

OFFICES

INVESTORS

ALL!

C

M

Y

CM

MY

From a Shawbrook perspective, we have been delighted with 2017 and look forward with a great deal of optimism. The various changes to the affordability landscape represented one of the more challenging occurrences of the year, and while some were forced to make some fairly radical shifts to distribution and process, our appetite and ability to lend across our various markets remains undimmed. Having said that, this year has not been without its problems and there were undoubtedly some speed bumps along the way that were resolved due to the hard work of our dedicated teams, and the close relationship we have with the broker and intermediary community.

Feedback is crucial to the evolution of any proposition and fortunately for us, the participants in our industry are always fairly vocal. Much of this feedback has been around systems and platforms, and has resulted in continuous improvement to the digital touchpoints with our distribution.

In fact, technology seems to be one of the buzz words currently dominating the C-suite and there has

CY

CMY

K

never been a greater focus on this key area. Shawbrook is no different and we continue to build and invest in our systems to bring greater efficiencies to our brokers. Next year will see improvements to the digital journey, but it must be emphasised that this remains a relationship business. Striking the right balance between people and technology gives lenders the flexibility to deliver for brokers and customers in need of a personal service, and this remains an important consideration. Radical improvements to technology in the shape of AI-led delivery models may well be cresting the horizon over the next decade, but until such time, the value of a phone number still holds true, particularly given the current pace of change within the industry.

This year was a positive one in many ways, with a highlight being the

opportunity to continue our support of the NACFB as title sponsor. This has been a four-year journey for Shawbrook, and looking back over our time with the Association is hugely gratifying, given our involvement in some great initiatives against the backdrop of significant regulatory and governmental change. The importance of leadership, training and education has never been more significant, and these are undoubtedly high on the agenda as we move into the new year. I would like to thank the NACFB for their work and support over the past four years, and I look forward to retaining a strong voice as a Patron moving forward.

In the meantime, I wish you all a very merry Christmas, a happy new year and I’ll be sure to raise a glass (or 10) to a positive 2018.

FACTORIES

OWNER OCCUPIERS

Let’s Talk!

COM M ERCIAL

•

020 8349 5190 sayhello@alternativebridging.co.uk @ABC_Bridging

RESIDENT I AL

•

A PRINCIPAL LENDER 8 | NACFB Magazine

DEVELOP ME N T

THE TEAM FOR BRIDGING LOANS

NACFB NEWS

Notes from our sponsor Karen Bennett Managing director of commercial mortgages Shawbrook Bank

Another exciting year draws to a close and the pace of the festive month has been unrelenting.

WE

I

n spite of the many challenges we have faced as an industry over the past 12 months, the impact of any turbulence on activity seems to have been relatively minor. This is perhaps surprising when you consider the significance of the various changes, and we will no doubt see the arrival of some more meaningful consequences once these developments begin to wash through.

COMMERCIAL

RETAIL

INDUSTRIAL

SHOPS

DO

ASTs

INVESTMENT

RESIDENTIAL

HOTELS

IT

OFFICES

INVESTORS

ALL!

C

M

Y

CM

MY

From a Shawbrook perspective, we have been delighted with 2017 and look forward with a great deal of optimism. The various changes to the affordability landscape represented one of the more challenging occurrences of the year, and while some were forced to make some fairly radical shifts to distribution and process, our appetite and ability to lend across our various markets remains undimmed. Having said that, this year has not been without its problems and there were undoubtedly some speed bumps along the way that were resolved due to the hard work of our dedicated teams, and the close relationship we have with the broker and intermediary community.

Feedback is crucial to the evolution of any proposition and fortunately for us, the participants in our industry are always fairly vocal. Much of this feedback has been around systems and platforms, and has resulted in continuous improvement to the digital touchpoints with our distribution.

In fact, technology seems to be one of the buzz words currently dominating the C-suite and there has

CY

CMY

K

never been a greater focus on this key area. Shawbrook is no different and we continue to build and invest in our systems to bring greater efficiencies to our brokers. Next year will see improvements to the digital journey, but it must be emphasised that this remains a relationship business. Striking the right balance between people and technology gives lenders the flexibility to deliver for brokers and customers in need of a personal service, and this remains an important consideration. Radical improvements to technology in the shape of AI-led delivery models may well be cresting the horizon over the next decade, but until such time, the value of a phone number still holds true, particularly given the current pace of change within the industry.

This year was a positive one in many ways, with a highlight being the

opportunity to continue our support of the NACFB as title sponsor. This has been a four-year journey for Shawbrook, and looking back over our time with the Association is hugely gratifying, given our involvement in some great initiatives against the backdrop of significant regulatory and governmental change. The importance of leadership, training and education has never been more significant, and these are undoubtedly high on the agenda as we move into the new year. I would like to thank the NACFB for their work and support over the past four years, and I look forward to retaining a strong voice as a Patron moving forward.

In the meantime, I wish you all a very merry Christmas, a happy new year and I’ll be sure to raise a glass (or 10) to a positive 2018.

FACTORIES

OWNER OCCUPIERS

Let’s Talk!

COM M ERCIAL

•

020 8349 5190 sayhello@alternativebridging.co.uk @ABC_Bridging

RESIDENT I AL

•

A PRINCIPAL LENDER 8 | NACFB Magazine

DEVELOP ME N T

Commercial Finance

James Bloom appointed MD of short-term lending at Masthaven

65% of brokers report bridging loan volume increase

33% of commercial investors suggested that Germany is their preferred region to invest in, according to research by BrickVest.

The online real estate investment platform’s barometer revealed that for the first time Germany has been chosen as the number one region to invest in, ahead of the UK (27%).

UK, German and US investors favoured the UK less than last year.

Bank of Ireland UK launches online offer service for brokers Bank of Ireland UK has launched a new online offer service for brokers.

Mortgage offers will now be available for brokers to view and download online via Bank of Ireland’s mortgage application system.

Brokers will receive an email once their client’s case has gone to offer. Online and hard copies will also be sent to the client and their solicitor.

Turnover of UK’s top 500 hotel companies hits £13bn The turnover of the UK’s top 500 hotel companies increased 5% last year to £13bn (2015/16: £12.4bn), according to Ortus Secured Finance.

The lender claimed that the rise in international visitors and British people holidaying in the UK has helped to drive the turnover of the UK’s top 500 hotel companies to a five-year high.

James Bloom has been appointed to the role of managing director for Masthaven’s shortterm lending division.

The post – which James took up on 1st December – encompasses the specialist bank’s bridging and development finance lending teams.

Since joining Masthaven from Regentsmead, James has held the position of managing director of the development finance team.

Innovate UK makes £10m available to SMEs Up to £10m is available in loans to UK SMEs via a pilot programme offered

by Innovate UK. SMEs working on late-stage infrastructure systems projects can apply for a share of £10m in the loans competition.

The aim is to help businesses overcome barriers to scaling up innovation in infrastructure systems by enabling them to demonstrate their ideas in real-world applications.

Commercial property investors favour Germany over UK

Start Up Loans programme delivers over £350m An independent review of the Start Up Loans programme revealed more than £350m of funding was provided to start-ups and early-stage business across the UK. 35% of those surveyed stated they wouldn’t have started a business at all without the programme’s support.

The scheme, operated by a subsidiary of the British Business Bank, has delivered over 50,000 loans since launching in 2012.

Almost two-thirds of brokers (65%) reported increased bridging loan volumes in Q3 2017, a rise on 48% in Q2, according to bridging lender MTF’s latest broker sentiment survey.

For the first time, 9% of the 96 brokers surveyed highlighted increased demand in Scotland and Northern Ireland.

Some 69% of brokers claimed the bridging process took longer than it did 12 months ago.

Government names small business commissioner Paul Uppal has been appointed to the newly established role of small business commissioner.

Mr Uppal will lead an independent office tasked with empowering small businesses, providing advice and information regarding resolving disputes with larger businesses and help to drive a culture change in payment practices.

Mr Uppal has 20 years’ experience as a business owner in the real estate sector.

Debt trading platform RCX now accepts bitcoin Racefields has announced that investors will now be able to invest in debt securities using bitcoin following an update to its RCX debt trading platform.

The new service launched in November and allows bitcoin owners to bid on investment opportunities just as a cash user would.

Racefields will process transactions via its regulated bitcoin exchange partner based in the Netherlands.

LendingCrowd funds 33 Scottish SMEs

Alternative finance provider LendingCrowd has completed 33 loan deals, worth £3m, to Scottish SMEs following its partnership with Scottish Enterprise.

In October 2016, LendingCrowd received £2.75m from Scottish Enterprise to lend across its platform to SMEs north of the border.

Stuart Lunn, CEO and cofounder of LendingCrowd, said the firm was targeting £15m of loans to Scottish SMEs in 2018.

Together, powering UK businesses to grow With award winning service and over 30 years of expertise, Hitachi Capital Business Finance provides a flexible range of asset finance solutions – powering businesses of all sizes, across sectors and specialities.

Asset Finance Block Discounting Stocking Invoice Finance To power your business call us today

01784 227322 hitachicapital.co.uk/business-finance

LendInvest enters BTL market

LendInvest has announced the launch of its BTL product for experienced, professional property investors and landlords operating in England, Wales and Scotland.

The new product was developed with portfolio landlords in mind and caters for the full spectrum of the residential property investment market.

Brokers can apply for the BTL product on behalf of their clients via LendInvest’s online platform.

Ultimate Finance posts surge in asset finance lending Ultimate Finance Group has experienced major asset finance growth, with money advanced up 65% from September 2016 to September 2017.

The lender also reported a 60% rise in the number of asset finance clients in the same period.

The increase has been matched by internal expansion, with the company reporting a 50% increase in asset finance staff this year.

Commercial Finance

James Bloom appointed MD of short-term lending at Masthaven

65% of brokers report bridging loan volume increase

33% of commercial investors suggested that Germany is their preferred region to invest in, according to research by BrickVest.

The online real estate investment platform’s barometer revealed that for the first time Germany has been chosen as the number one region to invest in, ahead of the UK (27%).

UK, German and US investors favoured the UK less than last year.

Bank of Ireland UK launches online offer service for brokers Bank of Ireland UK has launched a new online offer service for brokers.

Mortgage offers will now be available for brokers to view and download online via Bank of Ireland’s mortgage application system.

Brokers will receive an email once their client’s case has gone to offer. Online and hard copies will also be sent to the client and their solicitor.

Turnover of UK’s top 500 hotel companies hits £13bn The turnover of the UK’s top 500 hotel companies increased 5% last year to £13bn (2015/16: £12.4bn), according to Ortus Secured Finance.

The lender claimed that the rise in international visitors and British people holidaying in the UK has helped to drive the turnover of the UK’s top 500 hotel companies to a five-year high.

James Bloom has been appointed to the role of managing director for Masthaven’s shortterm lending division.

The post – which James took up on 1st December – encompasses the specialist bank’s bridging and development finance lending teams.

Since joining Masthaven from Regentsmead, James has held the position of managing director of the development finance team.

Innovate UK makes £10m available to SMEs Up to £10m is available in loans to UK SMEs via a pilot programme offered

by Innovate UK. SMEs working on late-stage infrastructure systems projects can apply for a share of £10m in the loans competition.

The aim is to help businesses overcome barriers to scaling up innovation in infrastructure systems by enabling them to demonstrate their ideas in real-world applications.

Commercial property investors favour Germany over UK

Start Up Loans programme delivers over £350m An independent review of the Start Up Loans programme revealed more than £350m of funding was provided to start-ups and early-stage business across the UK. 35% of those surveyed stated they wouldn’t have started a business at all without the programme’s support.

The scheme, operated by a subsidiary of the British Business Bank, has delivered over 50,000 loans since launching in 2012.

Almost two-thirds of brokers (65%) reported increased bridging loan volumes in Q3 2017, a rise on 48% in Q2, according to bridging lender MTF’s latest broker sentiment survey.

For the first time, 9% of the 96 brokers surveyed highlighted increased demand in Scotland and Northern Ireland.

Some 69% of brokers claimed the bridging process took longer than it did 12 months ago.

Government names small business commissioner Paul Uppal has been appointed to the newly established role of small business commissioner.

Mr Uppal will lead an independent office tasked with empowering small businesses, providing advice and information regarding resolving disputes with larger businesses and help to drive a culture change in payment practices.

Mr Uppal has 20 years’ experience as a business owner in the real estate sector.

Debt trading platform RCX now accepts bitcoin Racefields has announced that investors will now be able to invest in debt securities using bitcoin following an update to its RCX debt trading platform.

The new service launched in November and allows bitcoin owners to bid on investment opportunities just as a cash user would.

Racefields will process transactions via its regulated bitcoin exchange partner based in the Netherlands.

LendingCrowd funds 33 Scottish SMEs

Alternative finance provider LendingCrowd has completed 33 loan deals, worth £3m, to Scottish SMEs following its partnership with Scottish Enterprise.

In October 2016, LendingCrowd received £2.75m from Scottish Enterprise to lend across its platform to SMEs north of the border.

Stuart Lunn, CEO and cofounder of LendingCrowd, said the firm was targeting £15m of loans to Scottish SMEs in 2018.

Together, powering UK businesses to grow With award winning service and over 30 years of expertise, Hitachi Capital Business Finance provides a flexible range of asset finance solutions – powering businesses of all sizes, across sectors and specialities.

Asset Finance Block Discounting Stocking Invoice Finance To power your business call us today

01784 227322 hitachicapital.co.uk/business-finance

LendInvest enters BTL market

LendInvest has announced the launch of its BTL product for experienced, professional property investors and landlords operating in England, Wales and Scotland.

The new product was developed with portfolio landlords in mind and caters for the full spectrum of the residential property investment market.

Brokers can apply for the BTL product on behalf of their clients via LendInvest’s online platform.

Ultimate Finance posts surge in asset finance lending Ultimate Finance Group has experienced major asset finance growth, with money advanced up 65% from September 2016 to September 2017.

The lender also reported a 60% rise in the number of asset finance clients in the same period.

The increase has been matched by internal expansion, with the company reporting a 50% increase in asset finance staff this year.

Top | story

Business-boosting loans up to £500,000

Our pick of the latest Patron news

Fixed rate loans with no set up fees or early repayment charges Security may be required. Product fees may apply.

Over 18s only. Business turnover of up to £2 million.

Excludes refinance and Commercial Real Estate Finance.

Number of IFIsa offerings on the rise Vera Sugar Editor NACFB Magazine

T

he number of available IFIsa products in the P2P market is about to increase rapidly, with several of the biggest lenders in the field recently announcing their plans to launch the offering.

Funding Circle has confirmed it would roll out its Isa account from 30th November onwards, allowing access to the offering in stages: investors who are actively lending (have lent to a business since 1st May 2017) investors not actively lending but who have previously transferred in funds investors who have not previously transferred in funds new investors and those who have opened a classic account after 23rd November 2017.

In preparation for the anticipated high demand, the lender said it will not initially allow transfers of existing Isas to its platform.

RateSetter, another one of the ‘big three’, has announced it would be launching its IFIsa offering before the end of March 2018. Speaking to the Financial Times, Rhydian

Lewis, co-founder of RateSetter, said the lender would be offering a 4.1% return, expecting to raise £500m of investment within a year after launching the product.

and the fact that we will make all of our investment accounts available through that Isa (with no change in interest rates or new fees), this level of interest is not surprising,” he added.

Peter Behrens, co-founder and chief operating officer at RateSetter, said: “RateSetter’s Innovative Finance Isa will be launched in good time for the end of this tax year. It will allow RateSetter lenders to enjoy access to the risks and rewards of the asset class of lending, within a tax-free wrapper – thereby providing a welcome boost to the returns that lenders receive, particularly in the case of higher rate taxpayers.

Lendy shared its plans to launch an IFIsa offering earlier this year, and is currently working with the FCA to obtain full authorisation (see page 50).

“We also expect that the introduction of the RateSetter Isa will attract new lenders, and increase the supply of money into the RateSetter market.”

Assetz Capital has also announced its plans in November to launch an IFIsa offering before Christmas, after receiving full authorisation from the FCA in September. Speaking to Peer2Peer Finance News, the lender confirmed the offering would be available to both existing and new customers without additional charges.

Stuart Law, CEO at Assetz Capital, said the decision to launch the IFIsa offering was based on initial interest registered by around 8,000 existing customers.

Numbers released by HMRC in August 2017 showed the product had still some way to go before becoming a mainstream offering, claiming just £17m had been invested across 2,000 accounts in the 2016/17 tax year. The long process of obtaining full authorisation is often cited as a key reason for this. However, 2017 saw several larger lenders obtain authorisation, such as Funding Circle in May 2017, Assetz Capital in September and RateSetter in October.

It is important to note that take-up of IFIsa offerings may not necessarily mean a sudden, large boost in P2P lending, rather that investors are shifting their lending from different Isas into the new account. However, the P2P sector has already demonstrated a steady growth in 2017, with more than £700m lent during Q3 2017, according to the Peer-to-Peer Finance Association.

Additionally, with more P2P lenders obtaining full authorisation, 2018 could truly go on to be the year of the IFIsa.

Email us at brokerteam@natwest.com

“Given the potential to enhance net of tax returns by the use of an Isa

ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER DEBT SECURED ON IT. 12 | NACFB Magazine

Top | story

Business-boosting loans up to £500,000

Our pick of the latest Patron news

Fixed rate loans with no set up fees or early repayment charges Security may be required. Product fees may apply.

Over 18s only. Business turnover of up to £2 million.

Excludes refinance and Commercial Real Estate Finance.

Number of IFIsa offerings on the rise Vera Sugar Editor NACFB Magazine

T

he number of available IFIsa products in the P2P market is about to increase rapidly, with several of the biggest lenders in the field recently announcing their plans to launch the offering.

Funding Circle has confirmed it would roll out its Isa account from 30th November onwards, allowing access to the offering in stages: investors who are actively lending (have lent to a business since 1st May 2017) investors not actively lending but who have previously transferred in funds investors who have not previously transferred in funds new investors and those who have opened a classic account after 23rd November 2017.

In preparation for the anticipated high demand, the lender said it will not initially allow transfers of existing Isas to its platform.

RateSetter, another one of the ‘big three’, has announced it would be launching its IFIsa offering before the end of March 2018. Speaking to the Financial Times, Rhydian

Lewis, co-founder of RateSetter, said the lender would be offering a 4.1% return, expecting to raise £500m of investment within a year after launching the product.

and the fact that we will make all of our investment accounts available through that Isa (with no change in interest rates or new fees), this level of interest is not surprising,” he added.

Peter Behrens, co-founder and chief operating officer at RateSetter, said: “RateSetter’s Innovative Finance Isa will be launched in good time for the end of this tax year. It will allow RateSetter lenders to enjoy access to the risks and rewards of the asset class of lending, within a tax-free wrapper – thereby providing a welcome boost to the returns that lenders receive, particularly in the case of higher rate taxpayers.

Lendy shared its plans to launch an IFIsa offering earlier this year, and is currently working with the FCA to obtain full authorisation (see page 50).

“We also expect that the introduction of the RateSetter Isa will attract new lenders, and increase the supply of money into the RateSetter market.”

Assetz Capital has also announced its plans in November to launch an IFIsa offering before Christmas, after receiving full authorisation from the FCA in September. Speaking to Peer2Peer Finance News, the lender confirmed the offering would be available to both existing and new customers without additional charges.

