3 minute read
Hodge: Solid foundations
Solid foundations
In an uncertain world, a trusted lender is essential
Kevin Beevers Managing Director of Commercial Lending Hodge
After two years of using the word ‘unprecedented’ an unprecedented amount, it was starting to feel like we were heading back to steadier ground. But, with conflict in Ukraine, interest rates on the rise and inflation at a 30-year high, that steady ground is looking a little shaky.
When you’ve been in this industry as long as I have, times like these are certainly not unprecedented. History has a way of repeating itself – wars rage, rates rise, and 30-year highs come and go. But just because it’s happened before, doesn’t make planning for it or operating in it any easier.
Dealing with the pandemic was a different kettle of fish. With restrictions changing week-to-week and different rules applying to each part of the UK, there was a stretch of time where it felt like everything had ground to a halt. Of course, this wasn’t really the case and for many businesses – lenders, brokers, and clients alike – that pause gave space to reflect on where they’d been, plan for where they were going and evaluate what was needed to make positive gains when the play button was pushed.
That was certainly true for us at Hodge. Over the past few years we’ve continued to work with brokers as well as clients old and new, supporting them in the way we’ve always done, by looking for simple solutions to sometimes complex cases.
It’s also given us time to evaluate the markets we operate in to ensure the products we offer are right for the clients who need them. We’ve been able to spend more time listening than ever before, which has enabled us to adapt our product set in line with feedback from both clients and brokers.
To my mind, difficult and uncertain times make having a strong funder relationship more important than ever. The word trust is thrown around a lot these days, and rightly so. With trust comes open lines of communication, honesty and the opportunity to really understand what each party wants from the relationship. When those lines of communication are open, we can react to unforeseen bumps in the road and pivot if needed.
Hodge has been in the commercial and residential investment and development markets for more than 30 years, so we’ve seen a lot. Despite my youthful appearance, I’ve been in banking just as long and can confidently say, when the communication between lenders, brokers and clients is good, then all parties will prosper.
Things are unpredictable right now. Whatever path we were all on this time two years ago has undoubtedly changed. But even if the ground seems a little shakier than we’d all like, building a lender relationship with solid foundations will certainly stand you in good stead.
What is an LDS Sales Guarantee?
LDS Sales Guarantees unlock access to development finance by guaranteeing to acquire any unsold homes on an SME housebuilder site and releasing 10% deposit on exchange into development cashflow.
To find out how LDS Sales Guarantees transform the financial viability of development sites visit www.LDSyoursite.com
Benefits
Lenders
Development lenders benefit from a guaranteed exit from sites, which improves their risk profile and allows them to lend more to both new and existing SME clients.
Housebuilders
Better access to lending, plus the LDS cash deposit release allows SMEs to spread their upfront equity further, bringing forward more new projects and new homes than would have otherwise been possible.
Brokers
Brokers can increase conversion rates and increase fees by presenting their SME clients with a more competitive, lower risk, and smoothly executed finance package, that combines development finance with an LDS Sales Guarantee.
