Issue 82 SEPTEMBER 2020
Broker COMMERCIAL
The award-winning magazine for the National Association of Commercial Finance Brokers
16 TAKING THE LEAD AGAIN
28 PERFORMANCE OVER ENDURANCE
Using the right products, services, and experiences to help clients through
Reframing post-COVID finance as a means to grow, not just survive
Out of office COVID accelerates workplace innovation
32 INVESTING IN THE RIGHT PEOPLE Rebuilding the workforce with the right recruitment strategy
46 AHEAD OF THE CURVE Should we be bracing for an upcoming complaints crisis?
Contents
In this September issue NACFB News
Special Features
4 6 8
22-23
10-11 12-14
Note from Norman Chambers Updates from the Association Note from headline sponsor, Lloyds Bank Industry news round-up Patron news
24-26 28-29 30-31 32-34 36
Allica Bank: Six ways to get back on track NACFB: We can work it out ThinCats: Performance above endurance SME Commissioner: Not worth the wait NatWest: Investing in people Roma Finance: Could we go again?
Industry Insight 38 40-41
42 44
YBS Commercial: Fortune favours the brave Ius Laboris: Employee power shift B-North: No competition, no progress Paragon Mortgages: Inducing recovery
Opinion & Commentary
16
46-47 48-49
Patron Profile
50-51
16-17
52
Channel Capital: Taking the lead
Compliance 18-19
54
Kind Consultancy: Bouncing back? Lendhub: Turn and face the strange 1pm plc: Light at the end of the tunnel? Listicle: Five ways to enrich your industry knowledge Five minutes with: Laura Mollett, Broker Relationship Manager, Wesleyan Bank
British Business Bank: Rising to the challenge
Further Information KIERAN JONES Editor & Feature Writer
33 Eastcheap | London | EC3M 1DT Kieran.Jones@nacfb.org.uk LAURA MILLS Graphic Designer
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NACFB: Post-regulatory authorisation
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Ask the Expert 20
22
38
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NACFB | 3
Welcome
Norman’s Note T
he future begins now. That future will be dramatically different, not only for governments and individuals but also for business and finance. The future economy, the future of jobs, education, finance, energy – indeed, the future of everything – have been titles of conferences and panel sessions at national and international levels for over half a decade. What COVID-19 has done is accelerate the disruption already heralded by the Fourth Industrial Revolution and demographic trends, and underscore the urgency required to address systemic vulnerabilities.
Norman Chambers Managing Director | NACFB
Whilst more than £52 billion of state-backed loans have been allocated, NACFB Members must now equip themselves for the future. A future that will entail rounds of refinancing on a hitherto unforeseen scale. To help better prepare Members and Patrons for the challenge, you should by now be aware that the Association has enhanced its online offering via nacfb.org. If you have not already logged into your new account and updated your profile, I would strongly encourage you to do so. The new site features directories of both Members and Patrons and it is essential that these are as accurate as they can be. The new site also features a brand-new learning management platform, which contains a vast array of training modules to enrich your industry knowledge. More benefits will be added to the site in the coming months as the Association looks to utilise technological advances to enhance the life cycle of a deal, seeking to complement – not replace – the vital role of the broker. In this issue, we explore the future of employment (p. 24). The fundamentals of work are changing. How, where, and why we work are being called into question. Do we work for a company? Or at a company? And how will the ways we work shape our industry? The challenge of Moving Britain Forward will depend largely on how we adapt to workplace challenges. Our economic survival is dependent upon keeping the wheels of industry turning and I am certain our growing community of finance professionals will remain by their clients at every step.
4 | NACFB
HELPING MID-SIZED BUSINESSES RISE TO THE CHALLENGE
CORONAVIRUS BUSINESS INTERRUPTION LOAN SCHEME CBILS loans from £1m-£5m Now open to new borrowers
As one of the first non-bank lenders approved by the British Business Bank to provide term loans through CBILS, we are opening the scheme to new borrowers. Mid-sized businesses impacted by coronavirus can now benefit from our bespoke funding solutions including government payment of the first 12 months’ interest plus legal and lender fees.
Funding for: • Working capital • Investment • Growth capital • Refinancing existing loans • Acquisitions (exc MBOs, MBIs) Find out more at thincats.com/businesses/cbils
Helping the mid-sized thrive The Coronavirus Business Interruption Loan Scheme (CBILS) is managed by the British Business Bank on behalf of, and with the financial backing of the Secretary of State for Business, Energy and Industrial Strategy (BEIS). Borrowers remain fully liable for the debt. Full details on CBILS and the list of participating CBILS lenders can be found at www. british-business-bank.co.uk. ThinCats is a trading name of the ThinCats Group, c/o ESF Capital Limited (Registered in England and Wales No. 09707863) 2nd Floor, Newlands House, 40 Berners Street, London W1T 3NA.