Stuart Law, CEO at Assetz Capital, said the decision to launch the IFIsa offering was based on initial interest registered by around 8,000 existing customers.

Numbers released by HMRC in August 2017 showed the product had still some way to go before becoming a mainstream offering, claiming just £17m had been invested across 2,000 accounts in the 2016/17 tax year. The long process of obtaining full authorisation is often cited as a key reason for this. However, 2017 saw several larger lenders obtain authorisation, such as Funding Circle in May 2017, Assetz Capital in September and RateSetter in October.

It is important to note that take-up of IFIsa offerings may not necessarily mean a sudden, large boost in P2P lending, rather that investors are shifting their lending from different Isas into the new account. However, the P2P sector has already demonstrated a steady growth in 2017, with more than £700m lent during Q3 2017, according to the Peer-to-Peer Finance Association.

Additionally, with more P2P lenders obtaining full authorisation, 2018 could truly go on to be the year of the IFIsa.

Email us at brokerteam@natwest.com

“Given the potential to enhance net of tax returns by the use of an Isa

ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER DEBT SECURED ON IT. 12 | NACFB Magazine

Introducing New and refreshed offerings for NACFB brokers on behalf of Patrons and Members

Think Business Loans launches Commercial Finance much-needed broker app

Sales [Re-Engineered]

Jamie Stewart Director Think Business Loans

C

ommercial finance brokerage and NACFB Member Think Business Loans has launched a new cloud-based application, TheThinkApp, to assist intermediaries with day-to-day case management throughout the loan process.

The CRM, tendering platform and matching app allows intermediaries to contact, match and process applications directly, all in one place, with the ability to compare clients against the criteria and prequalification of over 200 lenders. work the coatings so that, through

Users can filter results using our iFunds lender matching software, based on the data collected from the client and through connecting the customer’s accountancy software, open banking and credit agencies to give a real-time result. This means brokers can advise their clients instantly, collect all the relevant supporting documents at the push of a button and then apply to that lender via the lender platform.

Once the application is in credit, brokers can monitor the progress in real time and also connect directly with that lender via a live chat function.

The app also connects to several third party data feeds, including credit agencies and banks. In addition, with open banking coming into force in January 2018, the software will also allow direct access for brokers to their clients’ bank statements.

As a result of TheThinkApp we have seen our company grow by 1000% in 12 months, and that growth can

14 | NACFB Magazine

economies ofcloud scale and efficiency TheThinkApp® is a multi-platform, based, endofto end operating application, combining a state of the art sales CRM, lender matching software the app, you actually get a team for (iFunds®), loan app tenderinghalfplatform, front end/customer facing website and portal and API connected data feed agent, with shared connection to the price of hiring your own. third party data feeds (credit agencies, bank, companies house, and accountancy software). We developed TheThinkApp to give intermediaries and We also have exclusive access to brokers technology and support they need to stay ahead, enabling them to automate, streamline, and scale their business.

Once thethe application some award winning open banking API software, which would cost an

is in credit, brokers individual user over £4,000 a month to licence, all built in as part of the Comprehensive CRM & aggregator platform that instantly matches your clients eligibility against 200+ Lenders can monitor the package. This makes our offering not only a great starting platform Advise your real time about options with toour dynamic iFunds® matching progress inclient realintime for newtheir brokers to get access over 200 lenders, but also existing technology. Allowing you to focus your attention on only eligible lenders, then apply and and also connect brokers, as a replacement to their submit directly to them via the platforms API connections. bulky Salesforce or other CRMs. directly with that It’s also a CRM enables docs brokersand pdfs (with our state of TheThinkApp ensures 100% compliance by that checking lender a live chat manage their prospects, grade the art via underwriting software, to and opps team) as well as cross referencing against them and use any of 60 branded companies house, due-dil and credit referenceInagncies function email templates. addition,to ensure richness of application.

SMS compliant, capabilities allow This ensures not only are we FCA but them also the likelihood be directly attributed to both our to get on with building their the lenders is increased considerably. lending technicians and the app itself. business and this industry.

The licence is based on commission splits, which in essence means you This is a service completely designed only pay when you close business. for commercial finance brokers, and has been designed to side-step Not only do you have full use of the the daily hurdles we all face. end-to-end capabilities, but also our operations team. We made sure to

of final offer from

Power Your Brokerage with iFunds® & TheThinkApp® Engage your clients - Our State of the art CRM allows you to manage callbacks, submit apps, email, review and set comms, and access reporting, all in one place.

Open Banking API - Be one of the first in the UK with access to your clients bank statements at the push of a button.

API Connectivity - Credit check your clients & connect to

Introducing New and refreshed offerings for NACFB brokers on behalf of Patrons and Members

Think Business Loans launches Commercial Finance much-needed broker app

Sales [Re-Engineered]

Jamie Stewart Director Think Business Loans

C

ommercial finance brokerage and NACFB Member Think Business Loans has launched a new cloud-based application, TheThinkApp, to assist intermediaries with day-to-day case management throughout the loan process.

The CRM, tendering platform and matching app allows intermediaries to contact, match and process applications directly, all in one place, with the ability to compare clients against the criteria and prequalification of over 200 lenders. work the coatings so that, through

Users can filter results using our iFunds lender matching software, based on the data collected from the client and through connecting the customer’s accountancy software, open banking and credit agencies to give a real-time result. This means brokers can advise their clients instantly, collect all the relevant supporting documents at the push of a button and then apply to that lender via the lender platform.

Once the application is in credit, brokers can monitor the progress in real time and also connect directly with that lender via a live chat function.

The app also connects to several third party data feeds, including credit agencies and banks. In addition, with open banking coming into force in January 2018, the software will also allow direct access for brokers to their clients’ bank statements.

As a result of TheThinkApp we have seen our company grow by 1000% in 12 months, and that growth can

14 | NACFB Magazine

economies ofcloud scale and efficiency TheThinkApp® is a multi-platform, based, endofto end operating application, combining a state of the art sales CRM, lender matching software the app, you actually get a team for (iFunds®), loan app tenderinghalfplatform, front end/customer facing website and portal and API connected data feed agent, with shared connection to the price of hiring your own. third party data feeds (credit agencies, bank, companies house, and accountancy software). We developed TheThinkApp to give intermediaries and We also have exclusive access to brokers technology and support they need to stay ahead, enabling them to automate, streamline, and scale their business.

Once thethe application some award winning open banking API software, which would cost an

is in credit, brokers individual user over £4,000 a month to licence, all built in as part of the Comprehensive CRM & aggregator platform that instantly matches your clients eligibility against 200+ Lenders can monitor the package. This makes our offering not only a great starting platform Advise your real time about options with toour dynamic iFunds® matching progress inclient realintime for newtheir brokers to get access over 200 lenders, but also existing technology. Allowing you to focus your attention on only eligible lenders, then apply and and also connect brokers, as a replacement to their submit directly to them via the platforms API connections. bulky Salesforce or other CRMs. directly with that It’s also a CRM enables docs brokersand pdfs (with our state of TheThinkApp ensures 100% compliance by that checking lender a live chat manage their prospects, grade the art via underwriting software, to and opps team) as well as cross referencing against them and use any of 60 branded companies house, due-dil and credit referenceInagncies function email templates. addition,to ensure richness of application.

SMS compliant, capabilities allow This ensures not only are we FCA but them also the likelihood be directly attributed to both our to get on with building their the lenders is increased considerably. lending technicians and the app itself. business and this industry.

The licence is based on commission splits, which in essence means you This is a service completely designed only pay when you close business. for commercial finance brokers, and has been designed to side-step Not only do you have full use of the the daily hurdles we all face. end-to-end capabilities, but also our operations team. We made sure to

of final offer from

Power Your Brokerage with iFunds® & TheThinkApp® Engage your clients - Our State of the art CRM allows you to manage callbacks, submit apps, email, review and set comms, and access reporting, all in one place.

Open Banking API - Be one of the first in the UK with access to your clients bank statements at the push of a button.

API Connectivity - Credit check your clients & connect to

Case Studies Completion highlights from a selection of our Patrons and Members

Fuelling two luxury refinance deals Isaac Hooper Account manager Liberty Leasing

D

ue to the type and potential age of assets in the classic, prestige and race car markets, the transactions in this field tend to be refinancing deals that involve careful structuring. Back in 2005, Liberty Leasing recognised an opportunity to enter this market and since that time has built a solid reputation for dealing with these assets.

In March 2017, we were approached by one of our brokers who had an ultra-high-net-worth client with a refinance proposal for four classic cars – including an Aston Martin DB5 and a Ferrari 288 GTO – with a cumulative value of £4m. At an agreed lend value of £2.5m, this was Liberty’s largest-ever deal.

The nature of a refinance tends to involve a higher level of work and expertise. For example, the assets were viewed and valued by a specialist third party under the instruction of our asset team. With the director of the company being a foreign national with a limited profile in the UK, this involved extra due diligence.

The main reason for the client to refinance the vehicles was to release funds from the asset to allow for a cash injection into the business while maintaining manageable payments. With this in mind, the deal was structured to include balloons along with longer terms.

I went to meet the director of the business in Mayfair, and was responsible for the deal throughout the whole process.

I also remain the main point of contact for the introducer.

Sales and operations director Paul Sheedy also attended the meeting. He said: “While it feels

like a natural progression, it’s great to see Liberty dealing with large-ticket deals, particularly this year, providing finance for two of their largest deals ever.

“As we’ve grown, we’ve continued to push the boundaries of what we can offer and are in a position where we are confident to handle larger transactions. We’ve made considerable investments in our infrastructure and systems with an in-house asset and legal department, as well as employing Richard Bristow as head of credit last year.

“Isaac has done a fantastic job, having been with the company for two years, coming through our training programme and being mentored by area manager Lewis Banford. Liberty is passionate about nurturing new talent and believes it is vital for the future of the asset finance industry.”

This deal set something of a trend at Liberty, with our second-largest deal paying out in August, also handled by Isaac. Our south-east account management team was introduced to a refinance proposal

for two classic Jaguar Le Mans cars worth £2.5m, with a lend of £1.56m.

This deal presented some challenges that required negotiations between Liberty and the invoice discounting company in order to complete the transaction. The client benefited from the refinancing in a number of ways as we were able to settle outstanding finance, while applying residual balloon payments to facilitate lower repayments, as well as creating equity for the client.

A short-term let product which isn’t short on common sense Our new holiday let product is ideal for landlords who want to purchase or remortgage a property for short-term letting. It’s available on a first or second charge basis.

We’ll consider many income sources, credit profiles and property types. If we can help, we will.

It’s what we call common sense lending.

While recognising its strength within the car markets, Liberty understands the importance of not placing all its eggs in one basket. It continues to work hard to diversify the asset types it deals with. Angelo Stephens was a welcome addition to the asset team in 2016, with specialist experience in plant and agricultural machinery.

Personal service has been and always will remain key at Liberty, as it allows them to spend more time with the client and understand the transaction, ensuring a deal can be crafted and structured in a way that is viable and ultimately benefits the client.

For more information call 0161 933 7065

togethermoney.com/intermediaries For professional intermediary use only

16 | NACFB Magazine

Case Studies Completion highlights from a selection of our Patrons and Members

Fuelling two luxury refinance deals Isaac Hooper Account manager Liberty Leasing

D

ue to the type and potential age of assets in the classic, prestige and race car markets, the transactions in this field tend to be refinancing deals that involve careful structuring. Back in 2005, Liberty Leasing recognised an opportunity to enter this market and since that time has built a solid reputation for dealing with these assets.

In March 2017, we were approached by one of our brokers who had an ultra-high-net-worth client with a refinance proposal for four classic cars – including an Aston Martin DB5 and a Ferrari 288 GTO – with a cumulative value of £4m. At an agreed lend value of £2.5m, this was Liberty’s largest-ever deal.

The nature of a refinance tends to involve a higher level of work and expertise. For example, the assets were viewed and valued by a specialist third party under the instruction of our asset team. With the director of the company being a foreign national with a limited profile in the UK, this involved extra due diligence.

The main reason for the client to refinance the vehicles was to release funds from the asset to allow for a cash injection into the business while maintaining manageable payments. With this in mind, the deal was structured to include balloons along with longer terms.

I went to meet the director of the business in Mayfair, and was responsible for the deal throughout the whole process.

I also remain the main point of contact for the introducer.

Sales and operations director Paul Sheedy also attended the meeting. He said: “While it feels

like a natural progression, it’s great to see Liberty dealing with large-ticket deals, particularly this year, providing finance for two of their largest deals ever.

“As we’ve grown, we’ve continued to push the boundaries of what we can offer and are in a position where we are confident to handle larger transactions. We’ve made considerable investments in our infrastructure and systems with an in-house asset and legal department, as well as employing Richard Bristow as head of credit last year.

“Isaac has done a fantastic job, having been with the company for two years, coming through our training programme and being mentored by area manager Lewis Banford. Liberty is passionate about nurturing new talent and believes it is vital for the future of the asset finance industry.”

This deal set something of a trend at Liberty, with our second-largest deal paying out in August, also handled by Isaac. Our south-east account management team was introduced to a refinance proposal

for two classic Jaguar Le Mans cars worth £2.5m, with a lend of £1.56m.

This deal presented some challenges that required negotiations between Liberty and the invoice discounting company in order to complete the transaction. The client benefited from the refinancing in a number of ways as we were able to settle outstanding finance, while applying residual balloon payments to facilitate lower repayments, as well as creating equity for the client.

A short-term let product which isn’t short on common sense Our new holiday let product is ideal for landlords who want to purchase or remortgage a property for short-term letting. It’s available on a first or second charge basis.

We’ll consider many income sources, credit profiles and property types. If we can help, we will.

It’s what we call common sense lending.

While recognising its strength within the car markets, Liberty understands the importance of not placing all its eggs in one basket. It continues to work hard to diversify the asset types it deals with. Angelo Stephens was a welcome addition to the asset team in 2016, with specialist experience in plant and agricultural machinery.

Personal service has been and always will remain key at Liberty, as it allows them to spend more time with the client and understand the transaction, ensuring a deal can be crafted and structured in a way that is viable and ultimately benefits the client.

For more information call 0161 933 7065

togethermoney.com/intermediaries For professional intermediary use only

16 | NACFB Magazine

CASE STUDIES

CASE STUDIES

ONE BAN LOFTS K LOFTS LOFTS ONE ONE BANK BANK

O NE B A NK L O FTS

The office space pre-conversion

18 | NACFB Magazine

58 H I GH STRE E T | TE NTE RD E N | KE NT | TN30 6 AX

The finished homes

Funding the transformation of redundant office space In the spring of 2016, United Trust Bank’s (UTB) bridging team was approached to assist with the purchase of office space above a bank in a period building in Kent, and to fund the works for its subsequent conversion into two apartments.

| T E N T E RDE | K E| NTN30 | T N6AX | KENT | KENT |T TN30 5 8HIGH HIG HSTREET S T RE| ETENTERDEN T| TENTERDEN N 36AX 0 6AX 5858 HIGH STREET

O

ver a year later and the development by Regents Bay is complete with developer and director Bhav Patel having created two character apartments in a grand bank building. Regents Bay has a strong track record in property refurbishments and the team was able to show UTB that it was equal to the task by virtue of having successfully completed three similar projects.

Between exchange of contracts and completion, Bhav obtained planning permission for the change of use from A2 to C3, which paved the way for the office space to be turned into two 1,250 sq ft apartments.

The purchase price of the office space was £270,000 with the conversion works estimated to cost a further £125,000. UTB’s valuer assessed the GDV of the completed apartments to be in the region of £550,000 and the initial market value to be £250,000. UTB agreed to provide an initial advance of £162,500 representing 65% of the initial market value of £250,000 with interest rolled up and added to the loan.

UTB also agreed to fund 100% of the works costs in arrears, which the borrower requested to be paid out in four tranches. The original facility – including the initial advance, loan fees, rolled up

interest and works costs – totalled £315,000, representing 57% of GDV. The apartments were successfully completed on time and within budget. Between the inception of the project and the completion of the apartments, uncertainty created by the EU referendum and further political turmoil took their toll on the local property market with Regents Bay seeing a drop-off in buyer activity. With the term of the residential property improvement loan coming to an end, Regents Bay discussed their options with UTB and decided to commute the facility to an investment loan. This enabled them to release some equity from the development and gave them more time to market the homes to achieve their optimum prices. The new facility was offered at a lower interest rate to reflect the decreased risk now that the apartments were finished and being marketed. In addition, Regents Bay is progressing another funding proposal with UTB to convert a 19th-century church to provide high-end, bespoke homes.

Bhav said: “It has been a pleasure to deal with United Trust Bank on this project. Not only was it so much quicker than dealing with a high street bank, both in getting an initial decision and releasing the first tranche of money, but the team at UTB also bring a human side to the relationship which is lacking from many lenders currently. In my experience, enquiries to a large bank for facilities of under £2m are often handed off to a centralised platform, where a customer service person will take you through some set, vague questions. They don’t fully take the time to understand the project itself and therefore the need.

“When working with the team at UTB, it’s very much a partnership.

They work hard to find a solution that’s suitable and beneficial to both the customer and the bank. That was apparent when the property market cooled down causing us to make a change of plan with the apartments.

They understood our situation, were happy with our suggestions and put together a flexible and

competitive solution we were all happy with. When we identified our next project – the church in East Sussex – UTB was my first choice to approach for the funding.”

Gavin Diamond, commercial director of bridging at UTB, added: “The Regents Bay team has done a great job on this conversion, creating two high-quality and distinctive homes.

When Bhav came to us to suggest restructuring the funding rather than rushing to sell the apartments within the original loan term, we were happy to put together a solution which met his and our requirements and we’re looking forward to supporting Regents Bay on their next exciting project.”

Gavin Diamond Commercial director bridging United Trust Bank

NACFB Magazine | 19

CASE STUDIES

CASE STUDIES

ONE BAN LOFTS K LOFTS LOFTS ONE ONE BANK BANK

O NE B A NK L O FTS

The office space pre-conversion

18 | NACFB Magazine

58 H I GH STRE E T | TE NTE RD E N | KE NT | TN30 6 AX

The finished homes

Funding the transformation of redundant office space In the spring of 2016, United Trust Bank’s (UTB) bridging team was approached to assist with the purchase of office space above a bank in a period building in Kent, and to fund the works for its subsequent conversion into two apartments.

| T E N T E RDE | K E| NTN30 | T N6AX | KENT | KENT |T TN30 5 8HIGH HIG HSTREET S T RE| ETENTERDEN T| TENTERDEN N 36AX 0 6AX 5858 HIGH STREET

O

ver a year later and the development by Regents Bay is complete with developer and director Bhav Patel having created two character apartments in a grand bank building. Regents Bay has a strong track record in property refurbishments and the team was able to show UTB that it was equal to the task by virtue of having successfully completed three similar projects.

Between exchange of contracts and completion, Bhav obtained planning permission for the change of use from A2 to C3, which paved the way for the office space to be turned into two 1,250 sq ft apartments.

The purchase price of the office space was £270,000 with the conversion works estimated to cost a further £125,000. UTB’s valuer assessed the GDV of the completed apartments to be in the region of £550,000 and the initial market value to be £250,000. UTB agreed to provide an initial advance of £162,500 representing 65% of the initial market value of £250,000 with interest rolled up and added to the loan.

UTB also agreed to fund 100% of the works costs in arrears, which the borrower requested to be paid out in four tranches. The original facility – including the initial advance, loan fees, rolled up

interest and works costs – totalled £315,000, representing 57% of GDV. The apartments were successfully completed on time and within budget. Between the inception of the project and the completion of the apartments, uncertainty created by the EU referendum and further political turmoil took their toll on the local property market with Regents Bay seeing a drop-off in buyer activity. With the term of the residential property improvement loan coming to an end, Regents Bay discussed their options with UTB and decided to commute the facility to an investment loan. This enabled them to release some equity from the development and gave them more time to market the homes to achieve their optimum prices. The new facility was offered at a lower interest rate to reflect the decreased risk now that the apartments were finished and being marketed. In addition, Regents Bay is progressing another funding proposal with UTB to convert a 19th-century church to provide high-end, bespoke homes.

Bhav said: “It has been a pleasure to deal with United Trust Bank on this project. Not only was it so much quicker than dealing with a high street bank, both in getting an initial decision and releasing the first tranche of money, but the team at UTB also bring a human side to the relationship which is lacking from many lenders currently. In my experience, enquiries to a large bank for facilities of under £2m are often handed off to a centralised platform, where a customer service person will take you through some set, vague questions. They don’t fully take the time to understand the project itself and therefore the need.

“When working with the team at UTB, it’s very much a partnership.

They work hard to find a solution that’s suitable and beneficial to both the customer and the bank. That was apparent when the property market cooled down causing us to make a change of plan with the apartments.

They understood our situation, were happy with our suggestions and put together a flexible and

competitive solution we were all happy with. When we identified our next project – the church in East Sussex – UTB was my first choice to approach for the funding.”

Gavin Diamond, commercial director of bridging at UTB, added: “The Regents Bay team has done a great job on this conversion, creating two high-quality and distinctive homes.

When Bhav came to us to suggest restructuring the funding rather than rushing to sell the apartments within the original loan term, we were happy to put together a solution which met his and our requirements and we’re looking forward to supporting Regents Bay on their next exciting project.”

Gavin Diamond Commercial director bridging United Trust Bank

NACFB Magazine | 19

CASE STUDIES

Change-as-you-go loan enables swift completion Thomas Walker Junior underwriter Affirmative Finance

A

ffirmative was recently approached by a customer who was looking to move forward on the purchase of a plot of land as quickly as possible. The land itself had planning permission granted and in place to develop a single residential dwelling.

The customer was looking to complete the build to a high standard and then sell the property with minimum turnaround time to then move on to the next project.

The customer had arranged an agreement with the vendor that meant all parties involved could proceed with the transaction within a short space of time. Affirmative’s customer agreed a purchase price of the land in which they would be paying just over half the amount upfront, with the seller agreeing to defer a portion of the purchase price. Arranging finance around this agreement meant that the loan would require a bespoke structure and, as such, Affirmative’s director spoke with the borrower to explain the potential method of making this work for everyone involved.

After discussions with Affirmative’s team, both the borrower and lender decided that the most effective way

to proceed on this sale arrangement would be for Affirmative to put a deed of priority in place, which allowed them to take a first charge on the property and maximise their LTV. This ensured that the customer was able to release the maximum amount of funds towards the purchase on day one.

The borrower was a builder by trade and due to his experience in the field, he had secured funds prior to this request to ensure that he was able to complete the remainder of the purchase and then increase the value of the project, prior to drawing down development funds from Affirmative.

The customer used a residential remortgage on a separate property to achieve this.

Following the commencement of the build, the customer was looking to make amendments to the planning permission to maximise the space of the site and increase the potential gross development value of the project. The customer worked closely with Affirmative’s on-the-road team and arranged site visits to detail and explain the changes that he was looking into making.

Affirmative agreed with the potential of the amended planning and accommodated the delay in building while the amendments were approved by the council. The plans came through after a slight delay and the build got back on track straight away.

A FS GROU P

The delay in changing the planning meant, however, that the build was behind schedule and was at risk of running into the winter months and slowing progress even further.

Affirmative again met with the borrower to discuss the timescale and the likely expected times that drawdown of funds would be required. By doing this, re-inspections were arranged ahead of time and Affirmative’s legal team were notified of an imminent release. By following this process at each stage, Affirmative was able to ensure that there was no delay in the borrower requesting and then receiving funds.

By working closely with Affirmative’s team and using his prior experience, the borrower was able to progress the build back on track – even ahead of schedule – and eventually finished the project with time to spare on the initial estimated timeline. The property had interest from potential buyers prior to completion and was sold shortly before the final fittings were in place.

The client’s change of plans proved to be beneficial as the project achieved the increased sale price and netted the customer a significant profit. The profit earned from this project has helped the customer push forward with similar endeavours, while maximising his own cash input and minimising borrowing to continue to enhance the profit margins.

brokerinabox.finance WE’VE GOT YOU COVERED

STRONGER TOGETHER

visit brokerinabox.finance for more information Asset Finance Solutions (UK) Ltd and Synergy Commercial Finance Limited are an Appointed Representative of AFS Compliance Ltd, which is Authorised and Regulated by the Financial Conduct Authority under number 6 2 5 0 3 5 .

20 | NACFB Magazine

CASE STUDIES

Change-as-you-go loan enables swift completion Thomas Walker Junior underwriter Affirmative Finance

A

ffirmative was recently approached by a customer who was looking to move forward on the purchase of a plot of land as quickly as possible. The land itself had planning permission granted and in place to develop a single residential dwelling.

The customer was looking to complete the build to a high standard and then sell the property with minimum turnaround time to then move on to the next project.

The customer had arranged an agreement with the vendor that meant all parties involved could proceed with the transaction within a short space of time. Affirmative’s customer agreed a purchase price of the land in which they would be paying just over half the amount upfront, with the seller agreeing to defer a portion of the purchase price. Arranging finance around this agreement meant that the loan would require a bespoke structure and, as such, Affirmative’s director spoke with the borrower to explain the potential method of making this work for everyone involved.

After discussions with Affirmative’s team, both the borrower and lender decided that the most effective way

to proceed on this sale arrangement would be for Affirmative to put a deed of priority in place, which allowed them to take a first charge on the property and maximise their LTV. This ensured that the customer was able to release the maximum amount of funds towards the purchase on day one.

The borrower was a builder by trade and due to his experience in the field, he had secured funds prior to this request to ensure that he was able to complete the remainder of the purchase and then increase the value of the project, prior to drawing down development funds from Affirmative.

The customer used a residential remortgage on a separate property to achieve this.

Following the commencement of the build, the customer was looking to make amendments to the planning permission to maximise the space of the site and increase the potential gross development value of the project. The customer worked closely with Affirmative’s on-the-road team and arranged site visits to detail and explain the changes that he was looking into making.

Affirmative agreed with the potential of the amended planning and accommodated the delay in building while the amendments were approved by the council. The plans came through after a slight delay and the build got back on track straight away.

A FS GROU P

The delay in changing the planning meant, however, that the build was behind schedule and was at risk of running into the winter months and slowing progress even further.

Affirmative again met with the borrower to discuss the timescale and the likely expected times that drawdown of funds would be required. By doing this, re-inspections were arranged ahead of time and Affirmative’s legal team were notified of an imminent release. By following this process at each stage, Affirmative was able to ensure that there was no delay in the borrower requesting and then receiving funds.

By working closely with Affirmative’s team and using his prior experience, the borrower was able to progress the build back on track – even ahead of schedule – and eventually finished the project with time to spare on the initial estimated timeline. The property had interest from potential buyers prior to completion and was sold shortly before the final fittings were in place.

The client’s change of plans proved to be beneficial as the project achieved the increased sale price and netted the customer a significant profit. The profit earned from this project has helped the customer push forward with similar endeavours, while maximising his own cash input and minimising borrowing to continue to enhance the profit margins.

brokerinabox.finance WE’VE GOT YOU COVERED

STRONGER TOGETHER

visit brokerinabox.finance for more information Asset Finance Solutions (UK) Ltd and Synergy Commercial Finance Limited are an Appointed Representative of AFS Compliance Ltd, which is Authorised and Regulated by the Financial Conduct Authority under number 6 2 5 0 3 5 .

20 | NACFB Magazine

CASE STUDIES

Healthcare expertise supports growing nursery providing access to senior colleagues and offering them the opportunity to shape our products and services.

David Parker Head of healthcare Metro Bank

I

t’s like the healthcare industry is wearing a Fitbit. If you don’t stay on top of it, it’s likely to have lapped you. Twice. Given Brexit and the ongoing debate over the future shape of the NHS, it’s also an industry that’s getting its fair share of the limelight, which makes for an interesting period for anyone lucky enough to be working within the sector.

Beyond those events taking place in both Brussels and Whitehall, there are numerous changes being implemented that are affecting the industry, whether you’re looking at the dental, pharmaceutical or the children’s day-care market.

This latter is buoyant. According to IBISWorld, the industry is said to be worth in the region of £4bn to the UK economy. Within the market itself,

there continues to be a lot of activity, with consolidation at the top of many groups’ agendas, and with single sites being bought by mid-sized groups, which in turn are being purchased by national-level operators.

Whatever the market conditions, the role of the broker is absolutely vital. Having spent over 10 years in the industry, it’s great to be part of a bank that really puts customers at the heart of everything it does. We are a growing team, heavily focused on building long-term relationships with both our customers and wider stakeholders. Brokers are a case in point. We know they can really make the difference for a customer, and can ensure that they’re able to find the right solution quickly and efficiently. As a business we nurture our relationships with healthcare brokers, regularly holding events,

A recent example of this was our work with East Sheen-based Top of the Class Nursery, where we were able to support the growing company with a multi-million-pound funding solution through working with Jas Bhogal from Chancery Wall Financial Services. Jas took the time to find out what the nursery was looking for, not just in terms of now, but also thinking about its future and expected growth.

By way of a thorough understanding of both the customer and the wider industry, we were able to work with Jas to provide heads of terms in a timely manner, which included refinancing existing facilities and providing an equity release to support existing refurbishment works. Our one-bank ethos, which involves taking a case-by-case approach to underwriting, ensured that our healthcare team was able to engage directly with colleagues from across the bank, from credit underwriters to the local store team, meaning a significantly quicker turnaround for Jas and Top of the Class Nursery. A successful conclusion all round.

At Metro Bank, we have a bankwide policy of ‘no stupid bank rules’. This means a simple and easy process, as we make sure all our communication and requirements are clear and concise – after all, we know how busy both customers and brokers are. Our outlook and way of doing business has meant that every day we’re growing our broker and healthcare customer base, and we very much look forward to developing even stronger relationships and supporting yet more customers in realising their ambitions.

Innovative loan solutions you can design to suit your clients Just Cashflow is giving professional brokers and intermediaries the ability to work with their clients to design the loan product that best suits their business needs and growth plans.

Just Cashflow has successfully been supporting SMEs with its Revolving Credit Facility (RCF) that acts exactly like a traditional bank overdraft. This is a great solution for shorter term funding needs. Now it has introduced a new loan product with flexible features that allows you to design funding to suit your clients needs.

Business Builder provides a 2 to 3 year loan facility for businesses that need funds over a longer period and gives them certainty on their monthly or weekly repayments. Other features that can be worked into the design include payment holidays, early repayment without penalties and loan extensions.

“We appreciate that businesses have different finance needs that reflect their growth plans, seasonality of income

and a range of other factors,” says John Davies, Director, Just Cashflow.

“This has driven the creation of our product along with recognition that professional brokers and intermediaries are ideally placed to work with their business customers to design the most suitable loan facility.

“We have taken on board feedback from existing customers and the brokers we regularly deal with. A strong theme has been that our Revolving Credit Facility works really well when businesses have to prepare for inevitable bumps in the road that will impact their all important cash flow. However, this isn’t always the ideal solution when capital expenditure needs to be made,” John explains.

“It might be a new vehicle, printing press or lease on another shop where the business wants to have certainty about the term of the loan and what the monthly repayments are going to be.

“Seasonality of income was another strong theme and a lot of businesses

know how this is going to impact them and would welcome the flexibility and relief that payment holidays can provide.

“Businesses rely on the expertise of professional brokers and intermediaries and our flexible financial solutions will allow them to work with their clients to provide a tailored product. We are committed to providing fast and flexible funding so our application process is straightforward.

“The most successful businesses are ones that can quickly adapt to new challenges and opportunities and our thinking is that our finance facilities should reflect and encourage this. For example if things change and a business has the ability to repay their loan early why should they be penalised for it ?”

For more information on how Just Cashflow’s solutions are ideally placed to help build businesses, call our Broker Support Team on 0121 418 5037 or visit justcashflow.com/partner

The final piece in the puzzle

- a loan you can design yourself.

As a professional broker or intermediary you’ll be used to seeking fast and flexible funding for your clients.

Just Cashflow knows that every business is different and our new loan products enable us to offer you tailored financial solutions to meet the requirements of your clients.

Now you can design a loan with your Client that can give them access to funds from £10,000 to £500,000 in a way that exactly fits with their business needs.

Blend a short term and long term loan, pay it off without penalties, add in a payment holiday - a Just Cashflow loan can do it all.

The application process is really simple and straightforward and our underwriting team will support you and help you complete the picture for your clients.

Just call us now

0121 418 5037

Alternatively, find out more

justcashflow.com/partner

Whatever the market conditions, the role of the broker is absolutely vital FS668057

BCMS668054

Just Cash Flow PLC is registered at 1 Charterhouse Mews, Farringdon, London EC1M 6BB under Company number 08508165 © Just Cash Flow PLC 20 17

22 | NACFB Magazine

CASE STUDIES

Healthcare expertise supports growing nursery providing access to senior colleagues and offering them the opportunity to shape our products and services.

David Parker Head of healthcare Metro Bank

I

t’s like the healthcare industry is wearing a Fitbit. If you don’t stay on top of it, it’s likely to have lapped you. Twice. Given Brexit and the ongoing debate over the future shape of the NHS, it’s also an industry that’s getting its fair share of the limelight, which makes for an interesting period for anyone lucky enough to be working within the sector.

Beyond those events taking place in both Brussels and Whitehall, there are numerous changes being implemented that are affecting the industry, whether you’re looking at the dental, pharmaceutical or the children’s day-care market.

This latter is buoyant. According to IBISWorld, the industry is said to be worth in the region of £4bn to the UK economy. Within the market itself,

there continues to be a lot of activity, with consolidation at the top of many groups’ agendas, and with single sites being bought by mid-sized groups, which in turn are being purchased by national-level operators.

Whatever the market conditions, the role of the broker is absolutely vital. Having spent over 10 years in the industry, it’s great to be part of a bank that really puts customers at the heart of everything it does. We are a growing team, heavily focused on building long-term relationships with both our customers and wider stakeholders. Brokers are a case in point. We know they can really make the difference for a customer, and can ensure that they’re able to find the right solution quickly and efficiently. As a business we nurture our relationships with healthcare brokers, regularly holding events,

A recent example of this was our work with East Sheen-based Top of the Class Nursery, where we were able to support the growing company with a multi-million-pound funding solution through working with Jas Bhogal from Chancery Wall Financial Services. Jas took the time to find out what the nursery was looking for, not just in terms of now, but also thinking about its future and expected growth.

By way of a thorough understanding of both the customer and the wider industry, we were able to work with Jas to provide heads of terms in a timely manner, which included refinancing existing facilities and providing an equity release to support existing refurbishment works. Our one-bank ethos, which involves taking a case-by-case approach to underwriting, ensured that our healthcare team was able to engage directly with colleagues from across the bank, from credit underwriters to the local store team, meaning a significantly quicker turnaround for Jas and Top of the Class Nursery. A successful conclusion all round.

At Metro Bank, we have a bankwide policy of ‘no stupid bank rules’. This means a simple and easy process, as we make sure all our communication and requirements are clear and concise – after all, we know how busy both customers and brokers are. Our outlook and way of doing business has meant that every day we’re growing our broker and healthcare customer base, and we very much look forward to developing even stronger relationships and supporting yet more customers in realising their ambitions.

Innovative loan solutions you can design to suit your clients Just Cashflow is giving professional brokers and intermediaries the ability to work with their clients to design the loan product that best suits their business needs and growth plans.

Just Cashflow has successfully been supporting SMEs with its Revolving Credit Facility (RCF) that acts exactly like a traditional bank overdraft. This is a great solution for shorter term funding needs. Now it has introduced a new loan product with flexible features that allows you to design funding to suit your clients needs.

Business Builder provides a 2 to 3 year loan facility for businesses that need funds over a longer period and gives them certainty on their monthly or weekly repayments. Other features that can be worked into the design include payment holidays, early repayment without penalties and loan extensions.

“We appreciate that businesses have different finance needs that reflect their growth plans, seasonality of income

and a range of other factors,” says John Davies, Director, Just Cashflow.

“This has driven the creation of our product along with recognition that professional brokers and intermediaries are ideally placed to work with their business customers to design the most suitable loan facility.

“We have taken on board feedback from existing customers and the brokers we regularly deal with. A strong theme has been that our Revolving Credit Facility works really well when businesses have to prepare for inevitable bumps in the road that will impact their all important cash flow. However, this isn’t always the ideal solution when capital expenditure needs to be made,” John explains.

“It might be a new vehicle, printing press or lease on another shop where the business wants to have certainty about the term of the loan and what the monthly repayments are going to be.

“Seasonality of income was another strong theme and a lot of businesses

know how this is going to impact them and would welcome the flexibility and relief that payment holidays can provide.

“Businesses rely on the expertise of professional brokers and intermediaries and our flexible financial solutions will allow them to work with their clients to provide a tailored product. We are committed to providing fast and flexible funding so our application process is straightforward.

“The most successful businesses are ones that can quickly adapt to new challenges and opportunities and our thinking is that our finance facilities should reflect and encourage this. For example if things change and a business has the ability to repay their loan early why should they be penalised for it ?”

For more information on how Just Cashflow’s solutions are ideally placed to help build businesses, call our Broker Support Team on 0121 418 5037 or visit justcashflow.com/partner

The final piece in the puzzle

- a loan you can design yourself.

As a professional broker or intermediary you’ll be used to seeking fast and flexible funding for your clients.

Just Cashflow knows that every business is different and our new loan products enable us to offer you tailored financial solutions to meet the requirements of your clients.

Now you can design a loan with your Client that can give them access to funds from £10,000 to £500,000 in a way that exactly fits with their business needs.

Blend a short term and long term loan, pay it off without penalties, add in a payment holiday - a Just Cashflow loan can do it all.

The application process is really simple and straightforward and our underwriting team will support you and help you complete the picture for your clients.

Just call us now

0121 418 5037

Alternatively, find out more

justcashflow.com/partner

Whatever the market conditions, the role of the broker is absolutely vital FS668057

BCMS668054

Just Cash Flow PLC is registered at 1 Charterhouse Mews, Farringdon, London EC1M 6BB under Company number 08508165 © Just Cash Flow PLC 20 17

22 | NACFB Magazine

Cover Story | feature xxxx

Our gala dinner: the silver lining of 2017 Over 700 people attended the NACFB’s largest ever gala dinner on Thursday 30th November, celebrating the Association’s silver anniversary in both grandeur and style.

F

ollowing on from an engaging and positive AGM on the same day, the annual dinner provided the ideal occasion to allow the Association’s diverse range of Patrons, Members and guests to network, dine and mark 25 years of the NACFB. This year’s dinner ran with a Prohibitionera theme - with guests reassured that alcohol was indeed being served. This homage to the roaring ‘20s was more than alluded to though as the night unfolded with nods to a simpler time of fine clothing, elegant cocktails, rooms teeming with live music, and even a spot of roulette.