NACFB News
Association updates for September 2020
NACFB embraces digital solutions NACFB launches new website and online portal
NACFB to host second Virtual Expo next month
The NACFB has launched a new website and online portal to help prepare our growing membership of finance professionals for a more certain future.
Registration has now opened for the Association’s second Virtual Expo, to be hosted on Wednesday 28th October.
The Association has transferred both the existing personal details of individual Members and Patrons as well as their firms onto the new system, hosted on a new look website. To access this information, as well as enhanced benefits of membership, users will be required to login to their new account for the first time via nacfb.org. The simple three-step process has been sent to all active users who, once logged in, will be able to access the latest compliance documents as well as download full membership lists. The new site also features a brand-new learning management platform, which contains a vast array of training modules to enrich your industry knowledge. More benefits will be added to the site in the coming months as the Association looks to utilise technological advances to enhance the life cycle of a deal, seeking to complement – not replace – the vital role of the broker. If you have questions regarding accessing the new system or feedback on your membership, please contact admin@nacfb.org.uk or phone 020 7101 0359.
6 | NACFB
Following the success of the first Virtual Expo, held back in June, the NACFB is returning with an expanded online event this autumn – featuring more insight, a live expert panel session, and a wider range of content exclusive to attendees. Finance professionals will be able to access the event from 10.00am on Wednesday 28th October. Once live, you will be able to view – and engage with – an online panel session that assesses just how pivotal the commercial finance community will be in Moving Britain Forward. The Association will also be unveiling the shortlist for the first ever virtual NACFB Awards. The awards will seek to formally recognise those lenders that have supported the trade body’s Members throughout the pandemic. The Autumn Virtual Expo will be free to view, but require a password to enter, which will be sent on the morning of the event. Anyone can sign-up to attend by visiting commercialfinanceexpo.co.uk The Virtual Expo will help maintain momentum for the return of the physical Commercial Finance Expo which returns to Birmingham’s NEC on Wednesday 24th March 2021.
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Note from our Sponsor
Reasons to be optimistic
Andy Bishop UK Director, Commercial Broker Development Lloyds Banking Group
A
s I write this column, some lockdown measures are being eased meaning that certain retail and hospitality businesses can re-open. Also, over one million businesses have now received direct COVID-19 financial support with nearly £52 billion of funding made available across an ever-increasing number of funders. Life though is not back to what we used to call normal and I suspect never will be. It feels as though we are in the eye of the storm. Having navigated our way through the initial crisis, focus will soon be turning to business recovery as the initial positive impact of government and financial support measures start to tail off over the next six months. The coming months will undoubtedly be hugely challenging with many uncertainties remaining.
Opportunity That said, we have the benefit of time to plan (which we did not have at the outset of the crisis) and the certainty that SME businesses will need, more than ever, financial support to aid their recovery. Commercial finance brokers will have the opportunity to play a key role in supporting businesses to plot a course to revival. Whether that be the need for immediate working capital and asset funding, or longer-term restructuring and refinancing to ensure a sustainable financial model for the future. There will also be businesses out there who have weathered the storm well and are looking to expand or diversify now. 8 | NACFB
Learning We will all have missed something if we do not take the learning from recent weeks – the ability to work in an agile fashion and the capability to respond quickly. The learning is there for brokers and funders alike. We now understand much better just how challenged we can be even with a relatively short period of significant disruption. This will inform learning for the future in terms of businesses and their contingency planning; that is, contingency planning in the widest sense, from ‘Can we work from home?’ to ‘What reserves does a business have if the trading situation worsens quickly?’
Looking ahead Contact with clients is critical – understanding what they need and when should be at the forefront of the broker’s mind today, engaging with them to forward plan and not merely rely on ‘How it was before?’ Whilst history is a good reference point, for many businesses across many sectors, it is unlikely to define the future. It is good to see that many brokers are already very busy with business flows now increasing. Whilst all funders will exercise a sensible level of caution in these early days, we are seeing transaction agreements increasing as some confidence returns. We are here to help fund the future. We remain committed to working with brokers as we have done in the past and recognise the value that they bring to their clients. Equally we recognise that they have been through a difficult period, but that there is wider opportunity out there. It is a new path, and we are all feeling our way. For more information visit lloydsbank.com/businessintermediaries Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under Registration Number 119278.