After reception drinks, sponsored by InterBay, the sell-out event, hosted

24 | NACFB Magazine

for the sixth time at the Park Plaza Westminster, was led by skilled host Aaron James. His experience, coupled with his wry wit and hearty one-liners, set the tone for a fun-filled evening.

NACFB chairman Paul Goodman welcomed attendees and thanked all Members for their continued support and backing as the Association transitions into 2018. A special thank you was presented to the gala dinner’s headline sponsor, Shawbrook Bank.

Karen Bennett, managing director of commercial mortgages at Shawbrook Bank, spoke of being “immensely proud of the commitment shown by the intermediary community to understand

the impact of a changing regulatory landscape and its effect on the customer”.

She added: “The NACFB has been a leading light of this drive for education and Shawbrook has been proud to support throughout this pivotal time.”

The evening also featured an innovative silent auction, with proceeds going to the NACFB’s chosen charity, YoungMinds.

Sarah Brennan, OBE of YoungMinds, addressed the audience outlining that proceeds from the bids would be going to improving the wellbeing and mental health of children and young people in the UK. By the end of the night, guests had raised a staggering £20,000 – an astonishing achievement. Chairman Paul

Goodman commented: “The NACFB is proud to both support such a worthy cause and of the remarkable generosity of all those who donated on the night.”

This year’s silent auction was sponsored

by NACFB Patron Growth Street. Chris Weller, commercial director, said the lender was “delighted to sponsor the NACFB gala dinner’s silent auction: a great way to mark 25 years of the NACFB.” Veteran politician and broadcaster Gyles Brandreth then took to the stage to host the evening’s award ceremony.

The NACFB awards recognise standout lenders nominated by NACFB broker Members. The NACFB saw dozens of names put forward in some categories

– clearly demonstrating that there are many lenders deserving of plaudits.

As with previous years, a wide range of entertainment served as a backdrop to the occasion, and live New Orleans jazz provided by Hot House Jazz ensured an authentic prohibition sound scape continued well into the night.

Norman Chambers MD NACFB

NACFB Magazine | 25

Cover Story | feature xxxx

Our gala dinner: the silver lining of 2017 Over 700 people attended the NACFB’s largest ever gala dinner on Thursday 30th November, celebrating the Association’s silver anniversary in both grandeur and style.

F

ollowing on from an engaging and positive AGM on the same day, the annual dinner provided the ideal occasion to allow the Association’s diverse range of Patrons, Members and guests to network, dine and mark 25 years of the NACFB. This year’s dinner ran with a Prohibitionera theme - with guests reassured that alcohol was indeed being served. This homage to the roaring ‘20s was more than alluded to though as the night unfolded with nods to a simpler time of fine clothing, elegant cocktails, rooms teeming with live music, and even a spot of roulette.

After reception drinks, sponsored by InterBay, the sell-out event, hosted

24 | NACFB Magazine

for the sixth time at the Park Plaza Westminster, was led by skilled host Aaron James. His experience, coupled with his wry wit and hearty one-liners, set the tone for a fun-filled evening.

NACFB chairman Paul Goodman welcomed attendees and thanked all Members for their continued support and backing as the Association transitions into 2018. A special thank you was presented to the gala dinner’s headline sponsor, Shawbrook Bank.

Karen Bennett, managing director of commercial mortgages at Shawbrook Bank, spoke of being “immensely proud of the commitment shown by the intermediary community to understand

the impact of a changing regulatory landscape and its effect on the customer”.

She added: “The NACFB has been a leading light of this drive for education and Shawbrook has been proud to support throughout this pivotal time.”

The evening also featured an innovative silent auction, with proceeds going to the NACFB’s chosen charity, YoungMinds.

Sarah Brennan, OBE of YoungMinds, addressed the audience outlining that proceeds from the bids would be going to improving the wellbeing and mental health of children and young people in the UK. By the end of the night, guests had raised a staggering £20,000 – an astonishing achievement. Chairman Paul

Goodman commented: “The NACFB is proud to both support such a worthy cause and of the remarkable generosity of all those who donated on the night.”

This year’s silent auction was sponsored

by NACFB Patron Growth Street. Chris Weller, commercial director, said the lender was “delighted to sponsor the NACFB gala dinner’s silent auction: a great way to mark 25 years of the NACFB.” Veteran politician and broadcaster Gyles Brandreth then took to the stage to host the evening’s award ceremony.

The NACFB awards recognise standout lenders nominated by NACFB broker Members. The NACFB saw dozens of names put forward in some categories

– clearly demonstrating that there are many lenders deserving of plaudits.

As with previous years, a wide range of entertainment served as a backdrop to the occasion, and live New Orleans jazz provided by Hot House Jazz ensured an authentic prohibition sound scape continued well into the night.

Norman Chambers MD NACFB

NACFB Magazine | 25

2017 award winners Buy-to-let Lender of the Year – sponsored by Mortgages for Business Winner: Shawbrook Bank Nominees: Keystone Property Finance NatWest Bank Precise Mortgages Shawbrook Bank

Business Bank of the Year – Sponsored by Omega Winner: NatWest Bank Nominees: Barclays Bank Lloyds Bank NatWest Bank

Most Innovative Lender of the Year – Sponsored by Commercial Finance Brokers UK Winner: Atom Bank Nominees: Atom Bank Funding Circle Natwest Bank Shawbrook Bank

Specialist Lender of the Year – Sponsored by Goodman Corporate Finance Winner: Together Nominees: Keystone Property Finance NatWest Bank RateSetter Commercial Together

Leasing & Asset Provider of the Year – Sponsored by Asset Finance Solutions Winner: Hitachi Capital Nominees: Aldermore Hitachi Capital, Lloyds Bank Ultimate Finance

Commercial Mortgage Lender of the Year – Sponsored by Synergy Commercial Finance Winner: Lloyds Bank Nominees: Barclays Bank Lloyds Bank NatWest Bank Shawbrook Bank

Short-term Lender of the Year – Sponsored by Y3S Bridging & Commercial Winner: Shawbrook Bank Nominees: Amicus InterBay Shawbrook Bank Together

Newcomer/New Entrant of the Year – Sponsored by B2BFinance.com Winner: Atom Bank Nominees: Atom Bank Foundation Home Loans Octane Capital Redwood Bank

Best Development Lender of the Year – Sponsored by Commercial Mortgage Solutions Winner: Aldermore Nominees: Aldermore Amicus LendInvest Octopus Property

Factor & Invoice Discounter of the Year – Sponsored by Finance 4 Business Winner: Bibby Financial Services Nominees: Amicus Bibby Financial Services Metro Bank Ultimate Finance

Small Funder of the Year – Sponsored by Watts Commercial Winner: Roma Finance Nominees: Ashley Commercial Finance Asset Advantage Ltd Peninsula Finance Roma Finance

Hamilton House Award – Sponsored by NACFB Winner: LendInvest

26 | NACFB Magazine

Lifetime Achievement Award - Sponsored by Shawbrook Bank Winner: John Heron

NACFB Magazine | 27

2017 award winners Buy-to-let Lender of the Year – sponsored by Mortgages for Business Winner: Shawbrook Bank Nominees: Keystone Property Finance NatWest Bank Precise Mortgages Shawbrook Bank

Business Bank of the Year – Sponsored by Omega Winner: NatWest Bank Nominees: Barclays Bank Lloyds Bank NatWest Bank

Most Innovative Lender of the Year – Sponsored by Commercial Finance Brokers UK Winner: Atom Bank Nominees: Atom Bank Funding Circle Natwest Bank Shawbrook Bank

Specialist Lender of the Year – Sponsored by Goodman Corporate Finance Winner: Together Nominees: Keystone Property Finance NatWest Bank RateSetter Commercial Together

Leasing & Asset Provider of the Year – Sponsored by Asset Finance Solutions Winner: Hitachi Capital Nominees: Aldermore Hitachi Capital, Lloyds Bank Ultimate Finance

Commercial Mortgage Lender of the Year – Sponsored by Synergy Commercial Finance Winner: Lloyds Bank Nominees: Barclays Bank Lloyds Bank NatWest Bank Shawbrook Bank

Short-term Lender of the Year – Sponsored by Y3S Bridging & Commercial Winner: Shawbrook Bank Nominees: Amicus InterBay Shawbrook Bank Together

Newcomer/New Entrant of the Year – Sponsored by B2BFinance.com Winner: Atom Bank Nominees: Atom Bank Foundation Home Loans Octane Capital Redwood Bank

Best Development Lender of the Year – Sponsored by Commercial Mortgage Solutions Winner: Aldermore Nominees: Aldermore Amicus LendInvest Octopus Property

Factor & Invoice Discounter of the Year – Sponsored by Finance 4 Business Winner: Bibby Financial Services Nominees: Amicus Bibby Financial Services Metro Bank Ultimate Finance

Small Funder of the Year – Sponsored by Watts Commercial Winner: Roma Finance Nominees: Ashley Commercial Finance Asset Advantage Ltd Peninsula Finance Roma Finance

Hamilton House Award – Sponsored by NACFB Winner: LendInvest

26 | NACFB Magazine

Lifetime Achievement Award - Sponsored by Shawbrook Bank Winner: John Heron

NACFB Magazine | 27

COVER STORY

The event remained consistent with the Prohibition-era theme as guests could continue the celebrations later into the night at the secret speakeasy. The after dinner drinks were also kindly sponsored by Shawbrook Bank.

Next year’s gala dinner is already confirmed and we hope to build upon the success of 2017. Save the date – 29th November 2018 – it’s sure to be another sell-out, so book early to avoid disappointment.

We’re redefining standard

We’ve put a lot of thought into our newly extended suite of short-term lending products.

In an increasingly diverse world we know brokers need maximum flexibility to handle the widest possible range of client scenarios.

Standard bridging that’s anything but standard • • • • •

Prime Bridging Standard Bridging Light Development Development Commercial

Are you ready to rethink what standard means?

masthaven.co.uk Masthaven Bank Limited is a company registered in England & Wales with registration number 09660012 and whose registered office is at: 11 Soho Street, London W1D 3AD. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Firm reference number 719354).

28 | NACFB Magazine

The “Masthaven” name and logos and all other brands, names, logos, marks and slogans on this document are the trademarks or service marks of us or our licensors.

COVER STORY

The event remained consistent with the Prohibition-era theme as guests could continue the celebrations later into the night at the secret speakeasy. The after dinner drinks were also kindly sponsored by Shawbrook Bank.

Next year’s gala dinner is already confirmed and we hope to build upon the success of 2017. Save the date – 29th November 2018 – it’s sure to be another sell-out, so book early to avoid disappointment.

We’re redefining standard

We’ve put a lot of thought into our newly extended suite of short-term lending products.

In an increasingly diverse world we know brokers need maximum flexibility to handle the widest possible range of client scenarios.

Standard bridging that’s anything but standard • • • • •

Prime Bridging Standard Bridging Light Development Development Commercial

Are you ready to rethink what standard means?

masthaven.co.uk Masthaven Bank Limited is a company registered in England & Wales with registration number 09660012 and whose registered office is at: 11 Soho Street, London W1D 3AD. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Firm reference number 719354).

28 | NACFB Magazine

The “Masthaven” name and logos and all other brands, names, logos, marks and slogans on this document are the trademarks or service marks of us or our licensors.

Patron | profile

West One: as accessible as possible Since 2007, West One Loans has been providing bridging finance to property professionals, investors and consumers, and is now one of the largest bridging lenders in the UK.

30 | NACFB Magazine

W

e provide in excess of £50m a month and currently hold a bridging book of almost £450m of lending.

We have issued well over £2.5bn over the course of our history.

The UK’s bridging sector is continuing its solid growth trajectory this year, with gross annual lending growing for the third consecutive quarter, reaching £4.3bn in June. Our bridging offering within this is second to none.

We have done deals on all kinds of property, including residential, semicommercial and commercial, and land with or without planning permission.

We also offer regulated bridging products on both a first and second charge basis, and consider second charge regulated bridging up to 70%

LTV. We will also lend to a wide range of borrowers, including corporate entities, expats and foreign nationals.

With the financial strength of Enra Group behind us and diversified funding, we are able to lend on larger and more complex projects, including those well in excess of £10m, and can offer rates starting at 0.55% per month.

All of this means to say that West One can offer NACFB Members a strong source of alternative, short-term funding for clients with property projects.

Our highly experienced team of specialist underwriters enables us to deliver a high-quality service proposition. We’re also quicker than most, which is key for bridging, where time is often of the essence. We have

completed multi-million-pound deals in under three days from application, and our average completion times of around 30 days are comfortably less than most players in the market.

Our offering now goes beyond that, as we expand our range of specialist lending. Earlier this year, we launched second charge mortgage term lending and we anticipate building a development finance proposition early next year.

To support this and to make sure we are as accessible to NACFB Members as possible, we have significantly expanded our sales organisation. We recently appointed two additional business development managers to cover northern Britain (John Steel) and the south coast of England

and south Wales (Matt Watson), to complement Michael Grant and Jim Nash covering London, the South East and the Midlands.

ensure nationwide coverage of our key broker partners, but also the back office bench strength to give the service expected of us.

This business development team is on hand to explain our bridging and second charge offerings to you, work through any potential business opportunities you might have, and progress active cases through to completion for you and your clients.

Being a Patron of the NACFB underlines our commitment to supporting bridging intermediaries across the UK. So, if you are interested in knowing more about our portfolio or want to discuss specific business opportunities, please do give me or my team a call and we’d be happy to arrange a meeting.

We also have a bigger team – led by broker sales manager Danny Scoltock – to ensure your day-to-day enquiries and case progression are dealt with swiftly and efficiently.

The strengthening of our sales organisation is a critical component for our growth strategy and will

Marie Grundy Sales director West One

NACFB Magazine | 31

Patron | profile

West One: as accessible as possible Since 2007, West One Loans has been providing bridging finance to property professionals, investors and consumers, and is now one of the largest bridging lenders in the UK.

30 | NACFB Magazine

W

e provide in excess of £50m a month and currently hold a bridging book of almost £450m of lending.

We have issued well over £2.5bn over the course of our history.

The UK’s bridging sector is continuing its solid growth trajectory this year, with gross annual lending growing for the third consecutive quarter, reaching £4.3bn in June. Our bridging offering within this is second to none.

We have done deals on all kinds of property, including residential, semicommercial and commercial, and land with or without planning permission.

We also offer regulated bridging products on both a first and second charge basis, and consider second charge regulated bridging up to 70%

LTV. We will also lend to a wide range of borrowers, including corporate entities, expats and foreign nationals.

With the financial strength of Enra Group behind us and diversified funding, we are able to lend on larger and more complex projects, including those well in excess of £10m, and can offer rates starting at 0.55% per month.

All of this means to say that West One can offer NACFB Members a strong source of alternative, short-term funding for clients with property projects.

Our highly experienced team of specialist underwriters enables us to deliver a high-quality service proposition. We’re also quicker than most, which is key for bridging, where time is often of the essence. We have

completed multi-million-pound deals in under three days from application, and our average completion times of around 30 days are comfortably less than most players in the market.

Our offering now goes beyond that, as we expand our range of specialist lending. Earlier this year, we launched second charge mortgage term lending and we anticipate building a development finance proposition early next year.

To support this and to make sure we are as accessible to NACFB Members as possible, we have significantly expanded our sales organisation. We recently appointed two additional business development managers to cover northern Britain (John Steel) and the south coast of England

and south Wales (Matt Watson), to complement Michael Grant and Jim Nash covering London, the South East and the Midlands.

ensure nationwide coverage of our key broker partners, but also the back office bench strength to give the service expected of us.

This business development team is on hand to explain our bridging and second charge offerings to you, work through any potential business opportunities you might have, and progress active cases through to completion for you and your clients.

Being a Patron of the NACFB underlines our commitment to supporting bridging intermediaries across the UK. So, if you are interested in knowing more about our portfolio or want to discuss specific business opportunities, please do give me or my team a call and we’d be happy to arrange a meeting.

We also have a bigger team – led by broker sales manager Danny Scoltock – to ensure your day-to-day enquiries and case progression are dealt with swiftly and efficiently.

The strengthening of our sales organisation is a critical component for our growth strategy and will

Marie Grundy Sales director West One

NACFB Magazine | 31

Ask | the expert Your questions answered by the most knowledgeable industry insiders

The world’s first intelligent regulatory handbook John Byrne, CEO at Corlytics, world leader in regulatory risk intelligence, discusses its collaboration with the FCA

Q A

What is Corlytics?

Corlytics is the world’s leading provider of regulatory risk intelligence and analytics. We work in partnership with regulators and eminent financial institutions globally. We enable a more transparent and stable financial system through greater regulatory compliance. By delivering worldclass risk data and analytics, we empower our partners to make transformational, informed, positive choices. We operate as a trusted strategic partner to banks and financial institutions globally.

We are at the very fore of regulatory intelligence revolution. Since we started out in 2013, forensic analysis and forecasting of fines has been pulled together by four different professions – leading data scientists, seasoned technologists, proven banking risk practitioners and expert lawyers – seeing Corlytics deliver 360-degree intelligence. We measure, predict and calculate regulatory outcomes and impact.

Q A

What is the FCA intelligent handbook?

The FCA handbook is used by thousands of regulated financial institutions and their advisers daily.

We have worked with the team at the FCA to apply a central, common taxonomy to all regulations. Having put this in place, the existing material in the handbook could then be tagged and machine read. This means brokers are now able to search for any information quickly and easily, allowing for a much more

32 | NACFB Magazine

user-friendly navigation experience.

The process enabled categorisation of all sections so that the handbook can function through its built-in search capability. Much like Google, users can search by module or topic, as well as using keywords.

Q A

How have we made it accessible to all?

We have put a metadata structure in place – similar to the system used by Google. This is really big, detailed data and analytics. For the intelligent handbook to work, we need really wellorganised, detailed data broken down into small, individual pieces of information to ensure that the search function pulls back the right information. So the teams have gone to different sections of the handbook and machine learnt them.

Then, with the help of our regulatory lawyers and data scientists, we have autotagged the handbook so that our intelligent software can read this data and understand how to present it back to the user.

Q A

Why have we tagged the entire FCA handbook?

Some 3,000 metadata tags have been added to the original core infrastructure to make all technology projects around the democratisation of the handbook possible – a huge undertaking.

Thanks to this, brokers can now put in a non-specific search term and the system will ‘understand’ what they want and takes them straight to the information.

Q A

Is the data accurate enough to be used by those in the finance sector?

Yes! Our technology has made adding an intelligent regulatory adviser as a front-end to the handbook possible. The addition of front-end artificial intelligence needs consistent and accurate data, and that’s what we have enabled. It’s just not possible to develop this from indexing technology, which is neither consistent nor accurate.

At Corlytics, we have moved into the same building as a lot of specialist medical data scientists to better understand what they do. Using ‘trained models’ we are able to teach the models how to understand and interpret the data.

The technology is the same as the one that data scientists working in cancer research (oncology) use to crunch their data: pulling individual studies from around the world into one huge, virtual database, making the studies – which are often working with different parameters – comparable.

To best do this you need subject experts who can programme and understand analytics, working alongside data scientists. In our case, we have swapped oncologists with regulatory lawyers who can code. Their training makes for consistent and accurate analytics.

If you need assistance in understanding your own regulatory requirements, myself and the team at Corlytics are here to help.

Ask | the expert Your questions answered by the most knowledgeable industry insiders

The world’s first intelligent regulatory handbook John Byrne, CEO at Corlytics, world leader in regulatory risk intelligence, discusses its collaboration with the FCA

Q A

What is Corlytics?

Corlytics is the world’s leading provider of regulatory risk intelligence and analytics. We work in partnership with regulators and eminent financial institutions globally. We enable a more transparent and stable financial system through greater regulatory compliance. By delivering worldclass risk data and analytics, we empower our partners to make transformational, informed, positive choices. We operate as a trusted strategic partner to banks and financial institutions globally.

We are at the very fore of regulatory intelligence revolution. Since we started out in 2013, forensic analysis and forecasting of fines has been pulled together by four different professions – leading data scientists, seasoned technologists, proven banking risk practitioners and expert lawyers – seeing Corlytics deliver 360-degree intelligence. We measure, predict and calculate regulatory outcomes and impact.

Q A

What is the FCA intelligent handbook?

The FCA handbook is used by thousands of regulated financial institutions and their advisers daily.

We have worked with the team at the FCA to apply a central, common taxonomy to all regulations. Having put this in place, the existing material in the handbook could then be tagged and machine read. This means brokers are now able to search for any information quickly and easily, allowing for a much more

32 | NACFB Magazine

user-friendly navigation experience.

The process enabled categorisation of all sections so that the handbook can function through its built-in search capability. Much like Google, users can search by module or topic, as well as using keywords.

Q A

How have we made it accessible to all?

We have put a metadata structure in place – similar to the system used by Google. This is really big, detailed data and analytics. For the intelligent handbook to work, we need really wellorganised, detailed data broken down into small, individual pieces of information to ensure that the search function pulls back the right information. So the teams have gone to different sections of the handbook and machine learnt them.

Then, with the help of our regulatory lawyers and data scientists, we have autotagged the handbook so that our intelligent software can read this data and understand how to present it back to the user.

Q A

Why have we tagged the entire FCA handbook?

Some 3,000 metadata tags have been added to the original core infrastructure to make all technology projects around the democratisation of the handbook possible – a huge undertaking.

Thanks to this, brokers can now put in a non-specific search term and the system will ‘understand’ what they want and takes them straight to the information.

Q A

Is the data accurate enough to be used by those in the finance sector?

Yes! Our technology has made adding an intelligent regulatory adviser as a front-end to the handbook possible. The addition of front-end artificial intelligence needs consistent and accurate data, and that’s what we have enabled. It’s just not possible to develop this from indexing technology, which is neither consistent nor accurate.

At Corlytics, we have moved into the same building as a lot of specialist medical data scientists to better understand what they do. Using ‘trained models’ we are able to teach the models how to understand and interpret the data.

The technology is the same as the one that data scientists working in cancer research (oncology) use to crunch their data: pulling individual studies from around the world into one huge, virtual database, making the studies – which are often working with different parameters – comparable.

To best do this you need subject experts who can programme and understand analytics, working alongside data scientists. In our case, we have swapped oncologists with regulatory lawyers who can code. Their training makes for consistent and accurate analytics.

If you need assistance in understanding your own regulatory requirements, myself and the team at Corlytics are here to help.

Special | features An up-to-date insight into the industry

Brokers,

how you can support ‘made in Britain’ Craig Durnell Managing director, export finance Bibby Financial Services

The scale of opportunity for SMEs to grow through exports is at risk. The uncertainty and speculation surrounding the UK’s future relationship with the EU, the finer details of a potential trade deal and the impact of leaving both the customs union and the single market are all weighing hard on business decision makers.

T

he number of SMEs exporting in the UK is relatively modest (currently just one in five SMEs), with many businesses put off by how complicated it can seem at first, and the international complexities that need to be considered.

Indeed, Bibby Financial Services’ (BFS) 2017 Global Business Monitor report recently found that currency fluctuations are seen as the greatest barrier to international trade among Britain’s SMEs. But the UK’s decision to leave the EU has thrust the issue of international trade firmly into the spotlight.

In order to break through the various barriers that stand between British companies and trading overseas, it is essential for SMEs to have a plan and take advantage of the support available – including speaking to a specialist finance broker. Most first time exporters can be confused by where to start, but there are a number of organisations supporting small businesses to help them understand the potential of trading with overseas markets.

At BFS, we advise our clients on a daily basis on international commercial terms, freight and logistics, border regulations, legal practices, languages, currency and payment collections.

Additionally, UK Export Finance (UKEF) recently announced it would be providing support to companies that supply exporters, enabling them to participate in significant export contracts. Hopefully this will mean that SMEs across the UK will be more able to benefit from trading overseas.

This announcement comes just three months after UKEF pledged to deliver £3bn of export finance in partnership with five UK banks.

International expansion can propel a business to dizzying heights in the long

34 | NACFB Magazine

term, but usually requires investment in the short – and this is where business funders can help. Export finance is a useful facility as it not only provides businesses with funding, but also access to wider exporting advice from experts, and there are many funders out there that are well placed to help businesses tackle exporting. It is the responsibility of business owners to shop around to ensure they are getting the right deal for them when it comes to funding.

In October 2016, the UK recorded the highest level of exports of goods and services since records began, exporting £46.4bn. This record high level was propped up by an increase in exports to non-EU countries, pointing towards the wider opportunities on offer to UK businesses. Unfortunately, recent export figures showed a decline, with the total value of exports in August 2017 standing at £25.9bn. This decrease should be a sign that we need specialist brokers to help SMEs maintain the growth in exports.

It is fantastic to see that the UK government is on the pulse of business with the recent partnership between UKEF and five retail banks. However, I would urge the government to also look beyond the traditional high street banks, and encourage businesses up and down the country to partner with specialists that can guide them through the myriad challenges associated with cross-border trade.

UK business is ambitious. There is appetite from foreign businesses to trade with the UK, despite the uncertainty of how trade will work, and those relationships need to be built now, rather than waiting until Brexit. If that ambition is channelled correctly, it will only be a matter of time before ‘made in Britain’ labels are in more households all over the world.

British business can succeed.

NACFB Magazine | 35

Special | features An up-to-date insight into the industry

Brokers,

how you can support ‘made in Britain’ Craig Durnell Managing director, export finance Bibby Financial Services

The scale of opportunity for SMEs to grow through exports is at risk. The uncertainty and speculation surrounding the UK’s future relationship with the EU, the finer details of a potential trade deal and the impact of leaving both the customs union and the single market are all weighing hard on business decision makers.

T

he number of SMEs exporting in the UK is relatively modest (currently just one in five SMEs), with many businesses put off by how complicated it can seem at first, and the international complexities that need to be considered.

Indeed, Bibby Financial Services’ (BFS) 2017 Global Business Monitor report recently found that currency fluctuations are seen as the greatest barrier to international trade among Britain’s SMEs. But the UK’s decision to leave the EU has thrust the issue of international trade firmly into the spotlight.

In order to break through the various barriers that stand between British companies and trading overseas, it is essential for SMEs to have a plan and take advantage of the support available – including speaking to a specialist finance broker. Most first time exporters can be confused by where to start, but there are a number of organisations supporting small businesses to help them understand the potential of trading with overseas markets.

At BFS, we advise our clients on a daily basis on international commercial terms, freight and logistics, border regulations, legal practices, languages, currency and payment collections.

Additionally, UK Export Finance (UKEF) recently announced it would be providing support to companies that supply exporters, enabling them to participate in significant export contracts. Hopefully this will mean that SMEs across the UK will be more able to benefit from trading overseas.

This announcement comes just three months after UKEF pledged to deliver £3bn of export finance in partnership with five UK banks.

International expansion can propel a business to dizzying heights in the long

34 | NACFB Magazine

term, but usually requires investment in the short – and this is where business funders can help. Export finance is a useful facility as it not only provides businesses with funding, but also access to wider exporting advice from experts, and there are many funders out there that are well placed to help businesses tackle exporting. It is the responsibility of business owners to shop around to ensure they are getting the right deal for them when it comes to funding.

In October 2016, the UK recorded the highest level of exports of goods and services since records began, exporting £46.4bn. This record high level was propped up by an increase in exports to non-EU countries, pointing towards the wider opportunities on offer to UK businesses. Unfortunately, recent export figures showed a decline, with the total value of exports in August 2017 standing at £25.9bn. This decrease should be a sign that we need specialist brokers to help SMEs maintain the growth in exports.

It is fantastic to see that the UK government is on the pulse of business with the recent partnership between UKEF and five retail banks. However, I would urge the government to also look beyond the traditional high street banks, and encourage businesses up and down the country to partner with specialists that can guide them through the myriad challenges associated with cross-border trade.

UK business is ambitious. There is appetite from foreign businesses to trade with the UK, despite the uncertainty of how trade will work, and those relationships need to be built now, rather than waiting until Brexit. If that ambition is channelled correctly, it will only be a matter of time before ‘made in Britain’ labels are in more households all over the world.

British business can succeed.

NACFB Magazine | 35

SPECIAL FEATURES

MFS FAST, FLEXIBLE & EFFICIENT

Entering a new realm within P2P

Paul Marston Managing director, commercial finance RateSetter

H

ire purchase finance makes huge sense for businesses, and is one of the most popular forms of funding for fast-growing SMEs that want to purchase the tools they need to grow or become more productive.

It’s not hard to see why: businesses benefit from the ability to own a valuable piece of equipment that they wouldn’t otherwise have been able to finance up front, and the fact that the funder takes security means that it can consider funding which would not be possible under a standard arrangement. In many cases, that finance can also be offered at a lower rate.

RateSetter entered the market in August 2017, announcing the launch of our business hire purchase product, followed closely by consumer hire purchase. However, it’s not a straightforward product to launch, and especially not in the P2P marketplace. There are two challenges: one obvious, the other more subtle.

The other challenge is around VAT. Without going into too much of the gritty financial detail, we set up a structure – cleared by HMRC – in order to ensure that VAT is accounted for and attributed correctly.

As a result, we’re now able to provide hire purchase agreements to businesses. As well as hard assets – such as machinery, vehicles and engineering equipment – we’re also able to finance soft assets – telephony, computers and office equipment, for example – at competitive rates. To be able to offer a hire purchase agreement on soft business assets from 7.5% is something businesses really value, and we think it gives us a significant advantage in a marketplace with a good deal of healthy competition.

One of the first agreements we completed was for a longstanding specialist broadcasting business, which covers sport, music and entertainment events. The agreement is to finance the acquisition of new, outside broadcasting equipment, allowing them to easily travel to events for filming rather than being tied to a studio.

However, we’re also focusing on speed: we know that obtaining funding as quickly as possible is important to brokers and introducers. Once we’ve reviewed a proposal, we can provide a credit decision within four hours, Monday to Friday, for agreements of up to £150,000. For larger transactions, up to £750,000, we can provide a decision within one working day of receiving all supporting documentation.

• LOANS FROM £200K TO £10M

020 7060 1234

• 75% LTV

info@mfsuk.com

• RATES AS LOW AS 0.75% PER MONTH

www.mfsuk.com

• BESPOKE BRIDGING WITH NO HIDDEN COSTS

Berkeley Square House, Berkeley Square, Mayfair, London W1J 6BD

• SIMPLE APPLICATION PROCESS

“EXCELLENCE IS NOT AN ACT BUT A HABIT” A S R E C E N T LY F E AT U R E D I N

We launched our hire purchase offering in August 2017, and approved more than a quarter of a million of pounds’ worth of funding in our first week. We won’t be right for every business, but if your clients are interested in hire purchase, it’s good to have another option on the table.

Associate Lender

36 | NACFB Magazine

First, business hire purchase agreements are secured. That all sounds very well on paper, but what do you do when you suddenly have to take control of, say, a 27-ton drilling machine that you’ve financed and now have to use it to make a recovery?

Hire purchase requires specialist knowledge, to value and consider the recovery potential for sometimes esoteric equipment. To that end we partnered with Corporate Asset Solutions – our authorised representative for hire purchase – managing the end-toend asset finance process on our behalf.

EXPERTS IN BESPOKE, TAILORED BRIDGING SOLUTIONS

Association of Bridging Professionals

SPECIAL FEATURES

MFS FAST, FLEXIBLE & EFFICIENT

Entering a new realm within P2P

Paul Marston Managing director, commercial finance RateSetter

H

ire purchase finance makes huge sense for businesses, and is one of the most popular forms of funding for fast-growing SMEs that want to purchase the tools they need to grow or become more productive.

It’s not hard to see why: businesses benefit from the ability to own a valuable piece of equipment that they wouldn’t otherwise have been able to finance up front, and the fact that the funder takes security means that it can consider funding which would not be possible under a standard arrangement. In many cases, that finance can also be offered at a lower rate.

RateSetter entered the market in August 2017, announcing the launch of our business hire purchase product, followed closely by consumer hire purchase. However, it’s not a straightforward product to launch, and especially not in the P2P marketplace. There are two challenges: one obvious, the other more subtle.

The other challenge is around VAT. Without going into too much of the gritty financial detail, we set up a structure – cleared by HMRC – in order to ensure that VAT is accounted for and attributed correctly.

As a result, we’re now able to provide hire purchase agreements to businesses. As well as hard assets – such as machinery, vehicles and engineering equipment – we’re also able to finance soft assets – telephony, computers and office equipment, for example – at competitive rates. To be able to offer a hire purchase agreement on soft business assets from 7.5% is something businesses really value, and we think it gives us a significant advantage in a marketplace with a good deal of healthy competition.

One of the first agreements we completed was for a longstanding specialist broadcasting business, which covers sport, music and entertainment events. The agreement is to finance the acquisition of new, outside broadcasting equipment, allowing them to easily travel to events for filming rather than being tied to a studio.

However, we’re also focusing on speed: we know that obtaining funding as quickly as possible is important to brokers and introducers. Once we’ve reviewed a proposal, we can provide a credit decision within four hours, Monday to Friday, for agreements of up to £150,000. For larger transactions, up to £750,000, we can provide a decision within one working day of receiving all supporting documentation.

• LOANS FROM £200K TO £10M

020 7060 1234

• 75% LTV

info@mfsuk.com

• RATES AS LOW AS 0.75% PER MONTH

www.mfsuk.com

• BESPOKE BRIDGING WITH NO HIDDEN COSTS

Berkeley Square House, Berkeley Square, Mayfair, London W1J 6BD

• SIMPLE APPLICATION PROCESS

“EXCELLENCE IS NOT AN ACT BUT A HABIT” A S R E C E N T LY F E AT U R E D I N

We launched our hire purchase offering in August 2017, and approved more than a quarter of a million of pounds’ worth of funding in our first week. We won’t be right for every business, but if your clients are interested in hire purchase, it’s good to have another option on the table.

Associate Lender

36 | NACFB Magazine

First, business hire purchase agreements are secured. That all sounds very well on paper, but what do you do when you suddenly have to take control of, say, a 27-ton drilling machine that you’ve financed and now have to use it to make a recovery?

Hire purchase requires specialist knowledge, to value and consider the recovery potential for sometimes esoteric equipment. To that end we partnered with Corporate Asset Solutions – our authorised representative for hire purchase – managing the end-toend asset finance process on our behalf.

EXPERTS IN BESPOKE, TAILORED BRIDGING SOLUTIONS

Association of Bridging Professionals

SPECIAL FEATURES

Are you ready?

The Bank of England raises rates for the first time in a decade

O

n 2nd November, the Bank of England’s Monetary Policy Committee (MPC) voted in favour of increasing the Bank’s base rate from 0.25% to 0.50%.

The vote passed by a majority of 7-2 and was highly anticipated by London’s financial industry. With the Bank claiming it “stands ready to respond to changes in the economic outlook as they unfold”, many expect further, gradual rate rises to follow in order to return to the Bank’s inflation target of 2%, which rose above 3% in September.

Mortgage borrowers with variable rates have claimed the limelight as the market waits to see the effect of the rate rise. However, the commercial finance sector must also be ready for any effects that may arise from the Bank’s decision, such as higher lending rates or reduced borrowing.

A selection of the NACFB’s Patrons share their views on what is next for the industry, and what brokers should brace themselves for in the coming months.

38 | NACFB Magazine

SPECIAL FEATURES

Paresh Raja, CEO, MFS:

Bob Young, CEO, Fleet Mortgages:

While yesterday’s interest rate rise comes as no surprise, this signals a significant turning point for the property market. For brokers, they are likely to see an increase in the number of borrowers seeking fixed-rate mortgage deals, and with further rises scheduled over the coming months, they will no doubt be looking for longer fixed deals.

There was little surprise in the MPC voting to push the bank base rate back up to 0.5%, following its decision to cut it last year in the wake of the EU referendum vote. We don’t see this rate increase having much impact on the buy-to-let market – rates have been edging higher over the past few weeks because of movement in the capital markets but, from a product point of view, will be held back because of the competitive pressures between lenders.

“With the interest rate now sitting at 0.5%, this is a prime opportunity for the government to address issues like real estate demand and Stamp Duty to ensure the market remains buoyant and readily accessible for homebuyers and investors alike.”

Pete Ball, personal finance CEO, Together: Our rates will remain the same for both new and existing customers, regardless of the increase in the base rate to 0.5%, announced by the Bank of England.”

Rishi Passi, CEO, Oblix Capital: The BoE’s decision to raise the base interest rate from 0.25% to 0.50% generally means the cost of borrowing will be slightly increasing, however, for borrowers using the LIBOR mechanism, the sudden impact of higher borrowing has been somewhat mitigated by a general rise in rates over the past few weeks.

“Over the past 10 years rates have been falling, and borrowers have become somewhat accustomed to rock bottom rates. Now that the trend has reversed, and with the current economic outlook indicating that further rate increases are on the cards, it may cause some concern and uncertainty on what the future holds for borrowers.

“The immediate impact is likely to be mixed, with new borrower activity potentially slowing while existing borrower activity [is] likely to increase as businesses and individuals rush to source and lock in the cheapest rates for as long as possible.”

“… I suspect the BBR [Bank of England base rate] increase is designed to send more of a message to homeowning borrowers that rates can go up, and are not always going to be at historically low levels.”

Rebecca Shafran, research economist, Maslow Capital: The much-anticipated decision by the MPC to raise interest rates for the first time in a decade to 0.5% in November will have little immediate effect on the UK housing market. For Maslow Capital, what is key now is the speed and size of future interest rate rises and the subsequent impact they will have on house prices.

“In parts of the country where affordability is already stretched, future rate rises will be felt more severely and this is why we see that increasing affordable housing supply in the right locations will be fundamental in driving the UK housing market forward.”

Mark Kibblewhite, non-executive director, Invest & Fund: It’s the first rate rise since 2007, so in some ways it’s significant, but it’s also important to remember it’s a small rise from a low base.

“The big question for brokers and developers is if a rate rise translates to a potential increase in borrowing costs. We haven’t seen any upward pressure on rates from our lending community and our lenders have a real thirst to see more loans from good quality projects and high calibre developers. That should be the case across the alternative finance industry and it’s unlikely to change.

“Over the long term, there may be some concern that rising rates, alongside other pressures, might trigger a drop or slowdown in the housing market. House prices have fallen in certain geographic regions, but recent figures showed a general 4.5% increase across the market in October and the housing shortage is still a problem to be solved. A house price slowdown would be more of a consideration for larger projects that take longer to build and sell, and less of a concern for smaller sized developments that complete faster, which is the segment of the market we serve.”