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Industry News
Industry News 1. UK slumps into recession with massive Q2 slump
3. HMRC miscalculates coronavirus grants for self-employed
The Office for National Statistics has confirmed that UK GDP plunged by 21% between April and June, following a 2.2% fall in the first quarter of the year. However, all eyes will be on the figures for June which analysts hope will indicate an 8% rebound in activity. Philip Shaw, chief economist at Investec Bank, added that the figures from July “should contribute strongly to a material rebound in the third quarter.”
HMRC has admitted that over 16,000 grants given to the self-employed to help them through the coronavirus crisis were either too high or should not have been paid out at all. Integrated Dispute Resolutions, a legal services firm which highlighted the error, called on HMRC to be transparent about how much the errors have cost. A spokesperson for HMRC said: “The Self-Employment Income Support Scheme has been delivered at unprecedented pace and has protected the livelihoods of 2.7 million self-employed people in the UK.”
4. Two-in-five businesses expect to cut jobs
2 2. Construction sector takes largest number of Bounce Back Loans Data released from the British Business Bank shows the construction sector received the largest number of loans given under the Bounce Back Loans Scheme (BBLS) with 173,452 or 17% of all BBLS loans going to construction businesses. However, the volume of money given (£5.09 billion) was less than the wholesale and retail trade market which took £5.9 billion. The number of CBILS loans provided to the construction sector stands at 6,295, a total of £1.27 billion. Construction took 14% of all CBILS loans while the wholesale and retail trade market took 19%. 10 | NACFB
A survey by the ICAEW of 800 senior finance executives at UK companies found 40% expect to cut jobs in the next six months as a result of the coronavirus slowdown. One third had already cut jobs, with two-thirds of these saying the reason was due to a drop in demand and 59% said it was to increase efficiencies. Some 54% said their organisation had furloughed staff. Just over a quarter (28%) of respondents said their organisations were hiring, while 27% said their firms had a recruitment freeze.
5 5. Shortfall for commercial landlords could soon hit £3bn
4
Commercial property landlords could be out of pocket by £3 billion this month as tenants continue to withhold rent during the COVID-19 pandemic. Data from Remit Consulting shows that, 35 days after the collection date, commercial landlords have collected just 63.3% of the rent owed for the third quarter and 73.5% for the second quarter. Retail landlords are faring the worst, having collected just 50.5% and 57.2% respectively over those periods.
7. Brokers – the unsung heroes of SME finance
6 6. FSB urges councils to release £1.5bn in small business grants Local councils in England are being urged to distribute an estimated £1.5 billion in unspent small business grants by the Federation of Small Businesses (FSB), whose research reveals only 7% of all councils have issued 100% of the cash earmarked for the discretionary grant fund or the small business grants fund. “Every local authority will know that long before this crisis struck, small firms were already facing huge difficulties with major chains leaving high streets, rising business rates and soaring employment costs,” said the FSB’s national chair Mike Cherry.
Research from Aldermore Bank shows SMEs are expected to borrow £48.3 billion to help their businesses recover following COVID-19. The study also found that businesses accessing finance through a broker are more likely to use a diverse range of funding options. Tim Boag, group managing director, business finance, Aldermore, said: “Brokers are often the unsung heroes when it comes to SME finance. In the months ahead, they will be needed more than ever to help businesses secure the funding they need.”
7
8 8. FCA launches crackdown on rogue advisers The latest figures show that 107 financial advice firms are being investigated by the FCA as part of a sector-wide crackdown. The FCA has the power to launch investigations if it suspects misconduct, wants to change regulatory permissions or wishes to check that a firm is acting properly. The blitz of investigations suggests the FCA is ramping up pressure on financial advisers.
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NACFB | 11
Patron News
Patron News Nucleus: SMEs spending nearly £22k to fully reopen
iwoca raises £100m, urges extension of CBIL scheme
As businesses begin to reopen across the country, research from Nucleus Commercial Finance has revealed that SME owners are having to spend on average £21,830 to fully reopen, with over a fifth (21%) planning on using their personal savings to cover the costs.
iwoca has announced a £100 million raise to scale its CBILS offering and fund customers for the first time. The NACFB Patron has also shared its analysis of HM Treasury data, revealing that a gap between the number of CBILS applications and approvals has grown every week since the launch of Bounce Back Loans, rising from 40,560 in mid-May to 58,707.