NACFB Magazine | 39

SPECIAL FEATURES

Are you ready?

The Bank of England raises rates for the first time in a decade

O

n 2nd November, the Bank of England’s Monetary Policy Committee (MPC) voted in favour of increasing the Bank’s base rate from 0.25% to 0.50%.

The vote passed by a majority of 7-2 and was highly anticipated by London’s financial industry. With the Bank claiming it “stands ready to respond to changes in the economic outlook as they unfold”, many expect further, gradual rate rises to follow in order to return to the Bank’s inflation target of 2%, which rose above 3% in September.

Mortgage borrowers with variable rates have claimed the limelight as the market waits to see the effect of the rate rise. However, the commercial finance sector must also be ready for any effects that may arise from the Bank’s decision, such as higher lending rates or reduced borrowing.

A selection of the NACFB’s Patrons share their views on what is next for the industry, and what brokers should brace themselves for in the coming months.

38 | NACFB Magazine

SPECIAL FEATURES

Paresh Raja, CEO, MFS:

Bob Young, CEO, Fleet Mortgages:

While yesterday’s interest rate rise comes as no surprise, this signals a significant turning point for the property market. For brokers, they are likely to see an increase in the number of borrowers seeking fixed-rate mortgage deals, and with further rises scheduled over the coming months, they will no doubt be looking for longer fixed deals.

There was little surprise in the MPC voting to push the bank base rate back up to 0.5%, following its decision to cut it last year in the wake of the EU referendum vote. We don’t see this rate increase having much impact on the buy-to-let market – rates have been edging higher over the past few weeks because of movement in the capital markets but, from a product point of view, will be held back because of the competitive pressures between lenders.

“With the interest rate now sitting at 0.5%, this is a prime opportunity for the government to address issues like real estate demand and Stamp Duty to ensure the market remains buoyant and readily accessible for homebuyers and investors alike.”

Pete Ball, personal finance CEO, Together: Our rates will remain the same for both new and existing customers, regardless of the increase in the base rate to 0.5%, announced by the Bank of England.”

Rishi Passi, CEO, Oblix Capital: The BoE’s decision to raise the base interest rate from 0.25% to 0.50% generally means the cost of borrowing will be slightly increasing, however, for borrowers using the LIBOR mechanism, the sudden impact of higher borrowing has been somewhat mitigated by a general rise in rates over the past few weeks.

“Over the past 10 years rates have been falling, and borrowers have become somewhat accustomed to rock bottom rates. Now that the trend has reversed, and with the current economic outlook indicating that further rate increases are on the cards, it may cause some concern and uncertainty on what the future holds for borrowers.

“The immediate impact is likely to be mixed, with new borrower activity potentially slowing while existing borrower activity [is] likely to increase as businesses and individuals rush to source and lock in the cheapest rates for as long as possible.”

“… I suspect the BBR [Bank of England base rate] increase is designed to send more of a message to homeowning borrowers that rates can go up, and are not always going to be at historically low levels.”

Rebecca Shafran, research economist, Maslow Capital: The much-anticipated decision by the MPC to raise interest rates for the first time in a decade to 0.5% in November will have little immediate effect on the UK housing market. For Maslow Capital, what is key now is the speed and size of future interest rate rises and the subsequent impact they will have on house prices.

“In parts of the country where affordability is already stretched, future rate rises will be felt more severely and this is why we see that increasing affordable housing supply in the right locations will be fundamental in driving the UK housing market forward.”

Mark Kibblewhite, non-executive director, Invest & Fund: It’s the first rate rise since 2007, so in some ways it’s significant, but it’s also important to remember it’s a small rise from a low base.

“The big question for brokers and developers is if a rate rise translates to a potential increase in borrowing costs. We haven’t seen any upward pressure on rates from our lending community and our lenders have a real thirst to see more loans from good quality projects and high calibre developers. That should be the case across the alternative finance industry and it’s unlikely to change.

“Over the long term, there may be some concern that rising rates, alongside other pressures, might trigger a drop or slowdown in the housing market. House prices have fallen in certain geographic regions, but recent figures showed a general 4.5% increase across the market in October and the housing shortage is still a problem to be solved. A house price slowdown would be more of a consideration for larger projects that take longer to build and sell, and less of a concern for smaller sized developments that complete faster, which is the segment of the market we serve.”

NACFB Magazine | 39

SPECIAL FEATURES

Three essential takeaways from the Autumn Budget

SPECIAL FEATURES

The OBR also slashed its productivity forecast and raised its prediction for the budget deficit, despite lower borrowing in 2017

On 22nd November, chancellor of the exchequer Philip Hammond delivered his much anticipated Autumn Budget to the House of Commons.

Vera Sugar Editor NACFB Magazine

T

he chancellor was faced with the challenge of sending a positive and confident message through his speech, following the Office for Budget Responsibility’s (OBR) decision to cut its forecast for GDP growth this year from 2% to 1.5% and 1.4% in 2018, predicting a rise only for 2021.

The OBR also slashed its productivity forecast and raised its prediction for the budget deficit, despite lower borrowing in 2017.

The main focus of the Budget included measures towards fixing the UK housing market and planning process, as well as stamp duty and investment packages to tackle issues throughout the economic landscape.

Brexit The chancellor claimed “the negotiations on our future relationship with the EU are in a critical phase,” and pledged a fund of £3bn for Brexit preparations over the next two years, to ensure that the UK is ready for “every possible outcome”.

“I stand ready to allocate further sums if and when needed,” he added.

abolition of stamp duty for first-time buyers of homes worth up to £300,000, as well as for the first £300,000 of the purchase price of properties up to £500,000.

The chancellor also outlined a minimum of £44bn in capital funding, loans and guarantees committed to support the housing market over the next five years, with the aim of building 300,000 homes on average each year by the mid-2020s – which would be the highest level since the 1970s. According to the chancellor, the funding would include £1.1bn to unlock strategic sites, new settlements and urban regeneration schemes and £2.7bn to more than double the housing infrastructure fund.

In addition, a further £1.5bn was allocated for the Home Building Fund, providing loans for and supporting SME builders.

Mr Hammond said: “If we don’t do more to support the growth of the SME housebuilding sector, we will remain dependent on the major national housebuilders that dominate the industry.

“And if we don’t train the construction workers of tomorrow, we may generate planning permissions, but we will not turn them into homes.

“Solving this challenge will require money, planning reform and intervention.

“So today we set out an ambitious plan to tackle the housing challenge.”

“No one should doubt our resolve!”

40 | NACFB Magazine

The fund has sparked speculations in many circles of being set aside as a contingency plan in case of a ‘hard’ or no-deal exit from the EU.

The chancellor’s plans for the property market also included a clampdown on empty homes, introducing a 100% empty homes premium which councils will be able to impose (currently at 50%).

Home building Taking steps to solve the UK housing crisis was one of the main themes of the 2017 Budget. One of the most significant announcements in this field was the

Planning With regards to planning permissions – considered a major cause behind the current housing crisis – the chancellor claimed there was a need for reform, and announced the

establishment of an urgent review of the gap between planning permissions issued and the number of housing starts, chaired

by Oliver Letwin, the MP for West Dorset.

An interim report is to be published in time for the Spring Statement in 2018.

The measures aim to help reduce red tape, as well as get those already in possession of planning permission building and reduce ‘land banking’.

The chancellor claimed “there is a significant gap between the number of planning permissions granted and the number of homes built.

“In London alone, there are 270,000 residential planning permissions unbuilt.

“We need to understand why.”

Other key points of the Autumn Budget include: A £34m fund towards developing construction skills, including bricklaying and plastering, in order to tackle skills shortage. The fund will be overseen by the government, the Trades Union Congress and the Confederation of British Industry, who will also decide on other areas of the economy where new skills or training courses are required.

Business rates will be pegged to the consumer price index (CPI) from April 2018, two years earlier than planned (business rates currently rise in line with the retail price index). Revaluations will take place every three years starting from the next revaluation (due in 2022).

Pubs in England will continue to receive a £1,000 business rates discount in 2018, applicable to establishments with a rateable value of up to £100,000. £2.5bn of new resources have been allocated for the British Business

NACFB Magazine | 41

SPECIAL FEATURES

Three essential takeaways from the Autumn Budget

SPECIAL FEATURES

The OBR also slashed its productivity forecast and raised its prediction for the budget deficit, despite lower borrowing in 2017

On 22nd November, chancellor of the exchequer Philip Hammond delivered his much anticipated Autumn Budget to the House of Commons.

Vera Sugar Editor NACFB Magazine

T

he chancellor was faced with the challenge of sending a positive and confident message through his speech, following the Office for Budget Responsibility’s (OBR) decision to cut its forecast for GDP growth this year from 2% to 1.5% and 1.4% in 2018, predicting a rise only for 2021.

The OBR also slashed its productivity forecast and raised its prediction for the budget deficit, despite lower borrowing in 2017.

The main focus of the Budget included measures towards fixing the UK housing market and planning process, as well as stamp duty and investment packages to tackle issues throughout the economic landscape.

Brexit The chancellor claimed “the negotiations on our future relationship with the EU are in a critical phase,” and pledged a fund of £3bn for Brexit preparations over the next two years, to ensure that the UK is ready for “every possible outcome”.

“I stand ready to allocate further sums if and when needed,” he added.

abolition of stamp duty for first-time buyers of homes worth up to £300,000, as well as for the first £300,000 of the purchase price of properties up to £500,000.

The chancellor also outlined a minimum of £44bn in capital funding, loans and guarantees committed to support the housing market over the next five years, with the aim of building 300,000 homes on average each year by the mid-2020s – which would be the highest level since the 1970s. According to the chancellor, the funding would include £1.1bn to unlock strategic sites, new settlements and urban regeneration schemes and £2.7bn to more than double the housing infrastructure fund.

In addition, a further £1.5bn was allocated for the Home Building Fund, providing loans for and supporting SME builders.

Mr Hammond said: “If we don’t do more to support the growth of the SME housebuilding sector, we will remain dependent on the major national housebuilders that dominate the industry.

“And if we don’t train the construction workers of tomorrow, we may generate planning permissions, but we will not turn them into homes.

“Solving this challenge will require money, planning reform and intervention.

“So today we set out an ambitious plan to tackle the housing challenge.”

“No one should doubt our resolve!”

40 | NACFB Magazine

The fund has sparked speculations in many circles of being set aside as a contingency plan in case of a ‘hard’ or no-deal exit from the EU.

The chancellor’s plans for the property market also included a clampdown on empty homes, introducing a 100% empty homes premium which councils will be able to impose (currently at 50%).

Home building Taking steps to solve the UK housing crisis was one of the main themes of the 2017 Budget. One of the most significant announcements in this field was the

Planning With regards to planning permissions – considered a major cause behind the current housing crisis – the chancellor claimed there was a need for reform, and announced the

establishment of an urgent review of the gap between planning permissions issued and the number of housing starts, chaired

by Oliver Letwin, the MP for West Dorset.

An interim report is to be published in time for the Spring Statement in 2018.

The measures aim to help reduce red tape, as well as get those already in possession of planning permission building and reduce ‘land banking’.

The chancellor claimed “there is a significant gap between the number of planning permissions granted and the number of homes built.

“In London alone, there are 270,000 residential planning permissions unbuilt.

“We need to understand why.”

Other key points of the Autumn Budget include: A £34m fund towards developing construction skills, including bricklaying and plastering, in order to tackle skills shortage. The fund will be overseen by the government, the Trades Union Congress and the Confederation of British Industry, who will also decide on other areas of the economy where new skills or training courses are required.

Business rates will be pegged to the consumer price index (CPI) from April 2018, two years earlier than planned (business rates currently rise in line with the retail price index). Revaluations will take place every three years starting from the next revaluation (due in 2022).

Pubs in England will continue to receive a £1,000 business rates discount in 2018, applicable to establishments with a rateable value of up to £100,000. £2.5bn of new resources have been allocated for the British Business

NACFB Magazine | 41

SPECIAL FEATURES

SPECIAL FEATURES

Real GDP g rowth fan chart

Bank, which the Bank claims, together with existing resources, will unlock up to £13bn of SME finance.

5

The national living wage for those aged 25 or over will increase by 4.4%, from £7.50 an hour to £7.83.

March forecast 4

Percentage change on a year earlier

November forecast

How was the Budget received?

Reactions to the Autumn Budget from the commercial finance market were generally positive, with many calls for active intervention to follow the plans outlined.

3

2

Christian Faes, co-founder and CEO of LendInvest, said: “Philip Hammond has shown that this is a government that’s finally ready to intervene in the property market, and this will be welcomed by industry. Now they must leverage the capacity of lenders in the market to get funds out to those that need it and can get Britain building, finally.”

1

0

-1

-2 2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Source: ONS, OBR

“House building targets have been made and missed for quite some time. It begs the question: what is going to be different this time round? We look forward to seeing detailed plans as it’s extremely important the government focuses on building the right housing, in the right places, supported by the right infrastructure, with SME house builders leading the charge.”

Prod uctivity g rowth (output per hour) - forecasts and outturns 120 115 110

Pre-crisis average

June 2010

Successive forecasts November 2017 Outturn

Simon Knowles, head of property development at Aldermore, added: “We welcome the chancellor’s announcement to provide £1.5bn of crucial funding for SME builders. This much-needed boost will help smaller and medium-sized builders to get the construction industry moving, which will help create supply in the market again.”

2009 Q1 = 100

105

Post-crisis average

100 95 90 85 80 19 9 9 2001 2003 2005 2007 2009 2011 2013 Note: Solid lines represent the outturn data that underpinned the forecast.

Source: ONS, OBR

42 | NACFB Magazine

2015

2017

2019

2021

Charles McDowell, commercial director, mortgages at Aldermore, said he was pleased to see housing on top of the agenda, especially with regards to the stamp duty relief for first-time buyers, but highlighted the need for the government to act on promises with regards to affordable housing.

2023

James Bloom, managing director of shortterm lending at Masthaven, shared Charles’ views on the need to follow up on Budget plans with action: “The government has been trying to fix the undersupply of new homes for many years, but so far none of the measures have worked sufficiently. I think fundamental issues with the housing market remain, for example the number of new homes being built which has led to missed targets and undersupply. Whether today’s new measures will alleviate the structural

issues remains to be seen; this will become clearer over the coming weeks and months.”

Martine Catton, sales and marketing director at Catalyst Business Finance, said the OBR’s downgraded predictions represented a slight worry as the chancellor gave no reason for the revisions.

“One can only presume it is Brexitrelated and comes from a position of the unknown as to how the withdrawal from the EU will impact the economy and productivity,” she said.

“It was a shame that the chancellor and the government didn’t indicate any solutions to help improve this forecast. However, it was refreshing to hear of the commitment to increase the focus on the digital economy and investing in the future of the development of skills, innovation and R&D in this area.”

However, Narinder Khattoare, group operations director at Kuflink Bridging, expressed a more positive outlook for the short-term sector, claiming the boost for first-time buyers could lead to renewed interest in this field too: “Renewed [first-time buyer] interest in home purchase will be a spur to builders, and the smaller builders will be looking for funding to help them finance land purchase and development costs. The short-term sector may well be the logical place to seek it.”

He added: “At the beginning of his speech, the underlying message from the chancellor signalled that, regardless of the way the UK leaves the EU, financially the country will be prepared. That point could be very significant in the months to come.”

NACFB Magazine | 43

SPECIAL FEATURES

SPECIAL FEATURES

Real GDP g rowth fan chart

Bank, which the Bank claims, together with existing resources, will unlock up to £13bn of SME finance.

5

The national living wage for those aged 25 or over will increase by 4.4%, from £7.50 an hour to £7.83.

March forecast 4

Percentage change on a year earlier

November forecast

How was the Budget received?

Reactions to the Autumn Budget from the commercial finance market were generally positive, with many calls for active intervention to follow the plans outlined.

3

2

Christian Faes, co-founder and CEO of LendInvest, said: “Philip Hammond has shown that this is a government that’s finally ready to intervene in the property market, and this will be welcomed by industry. Now they must leverage the capacity of lenders in the market to get funds out to those that need it and can get Britain building, finally.”

1

0

-1

-2 2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Source: ONS, OBR

“House building targets have been made and missed for quite some time. It begs the question: what is going to be different this time round? We look forward to seeing detailed plans as it’s extremely important the government focuses on building the right housing, in the right places, supported by the right infrastructure, with SME house builders leading the charge.”

Prod uctivity g rowth (output per hour) - forecasts and outturns 120 115 110

Pre-crisis average

June 2010

Successive forecasts November 2017 Outturn

Simon Knowles, head of property development at Aldermore, added: “We welcome the chancellor’s announcement to provide £1.5bn of crucial funding for SME builders. This much-needed boost will help smaller and medium-sized builders to get the construction industry moving, which will help create supply in the market again.”

2009 Q1 = 100

105

Post-crisis average

100 95 90 85 80 19 9 9 2001 2003 2005 2007 2009 2011 2013 Note: Solid lines represent the outturn data that underpinned the forecast.

Source: ONS, OBR

42 | NACFB Magazine

2015

2017

2019

2021

Charles McDowell, commercial director, mortgages at Aldermore, said he was pleased to see housing on top of the agenda, especially with regards to the stamp duty relief for first-time buyers, but highlighted the need for the government to act on promises with regards to affordable housing.

2023

James Bloom, managing director of shortterm lending at Masthaven, shared Charles’ views on the need to follow up on Budget plans with action: “The government has been trying to fix the undersupply of new homes for many years, but so far none of the measures have worked sufficiently. I think fundamental issues with the housing market remain, for example the number of new homes being built which has led to missed targets and undersupply. Whether today’s new measures will alleviate the structural

issues remains to be seen; this will become clearer over the coming weeks and months.”

Martine Catton, sales and marketing director at Catalyst Business Finance, said the OBR’s downgraded predictions represented a slight worry as the chancellor gave no reason for the revisions.

“One can only presume it is Brexitrelated and comes from a position of the unknown as to how the withdrawal from the EU will impact the economy and productivity,” she said.

“It was a shame that the chancellor and the government didn’t indicate any solutions to help improve this forecast. However, it was refreshing to hear of the commitment to increase the focus on the digital economy and investing in the future of the development of skills, innovation and R&D in this area.”

However, Narinder Khattoare, group operations director at Kuflink Bridging, expressed a more positive outlook for the short-term sector, claiming the boost for first-time buyers could lead to renewed interest in this field too: “Renewed [first-time buyer] interest in home purchase will be a spur to builders, and the smaller builders will be looking for funding to help them finance land purchase and development costs. The short-term sector may well be the logical place to seek it.”

He added: “At the beginning of his speech, the underlying message from the chancellor signalled that, regardless of the way the UK leaves the EU, financially the country will be prepared. That point could be very significant in the months to come.”

NACFB Magazine | 43

Compliance | update The latest from our in-house compliance team

The thorny issue of complaint handling In mid-September, the FCA published its ‘Dear CEO’ letter in relation to consumer credit firms and their handling of complaints. Here we discuss the key points from the letter and reflect upon the watchdog’s findings, compiled from firms’ data, final response letters and website information.

James Hinch Compliance consultant NACFB

T

he review itself looked at how consumer credit firms approached and dealt with customer complaints, and while some examples of good practice were identified, there were many examples of non-compliance and other concerning practices which indicated that some firms were not getting the basics right.

The FCA defines a complaint as “any oral or written expression of dissatisfaction, whether justified or not, from, or on behalf of, a person about the provision of, or failure to provide, a financial service or a redress determination”.

It has been an active requirement since 30th June 2016 to record each complaint, including those captured

44 | NACFB Magazine

under the three business day rule. The FCA noted that since June 2016, an increase of reportable complaints was expected, but in a significant number of instances this was not the case.

A firm’s attitude towards how complaints are handled is a key indicator of its overall culture and whether customers are at the heart of what they do. Businesses with the right culture look for new ways to improve, and understand that complaints provide an opportunity to identify any failings within their business and directly address them – which in turn develops positive future relationships with customers.

Complaint handling can be a resource-intensive challenge for some; complaints are considered a burden or simply annoying and are not then taken seriously enough. This breeds poor cultures and ones which will ultimately lead to negative outcomes, for both the firm and the complainant.

The main concerns identified by the FCA were: a failure to provide to customers the required information about the Financial Ombudsman Service – this included a failure to provide details of the complainant’s right to ombudsman referral if they remain dissatisfied a failure to provide a clear explanation to the complainant of any outcomes and why they had been arrived at a clear lack of management controls in place to analyse and remedy any root causes of complaints or potentially systemic problems.

Under the Dispute Resolution (DISP) rules, it is a requirement for every firm – regardless of whether it is a oneman band or a national organisation – to provide information about the Financial Ombudsman Service. Even if you outsource complaint handling, your firm must have proper internal controls in place to make sure that this is being conducted compliantly.

Responses should be thoroughly investigated with an explanation to the complainant, covering an assessment of the complaint, any decision made and any offer of corrective action or compensation, including the referral rights to the Financial Ombudsman Service. This prescribed information can be found within the regulator’s DISP sourcebook.

A firm’s attitude towards how complaints are handled is a key indicator of its overall culture

not being able to identify the causes or outcomes of poor practices, which leads to more customers being affected by the same issues.

Some customers may not even complain about a poor practice or outcome and, therefore, are not being treated fairly, which becomes a breach of regulation under the overarching principles of business.

Root cause analysis is a powerful tool in achieving positive changes and can be a clear demonstration to the regulator of how the correct cultures are embedded throughout.

If you’re not sure about your complaint obligations or would like additional support, contact NACFB Compliance Support to see how we can help you.

Appropriate management controls – such as undertaking root cause analysis of complaints in order to identify and fix any recurring or systemic problems – is required by businesses. Without this, they risk

NACFB Magazine | 45

Compliance | update The latest from our in-house compliance team

The thorny issue of complaint handling In mid-September, the FCA published its ‘Dear CEO’ letter in relation to consumer credit firms and their handling of complaints. Here we discuss the key points from the letter and reflect upon the watchdog’s findings, compiled from firms’ data, final response letters and website information.

James Hinch Compliance consultant NACFB

T

he review itself looked at how consumer credit firms approached and dealt with customer complaints, and while some examples of good practice were identified, there were many examples of non-compliance and other concerning practices which indicated that some firms were not getting the basics right.

The FCA defines a complaint as “any oral or written expression of dissatisfaction, whether justified or not, from, or on behalf of, a person about the provision of, or failure to provide, a financial service or a redress determination”.

It has been an active requirement since 30th June 2016 to record each complaint, including those captured

44 | NACFB Magazine

under the three business day rule. The FCA noted that since June 2016, an increase of reportable complaints was expected, but in a significant number of instances this was not the case.

A firm’s attitude towards how complaints are handled is a key indicator of its overall culture and whether customers are at the heart of what they do. Businesses with the right culture look for new ways to improve, and understand that complaints provide an opportunity to identify any failings within their business and directly address them – which in turn develops positive future relationships with customers.

Complaint handling can be a resource-intensive challenge for some; complaints are considered a burden or simply annoying and are not then taken seriously enough. This breeds poor cultures and ones which will ultimately lead to negative outcomes, for both the firm and the complainant.

The main concerns identified by the FCA were: a failure to provide to customers the required information about the Financial Ombudsman Service – this included a failure to provide details of the complainant’s right to ombudsman referral if they remain dissatisfied a failure to provide a clear explanation to the complainant of any outcomes and why they had been arrived at a clear lack of management controls in place to analyse and remedy any root causes of complaints or potentially systemic problems.

Under the Dispute Resolution (DISP) rules, it is a requirement for every firm – regardless of whether it is a oneman band or a national organisation – to provide information about the Financial Ombudsman Service. Even if you outsource complaint handling, your firm must have proper internal controls in place to make sure that this is being conducted compliantly.

Responses should be thoroughly investigated with an explanation to the complainant, covering an assessment of the complaint, any decision made and any offer of corrective action or compensation, including the referral rights to the Financial Ombudsman Service. This prescribed information can be found within the regulator’s DISP sourcebook.

A firm’s attitude towards how complaints are handled is a key indicator of its overall culture

not being able to identify the causes or outcomes of poor practices, which leads to more customers being affected by the same issues.

Some customers may not even complain about a poor practice or outcome and, therefore, are not being treated fairly, which becomes a breach of regulation under the overarching principles of business.

Root cause analysis is a powerful tool in achieving positive changes and can be a clear demonstration to the regulator of how the correct cultures are embedded throughout.

If you’re not sure about your complaint obligations or would like additional support, contact NACFB Compliance Support to see how we can help you.

Appropriate management controls – such as undertaking root cause analysis of complaints in order to identify and fix any recurring or systemic problems – is required by businesses. Without this, they risk

NACFB Magazine | 45

Industry | guides Insider tips from the Association’s Patrons and Members

Channelling asset finance through the EFG scheme Earlier in 2017, the British Business Bank – the UK’s national economic development bank – announced Hitachi Capital as the first accredited lender for its new asset finance variant of the Enterprise Finance Guarantee (EFG) programme.

Gavin Wraith-Carter Managing director Hitachi Capital Business Finance

J

oining forces with the bank, we are the first alternative finance provider to be able to offer the asset finance EFG scheme as part of our growing services.

This move is building upon our successful relationship already in place with the British Business Bank.

We previously partnered with them for the ENABLE Funding Programme, which was a huge success. Building upon these foundations, the EFG scheme is yet another positive example of how we can work closely with the British Business Bank to open up lending to UK small businesses.

The EFG facilitates business loans to smaller businesses that are viable, but unable to obtain finance from their regular lender due to having insufficient security or track record to meet the standard requirements.

The scheme encourages funders to look at deals where the asset being acquired has uncertain or insufficient value, relative to the finance amount or term being sought. However, there can be some restrictions to

sector and asset type, for example, agriculture, cars subject to personal taxation and road freight. The scheme also applies where the borrower appears to be able to service the amount requested, but under usual conditions may not be advanced the full amount. We are focusing on nonregulated, fixed rate hire purchase and finance lease only for EFG deals.

The EFG scheme provides us with a government-backed guarantee against the outstanding facility balance, potentially enabling a ‘no’ credit decision to become a ‘yes’.

This is a game-changer for us and the wider alternative finance industry. By offering the EFG through our introducer network, together we will be able to provide our exceptional service to an expanded number of growing businesses.

As the lender, we will assess the customer risk for each potential EFG-backed transaction and request a guarantee of between 10% and 100% of the asset gap. Our customers will pay a small quarterly fee on this guaranteed amount, in addition to the standard margin and commission.

For example, an engineering company trading for five years needs

to acquire an asset costing £50,000 for their business to fulfil a new contract. The asset offers insufficient security throughout the life of the contract due to the bespoke nature of the build. Applying a 75% EFG guarantee costs the customer an additional £2,060.81 for the 60-month period. This equates to a little over £34 a month extra in this instance – a small amount for the business to gain finance to support their growth, providing us with the required comfort to say yes and lend the funds.

Backed by a wealth of experience and knowledge in particular fields we have always provided a table of attractive offers for small business owners.

Our plan for the future is to fulfil at least £25m of funding under the EFG scheme over the next 12 months.

The British Business Bank’s proactive approach to bringing products like this to market is something that we are delighted to be part of.

Being the first funder to be part of the EFG scheme for asset finance is a great privilege and we are confident that it will enable us to unlock access to asset finance for British businesses, and support their development and growth in the future.

The scheme encourages funders to look at deals where the asset being acquired has uncertain or insufficient value, relative to the finance amount or term being sought

SPEED MEETS CLARITY 020 7655 3388

FAST PROPERTY FINANCE At Commercial Acceptances speed alone is not enough.

Speak straight to decision makers: a quick & personal service. No arrangement fees, no extension fees and no end fees.

Interest charged from only 0.75% per calendar month.

Your property may be repossessed if you do not keep up on your mortgage repayments or any other debt secured on it. A rate from 0.75% will be chargeable on the amount borrowed every calendar month. However rates are subject to change and will increase or decrease in line with movements in 3m LIBOR (The London Inter-Bank Offered Rate For Three Month Sterling Deposits). Rates will be adjusted on each calendar month anniversary of the facility. The overall cost for comparison is 10.6% APR.

46 | NACFB Magazine

Industry | guides Insider tips from the Association’s Patrons and Members

Channelling asset finance through the EFG scheme Earlier in 2017, the British Business Bank – the UK’s national economic development bank – announced Hitachi Capital as the first accredited lender for its new asset finance variant of the Enterprise Finance Guarantee (EFG) programme.

Gavin Wraith-Carter Managing director Hitachi Capital Business Finance

J

oining forces with the bank, we are the first alternative finance provider to be able to offer the asset finance EFG scheme as part of our growing services.

This move is building upon our successful relationship already in place with the British Business Bank.

We previously partnered with them for the ENABLE Funding Programme, which was a huge success. Building upon these foundations, the EFG scheme is yet another positive example of how we can work closely with the British Business Bank to open up lending to UK small businesses.

The EFG facilitates business loans to smaller businesses that are viable, but unable to obtain finance from their regular lender due to having insufficient security or track record to meet the standard requirements.

The scheme encourages funders to look at deals where the asset being acquired has uncertain or insufficient value, relative to the finance amount or term being sought. However, there can be some restrictions to

sector and asset type, for example, agriculture, cars subject to personal taxation and road freight. The scheme also applies where the borrower appears to be able to service the amount requested, but under usual conditions may not be advanced the full amount. We are focusing on nonregulated, fixed rate hire purchase and finance lease only for EFG deals.

The EFG scheme provides us with a government-backed guarantee against the outstanding facility balance, potentially enabling a ‘no’ credit decision to become a ‘yes’.

This is a game-changer for us and the wider alternative finance industry. By offering the EFG through our introducer network, together we will be able to provide our exceptional service to an expanded number of growing businesses.

As the lender, we will assess the customer risk for each potential EFG-backed transaction and request a guarantee of between 10% and 100% of the asset gap. Our customers will pay a small quarterly fee on this guaranteed amount, in addition to the standard margin and commission.

For example, an engineering company trading for five years needs

to acquire an asset costing £50,000 for their business to fulfil a new contract. The asset offers insufficient security throughout the life of the contract due to the bespoke nature of the build. Applying a 75% EFG guarantee costs the customer an additional £2,060.81 for the 60-month period. This equates to a little over £34 a month extra in this instance – a small amount for the business to gain finance to support their growth, providing us with the required comfort to say yes and lend the funds.

Backed by a wealth of experience and knowledge in particular fields we have always provided a table of attractive offers for small business owners.

Our plan for the future is to fulfil at least £25m of funding under the EFG scheme over the next 12 months.

The British Business Bank’s proactive approach to bringing products like this to market is something that we are delighted to be part of.

Being the first funder to be part of the EFG scheme for asset finance is a great privilege and we are confident that it will enable us to unlock access to asset finance for British businesses, and support their development and growth in the future.

The scheme encourages funders to look at deals where the asset being acquired has uncertain or insufficient value, relative to the finance amount or term being sought

SPEED MEETS CLARITY 020 7655 3388

FAST PROPERTY FINANCE At Commercial Acceptances speed alone is not enough.

Speak straight to decision makers: a quick & personal service. No arrangement fees, no extension fees and no end fees.

Interest charged from only 0.75% per calendar month.

Your property may be repossessed if you do not keep up on your mortgage repayments or any other debt secured on it. A rate from 0.75% will be chargeable on the amount borrowed every calendar month. However rates are subject to change and will increase or decrease in line with movements in 3m LIBOR (The London Inter-Bank Offered Rate For Three Month Sterling Deposits). Rates will be adjusted on each calendar month anniversary of the facility. The overall cost for comparison is 10.6% APR.

46 | NACFB Magazine

GUIDES

GUIDES

Moving on to pastures new

Robert Suss Co-founder UK Agricultural Finance

Farm finance is on the rise again and is becoming an attractive sector as farmers need loans that can be secured on real assets.

F

ollowing the financial crash, funding the agricultural sector was difficult and many traditional sources of finance disappeared. There is a gap in funding, with several high street banks having suspended their specialist lending and lost their specialist teams, while many of the new lenders find the sector too complex. Farmers now need to find new sources of capital to sustain, grow and improve their businesses.

Farm finance is an attractive sector for brokers as competition is limited, loans tend to be large and secured against real assets. The ability to achieve liquidity by parcelling up land without damaging the whole business makes for more favourable outcomes if the business plan doesn’t develop as expected.

The government has recognised that farming requires high levels of investment and the lack of sufficient funding is a major threat to these businesses and their prospects.

Brokers able to access specialist lenders can really help their clients build their businesses.

48 | NACFB Magazine

Some of the reasons why a farmer might want access to finance are: diversification – farmers need capital to diversify and build new businesses purchasing new farmland – additional acreage or a unique property opportunity may become available and often at short notice property – finance allows farmers to develop, renovate or repair property for capital appreciation and income generation renewable energy – ‘green’ projects can be a great source of additional income and add real value to under-utilised land on a farm, or even turn waste products into revenue

acute, and a facility can provide a window for a farmer to take control and rationally plan ahead.

improves the value of their business and that they have a credible plan to repay the loan.

tenant farmers – these farmers often have a right to buy their land

Ability to secure a first charge over agricultural land and agricultural property.

generational transfer – when farmers are looking to transfer their farm to the next generation, they they can use a facility to release capital and achieve this.

The farmer’s business plan should demonstrate how a loan helps them to generate sufficient income or capital to enable them to repay the loan, refinance with the high street or roll into a term facility once completed.

What should a broker look for when sourcing this type of financing?

Little reliance on subsidy payments.

A business plan demonstrating understanding and commitment to the success of the business.

Agricultural loans – while overlooked by many brokers and master brokers - have recently gotten more attention given the size of the opportunity, with average bridge loans in the region of £2m and term loans in the region of £500,000, generating strong broker commissions.

What do farm loans usually cost?

livestock – finance for livestock is used by farmers to expand their holdings recovery and restructuring responsive and flexible finance is often needed when pressure is

To work with specialist lenders who understand the complexities of agricultural finance and that respond swiftly.

Opportunities where a farmer can demonstrate a loan is affordable,

Agricultural bridge finance loans are typically in the region of 1% a month, although better rates are possible for the highest quality loans.

Term loans – typically three to seven years – are in the region of 6.5-9.0%, with affordability calculated at 125%.

Rural property and rural businesses are highly specialist areas given the many challenges that farmers face, but don’t forget their appeal.

Brokers should look to work and build relationships with specialist lending teams that truly understand business lending against agricultural land.

It’s important to look for lenders who work with the leading experts in agricultural valuation, security and restructuring to ensure swift, informed and fair decisions and faceto-face underwriting.

Finding a lender who only lends against the agricultural sector is perhaps the best route, given the complexities of the sector, the need to move swiftly to provide financing and the ability to adapt a loan to suit the borrower’s circumstances.

NACFB Magazine | 49

GUIDES

GUIDES

Moving on to pastures new

Robert Suss Co-founder UK Agricultural Finance

Farm finance is on the rise again and is becoming an attractive sector as farmers need loans that can be secured on real assets.

F

ollowing the financial crash, funding the agricultural sector was difficult and many traditional sources of finance disappeared. There is a gap in funding, with several high street banks having suspended their specialist lending and lost their specialist teams, while many of the new lenders find the sector too complex. Farmers now need to find new sources of capital to sustain, grow and improve their businesses.

Farm finance is an attractive sector for brokers as competition is limited, loans tend to be large and secured against real assets. The ability to achieve liquidity by parcelling up land without damaging the whole business makes for more favourable outcomes if the business plan doesn’t develop as expected.

The government has recognised that farming requires high levels of investment and the lack of sufficient funding is a major threat to these businesses and their prospects.

Brokers able to access specialist lenders can really help their clients build their businesses.

48 | NACFB Magazine

Some of the reasons why a farmer might want access to finance are: diversification – farmers need capital to diversify and build new businesses purchasing new farmland – additional acreage or a unique property opportunity may become available and often at short notice property – finance allows farmers to develop, renovate or repair property for capital appreciation and income generation renewable energy – ‘green’ projects can be a great source of additional income and add real value to under-utilised land on a farm, or even turn waste products into revenue

acute, and a facility can provide a window for a farmer to take control and rationally plan ahead.

improves the value of their business and that they have a credible plan to repay the loan.

tenant farmers – these farmers often have a right to buy their land

Ability to secure a first charge over agricultural land and agricultural property.

generational transfer – when farmers are looking to transfer their farm to the next generation, they they can use a facility to release capital and achieve this.

The farmer’s business plan should demonstrate how a loan helps them to generate sufficient income or capital to enable them to repay the loan, refinance with the high street or roll into a term facility once completed.

What should a broker look for when sourcing this type of financing?

Little reliance on subsidy payments.

A business plan demonstrating understanding and commitment to the success of the business.

Agricultural loans – while overlooked by many brokers and master brokers - have recently gotten more attention given the size of the opportunity, with average bridge loans in the region of £2m and term loans in the region of £500,000, generating strong broker commissions.

What do farm loans usually cost?

livestock – finance for livestock is used by farmers to expand their holdings recovery and restructuring responsive and flexible finance is often needed when pressure is

To work with specialist lenders who understand the complexities of agricultural finance and that respond swiftly.

Opportunities where a farmer can demonstrate a loan is affordable,

Agricultural bridge finance loans are typically in the region of 1% a month, although better rates are possible for the highest quality loans.

Term loans – typically three to seven years – are in the region of 6.5-9.0%, with affordability calculated at 125%.

Rural property and rural businesses are highly specialist areas given the many challenges that farmers face, but don’t forget their appeal.

Brokers should look to work and build relationships with specialist lending teams that truly understand business lending against agricultural land.

It’s important to look for lenders who work with the leading experts in agricultural valuation, security and restructuring to ensure swift, informed and fair decisions and faceto-face underwriting.

Finding a lender who only lends against the agricultural sector is perhaps the best route, given the complexities of the sector, the need to move swiftly to provide financing and the ability to adapt a loan to suit the borrower’s circumstances.

NACFB Magazine | 49

Opinion | & commentary Thought leadership from our Patrons and Members

Spread the word on the IFIsa Paul Riddell Head of marketing and communications Lendy

O

ne of my favourite poems is ‘If–’ by Rudyard Kipling, with its evocation of stoicism. Maybe I like it because I love tennis: the inscription above the entryway to Centre Court at Wimbledon declares: “If you can meet with Triumph and Disaster/And treat those two impostors just the same”.

So an Isa with an “if” in front was always going to appeal. But will it be the product to make the P2P sector? Or will it just confuse the public, bemused by too many investment choices currently on offer?

The first UK P2P platform was launched over 12 years ago in 2005. But the sector didn’t start to gather pace until after the 2008 banking crisis, when many high street banks pulled out of lending, which has continued, with a recent fall of 7% year-on-year – from £16bn in December 2015 to £14.8bn in December 2016.

With interest on cash savings accounts at rock bottom, P2P lending can provide much greater returns; many platforms today provide interest rates for investors above 7%.

The sector is now regulated and most of the big players put in place very stringent measures to mitigate investment risk, with detailed and robust credit checking and discretionary insurance plans designed to provide cover in the rare event of a loan defaulting.

Recent events at home and abroad have made it hard to predict where investors will find steady returns on their investments. The political climate and the uncertainty of Brexit means relatively safe investment havens are hard to find.

While not risk-free and certainly not for the unsophisticated investor, P2P is a relatively simple model that’s becoming

50 | NACFB Magazine

increasingly popular with investors looking for greater returns than they can find from other asset classes.

The Innovative Finance Isa (IFIsa) was launched on 6th April 2016. It allows individuals to use some (or all) of their annual Isa investment allowance to lend funds through the growing P2P market, while receiving tax-free interest and capital gains. Although launched over a year ago, most P2P lending platforms are still unable to offer it as they require full FCA approval in order to do so.

Lendy has interim FCA approval and will offer the IFIsa when fully authorised.

As the larger lending platforms receive their FCA approval, investors will most likely begin to hear more about this interesting option in the Isa market.

Details of the first IFIsa products were released in February 2016, with some Isa providers offering expected returns of between 6-8% – a much higher rate than many traditional bank or building society cash Isa accounts are currently able to offer.

However, these two forms of Isa saving are inherently different, and it is important to

understand the key variations – particularly the risks associated with P2P lending.

In simple terms, the rates offered by IFIsa providers are typically around double the rates offered by cash Isa providers. The IFIsa providers are able to do this for a number of reasons – the key premise being that P2P lending cuts out the middle man, allowing borrowers to pay less in interest, but also allowing investors to receive more.

However, P2P loans – made via an IFIsa – are not without risk. Certainly, this is not merely a case of comparing interest rates on a like-for-like basis against bank or building society cash Isa accounts.

The higher rates of interest which are achievable under P2P loans do come with a higher risk profile – and, crucially, unlike a UK bank or building society account, P2P lending is not currently protected by the Financial Services Compensation Scheme.

By allowing the inclusion of P2P business loans in an Isa wrapper, the government has signalled its approval of this form of investing. Sometime soon it may even become mainstream.

Opinion | & commentary Thought leadership from our Patrons and Members

Spread the word on the IFIsa Paul Riddell Head of marketing and communications Lendy

O

ne of my favourite poems is ‘If–’ by Rudyard Kipling, with its evocation of stoicism. Maybe I like it because I love tennis: the inscription above the entryway to Centre Court at Wimbledon declares: “If you can meet with Triumph and Disaster/And treat those two impostors just the same”.

So an Isa with an “if” in front was always going to appeal. But will it be the product to make the P2P sector? Or will it just confuse the public, bemused by too many investment choices currently on offer?

The first UK P2P platform was launched over 12 years ago in 2005. But the sector didn’t start to gather pace until after the 2008 banking crisis, when many high street banks pulled out of lending, which has continued, with a recent fall of 7% year-on-year – from £16bn in December 2015 to £14.8bn in December 2016.

With interest on cash savings accounts at rock bottom, P2P lending can provide much greater returns; many platforms today provide interest rates for investors above 7%.

The sector is now regulated and most of the big players put in place very stringent measures to mitigate investment risk, with detailed and robust credit checking and discretionary insurance plans designed to provide cover in the rare event of a loan defaulting.

Recent events at home and abroad have made it hard to predict where investors will find steady returns on their investments. The political climate and the uncertainty of Brexit means relatively safe investment havens are hard to find.

While not risk-free and certainly not for the unsophisticated investor, P2P is a relatively simple model that’s becoming

50 | NACFB Magazine

increasingly popular with investors looking for greater returns than they can find from other asset classes.

The Innovative Finance Isa (IFIsa) was launched on 6th April 2016. It allows individuals to use some (or all) of their annual Isa investment allowance to lend funds through the growing P2P market, while receiving tax-free interest and capital gains. Although launched over a year ago, most P2P lending platforms are still unable to offer it as they require full FCA approval in order to do so.

Lendy has interim FCA approval and will offer the IFIsa when fully authorised.

As the larger lending platforms receive their FCA approval, investors will most likely begin to hear more about this interesting option in the Isa market.

Details of the first IFIsa products were released in February 2016, with some Isa providers offering expected returns of between 6-8% – a much higher rate than many traditional bank or building society cash Isa accounts are currently able to offer.

However, these two forms of Isa saving are inherently different, and it is important to

understand the key variations – particularly the risks associated with P2P lending.

In simple terms, the rates offered by IFIsa providers are typically around double the rates offered by cash Isa providers. The IFIsa providers are able to do this for a number of reasons – the key premise being that P2P lending cuts out the middle man, allowing borrowers to pay less in interest, but also allowing investors to receive more.

However, P2P loans – made via an IFIsa – are not without risk. Certainly, this is not merely a case of comparing interest rates on a like-for-like basis against bank or building society cash Isa accounts.

The higher rates of interest which are achievable under P2P loans do come with a higher risk profile – and, crucially, unlike a UK bank or building society account, P2P lending is not currently protected by the Financial Services Compensation Scheme.

By allowing the inclusion of P2P business loans in an Isa wrapper, the government has signalled its approval of this form of investing. Sometime soon it may even become mainstream.

OPINION & COMMENTARY

SHORT-TERM SPECIALIST FINANCE

It’s not enough to cheer us on

Sam Howard COO Regentsmead

S

eptember’s Construction Purchasing Managers’ Index figures did not make for pretty reading for the development industry as a whole. In fact, the construction sector experienced its sharpest decline in a year as commercial building work dries up.

We all know that it is uncertainty that affects markets, and the construction industry – which is often seen as the bellwether for the wider economy – is clearly struggling, with some commentators expecting zero growth in 2018.

We are seeing an almost perfect storm of Brexit, skills shortages, prices of raw materials rising and the longterm nature of major construction projects, which is threatening to blow the industry on to the rocks.

Let’s start with Brexit. Without a doubt it is causing businesses to halt investment and hiring, and to prepare for the void that is March 2019. Every day you read about businesses delaying major projects, reducing retail space, worrying about the effect of a no deal Brexit or actively talking about relocating overseas. Even Goldman Sachs’ CEO is tweeting that he will be spending a lot more time in

52 | NACFB Magazine

Frankfurt and, by association, so will a large number of his staff. This phenomenon and general unease is seeing demand for office space soften at an alarming rate.

Factor in reduced government spending and economic uncertainty, and developers are sitting on their hands, avoiding starting long-term projects while the outlook is so murky. It is the long-term nature of many commercial projects – often requiring commission many years before completion – that requires benign conditions before embarkation.

Construction companies will be looking at their pipelines for 2018 and there will be real concern that there may not be a satisfactory level of orders. The problem is that confidence becomes self-fulfilling and it is easy to talk the market down. This has a knock-on effect across the market and will see commercial lenders suffering from a lack of confidence to invest, plus a reduced number of deals to lend on.

Conversely, the residential housebuilding sector is bucking the trend with robust growth. This is the sector that Regentsmead has been funding in some shape or form for over 70 years.

Arguably, the residential market growth is spurred on by the government’s Help to Buy scheme and the chronic lack of supply of good-quality housing stock, which mask underlying symptoms in the industry. I have made my views known on Help to Buy previously, an initiative that serves the demand side of the housing coin and creates winners and losers with resulting house price increases. My views are that other measures to cure the stricken housing market are needed.

Loans from £30,000 to £1,000,000 Rates from as little as 1% pcm* 1st, 2nd and 3rd Charge Bridging Loans Terms 1 - 24 months Nationwide lending Average turnaround 10 DAYS

These – among others – include: the government provides a planning policy that is fit for purpose, to ensure the right houses are built in the right places a review of the green belt policy

We are all in the same boat and at a time when business confidence is waning, and there is evidence of the flow of investment, labour and services being curtailed – meaning the desire for capital is dropping – we need the government to step in.

This could well be in the shape of major infrastructure projects such as rail, road and other civil engineering schemes to boost growth and employment and hopefully kick-start the industry.

a proper social housing policy to be implemented, enabling housing associations to build the social housing that this country needs.

In both the commercial and residential development sectors it is now time for the government to step up to the plate and jump-start the ailing patients.

kuflink.co.uk | 01474 33 44 88 *Subject to underwriting criteria Kuflink Bridging Ltd is authorised and regulated by the Financial Conduct Authority. (Ref No. 723495) Registered office: 12 Helmet Row, London EC1V 3QJ. Company Registration (No. 07889226) This advert is intended for intermediary use only Your property may be repossessed if you do not keep up with repayments

Business Product Innovation of the Year

OPINION & COMMENTARY

SHORT-TERM SPECIALIST FINANCE

It’s not enough to cheer us on

Sam Howard COO Regentsmead

S

eptember’s Construction Purchasing Managers’ Index figures did not make for pretty reading for the development industry as a whole. In fact, the construction sector experienced its sharpest decline in a year as commercial building work dries up.

We all know that it is uncertainty that affects markets, and the construction industry – which is often seen as the bellwether for the wider economy – is clearly struggling, with some commentators expecting zero growth in 2018.

We are seeing an almost perfect storm of Brexit, skills shortages, prices of raw materials rising and the longterm nature of major construction projects, which is threatening to blow the industry on to the rocks.

Let’s start with Brexit. Without a doubt it is causing businesses to halt investment and hiring, and to prepare for the void that is March 2019. Every day you read about businesses delaying major projects, reducing retail space, worrying about the effect of a no deal Brexit or actively talking about relocating overseas. Even Goldman Sachs’ CEO is tweeting that he will be spending a lot more time in

52 | NACFB Magazine

Frankfurt and, by association, so will a large number of his staff. This phenomenon and general unease is seeing demand for office space soften at an alarming rate.

Factor in reduced government spending and economic uncertainty, and developers are sitting on their hands, avoiding starting long-term projects while the outlook is so murky. It is the long-term nature of many commercial projects – often requiring commission many years before completion – that requires benign conditions before embarkation.

Construction companies will be looking at their pipelines for 2018 and there will be real concern that there may not be a satisfactory level of orders. The problem is that confidence becomes self-fulfilling and it is easy to talk the market down. This has a knock-on effect across the market and will see commercial lenders suffering from a lack of confidence to invest, plus a reduced number of deals to lend on.

Conversely, the residential housebuilding sector is bucking the trend with robust growth. This is the sector that Regentsmead has been funding in some shape or form for over 70 years.

Arguably, the residential market growth is spurred on by the government’s Help to Buy scheme and the chronic lack of supply of good-quality housing stock, which mask underlying symptoms in the industry. I have made my views known on Help to Buy previously, an initiative that serves the demand side of the housing coin and creates winners and losers with resulting house price increases. My views are that other measures to cure the stricken housing market are needed.

Loans from £30,000 to £1,000,000 Rates from as little as 1% pcm* 1st, 2nd and 3rd Charge Bridging Loans Terms 1 - 24 months Nationwide lending Average turnaround 10 DAYS

These – among others – include: the government provides a planning policy that is fit for purpose, to ensure the right houses are built in the right places a review of the green belt policy

We are all in the same boat and at a time when business confidence is waning, and there is evidence of the flow of investment, labour and services being curtailed – meaning the desire for capital is dropping – we need the government to step in.

This could well be in the shape of major infrastructure projects such as rail, road and other civil engineering schemes to boost growth and employment and hopefully kick-start the industry.

a proper social housing policy to be implemented, enabling housing associations to build the social housing that this country needs.

In both the commercial and residential development sectors it is now time for the government to step up to the plate and jump-start the ailing patients.

kuflink.co.uk | 01474 33 44 88 *Subject to underwriting criteria Kuflink Bridging Ltd is authorised and regulated by the Financial Conduct Authority. (Ref No. 723495) Registered office: 12 Helmet Row, London EC1V 3QJ. Company Registration (No. 07889226) This advert is intended for intermediary use only Your property may be repossessed if you do not keep up with repayments

Business Product Innovation of the Year

OPINION & COMMENTARY

The future is digital Brokers applying for one of our portfolio

Alan Cleary Managing director Precise Mortgages

F

intech, robo-advice, digi-finance. It seems every week a new phrase is coined which reflects the financial market’s seemingly unstoppable march towards a more online future.

A major UK high street bank has recently announced it has launched the country’s first paperless mortgage. Only last year, two online mortgage brokerages said that customers could apply for a mortgage with them entirely online. Although it doesn’t feel that long ago when a fully automated mortgage application seemed like science-fiction, it now seems to be becoming a reality the industry can’t ignore.

Technological innovation is all around us and almost every type of financial activity is, or will be, affected. Constantly evolving technology is having a huge impact, creating new challenges but also bringing new opportunities. Every business needs to consider it as part of its long-term strategy.

Customers’ expectations are changing.

People now expect to be able to organise their lives online quickly and efficiently, whether doing their shopping, booking next year’s holiday or sorting out their banking. More people are now organising

54 | NACFB Magazine

their lives online and communicating via their phones and computers.

In today’s increasingly tech-driven world, those who ignore digital technology could find themselves struggling to retain existing customers or attract new business, while those who embrace it as an asset to their business – rather than view it as a threat – could thrive.

The mortgage industry is no different and the question we need to ask ourselves is how we can improve the customer experience through technology, but without removing the human aspect. It’s crucial that brokers are aware of the changes and challenges. Knowledge is power, as they say, and forward-thinking, open-minded brokers who move with the times will be well placed to make the most of the new opportunities.

Brokers applying for one of our landlord mortgages can enjoy the best of both worlds – some of the most up-to-date technology on the market backed up by reassuring human support, should they need a little more help.

As brokers and landlords now have to supply more information when applying for a mortgage, following the introduction of the PRA’s new underwriting rules for portfolio landlords, we’ve invested a lot of time and money in making the process as simple as possible. This includes designing a bespoke, in-house portfolio processing platform. Through this technology we’ve given our underwriters the ability to make a decision on applications quickly and efficiently, no matter what the size of the portfolio.

With customers looking for the right products and a fast service, new technology could be a game-changer for brokers. By helping them find the information they need quickly and easily, it can help them provide the service their customers need and expect.

The effects of digital technology on the mortgage industry are likely to be significant, but there are opportunities for lenders and brokers who are prepared to evolve and adapt to the changing market. By embracing new technology and making it as easy and convenient as possible to apply for a mortgage, lenders, customers and brokers will all benefit.

Here at Precise Mortgages, we’ve spent a lot of time and money in making applying for our range of mortgages and loans as simple and accessible as possible. Take our portfolio landlord lending process, for example.

After all, no one wants to be like Kodak, only watching as its competitors ate its lunch after failing to recognise that the future of photography was digital.

Online bridging valuations in an instant Our online Automated Valuations (AVMs) for Bridging Finance can be generated in an instant to help your customers seal the deal faster. At only £99 at the point of application, they could save money too.

Automated valuations available subject to criteria Quick decisions to meet tight transaction deadlines Dedicated underwriter from DIP to completion If you wish to discuss a case please contact our Intermediary Support Team for more information.

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0800 116 4385

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precisemortgages.co.uk

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Precise Mortgages is a trading name of Charter Court Financial Services Limited which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register Firm Reference Number 494549).

Registered in England and Wales (company number 06749498). Registered office: 2 Charter Court, Broadlands, Wolverhampton WV10 6TD.

01848 (1)

Technological innovation is all around us and almost every type of financial activity is, or will be, affected

OPINION & COMMENTARY

The future is digital Brokers applying for one of our portfolio

Alan Cleary Managing director Precise Mortgages

F

intech, robo-advice, digi-finance. It seems every week a new phrase is coined which reflects the financial market’s seemingly unstoppable march towards a more online future.

A major UK high street bank has recently announced it has launched the country’s first paperless mortgage. Only last year, two online mortgage brokerages said that customers could apply for a mortgage with them entirely online. Although it doesn’t feel that long ago when a fully automated mortgage application seemed like science-fiction, it now seems to be becoming a reality the industry can’t ignore.

Technological innovation is all around us and almost every type of financial activity is, or will be, affected. Constantly evolving technology is having a huge impact, creating new challenges but also bringing new opportunities. Every business needs to consider it as part of its long-term strategy.

Customers’ expectations are changing.

People now expect to be able to organise their lives online quickly and efficiently, whether doing their shopping, booking next year’s holiday or sorting out their banking. More people are now organising

54 | NACFB Magazine

their lives online and communicating via their phones and computers.

In today’s increasingly tech-driven world, those who ignore digital technology could find themselves struggling to retain existing customers or attract new business, while those who embrace it as an asset to their business – rather than view it as a threat – could thrive.

The mortgage industry is no different and the question we need to ask ourselves is how we can improve the customer experience through technology, but without removing the human aspect. It’s crucial that brokers are aware of the changes and challenges. Knowledge is power, as they say, and forward-thinking, open-minded brokers who move with the times will be well placed to make the most of the new opportunities.

Brokers applying for one of our landlord mortgages can enjoy the best of both worlds – some of the most up-to-date technology on the market backed up by reassuring human support, should they need a little more help.

As brokers and landlords now have to supply more information when applying for a mortgage, following the introduction of the PRA’s new underwriting rules for portfolio landlords, we’ve invested a lot of time and money in making the process as simple as possible. This includes designing a bespoke, in-house portfolio processing platform. Through this technology we’ve given our underwriters the ability to make a decision on applications quickly and efficiently, no matter what the size of the portfolio.

With customers looking for the right products and a fast service, new technology could be a game-changer for brokers. By helping them find the information they need quickly and easily, it can help them provide the service their customers need and expect.

The effects of digital technology on the mortgage industry are likely to be significant, but there are opportunities for lenders and brokers who are prepared to evolve and adapt to the changing market. By embracing new technology and making it as easy and convenient as possible to apply for a mortgage, lenders, customers and brokers will all benefit.

Here at Precise Mortgages, we’ve spent a lot of time and money in making applying for our range of mortgages and loans as simple and accessible as possible. Take our portfolio landlord lending process, for example.

After all, no one wants to be like Kodak, only watching as its competitors ate its lunch after failing to recognise that the future of photography was digital.

Online bridging valuations in an instant Our online Automated Valuations (AVMs) for Bridging Finance can be generated in an instant to help your customers seal the deal faster. At only £99 at the point of application, they could save money too.

Automated valuations available subject to criteria Quick decisions to meet tight transaction deadlines Dedicated underwriter from DIP to completion If you wish to discuss a case please contact our Intermediary Support Team for more information.

Call us

0800 116 4385

Visit us

precisemortgages.co.uk

Follow us

FOR INTERMEDIARY USE ONLY.

Precise Mortgages is a trading name of Charter Court Financial Services Limited which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register Firm Reference Number 494549).

Registered in England and Wales (company number 06749498). Registered office: 2 Charter Court, Broadlands, Wolverhampton WV10 6TD.

01848 (1)

Technological innovation is all around us and almost every type of financial activity is, or will be, affected

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