This comes at a time when SMEs have already reported an average loss of £251,471 due to the impact of COVID-19, according to the NACFB Patron’s research. For businesses that have already reopened following lockdown, implementing new health and safety measures was the biggest cost factor (44%). This was followed by staff salaries (33%) and reconfiguring the layout of the space (26%). While the top three factors remained the same for businesses of all sizes, investing in new technology and introducing new contactless payment systems were noted as a much larger concern for medium-sized businesses (51-249 employees), standing at 28% and 22% respectively. Chirag Shah, CEO, Nucleus Commercial Finance, said: “We need to help SMEs not only survive the current pandemic, but thrive in the future. As such, we, as an industry, need to highlight the role that finance can play in the short-term, but also to support longer-term business goals and help them future-proof their business.” 12 | NACFB
iwoca say demand for CBILS has remained consistent over this period, with an average of 3,481 new weekly applications – one every three minutes. In the last week of available data, 3,729 new applications were submitted. iwoca CEO, Christoph Rieche, has also shared his view that it would be “very wrong” to close the government’s CBIL scheme this month, as currently planned: “Do small businesses need further support in accessing funding after September? The short answer is absolutely.” “Who believes that you can go back after the extent of this crisis to just normal commercial lending? You continue to need the support of reducing the potential downside risk of lenders. There’s going to be most likely some continued disruption, which as a commercial lender you’re very concerned about.”
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Patron News
Patron News KSEYE Capital reaches £100m active loan book milestone
Roma Finance strengthens team following record business levels
KSEYE Capital has announced it has reached a significant milestone, with its active loan book now exceeding the £100 million mark.
Roma Finance has announced the growth of the team and the end of furlough for its entire operational team following record business levels in 2020.
The NACFB Patron has completed over £300 million worth of bridging loans in its eight-year lending history. Key recent highlights include a £9 million facility secured against a portfolio of residential, commercial and mixed-use properties in London, which completed in just a few days, as well as a £4 million developer exit loan secured against a site in Bushey, Hertfordshire.
Nick Jones has now officially joined the NACFB Patron as commercial director, following a career at Together, and is currently embedding into the business, responsible for the overall commercial strategy, identifying opportunities, developing new products, and overseeing sales and marketing.
Over the last 12 months the company has invested significantly in the expansion of its team and the development of bespoke loan management software, both of which will improve the lending experience for borrowers and brokers and support the continued expansion of the business.
Marc Goldberg, commercial CEO at Together offered support and said: “Nick is a talented individual who is highly experienced and diligent. He made a significant impact for the business and was a strong positive influence on those around him. We will miss Nick and wish him every success for the future.”
Ross Turrell, head of sales at KSEYE, said: “We’ve built strong relationships with some excellent broker partners over the last 18 months and expanded the sales team at the back end of last year.”
At the same time, the final team members on furlough have returned to Roma as the Patron begins actively recruiting to continue to support its growing customer base. The returning team had been supported on full pay for over three and a half months. This is a celebratory moment as the operational team is united. Roma’s office premises have also now reopened, conforming to local lockdown restrictions and social distancing measures.
Adding: “We’ve also been fortunate enough to upsize two of our funding lines in the last few months, so we’ve been extremely busy supporting brokers and borrowers throughout the pandemic – whilst other lenders have retracted from the market.” 14 | NACFB
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Patron Profile
Taking the lead Using collective products, services and experiences to find a way Tony Smedley Head of SME Business Development Channel Capital
T
he impact of COVID-19 has forced various industries to restructure their business models in order to survive and achieve the potential of a sustainable future. Now, more than ever, SMEs need to be able to manage their working capital more robustly than before so that they can negotiate their way through the coming months of recovery and manage their business to an optimal level. The impact of COVID-19 has meant that many SMEs believe they will be out of business by the end of the summer. This shocking revelation proves that we all need to listen to SMEs and understand their current perspectives so we, as an industry overall, can better serve and assist them. We have spoken with clients and prospective clients both in the UK and the Netherlands and these are a selection of the concerns that they have raised. Some of our SMEs said that they are dealing with businesses that have taken advantage of the government-backed support schemes and are worried that Bounce Back Loans are disguising or hiding problems that will surface once the loan is due for repayment. Additionally, not knowing if a customer has taken advantage of this kind of funding also manifests itself as a ‘fear of the unknown’ and may even be a barrier to future trade. Moreover, many 16 | NACFB
SMEs are concerned about the impact on their traditional customer base, those previously good customers, who may now potentially default on orders that have been made. Coronavirus has cost the average SME in the UK over £11,000 from lost earnings, work, and loan repayments and with that we are seeing companies pivot their operations to adapt and make changes
“
Some of our SMEs said that they are dealing with businesses that have taken advantage of the government-backed support schemes and are worried that Bounce Back Loans are disguising or hiding problems that will surface once the loan is due for repayment
to benefit their employees and long-term business sustainability. We have seen microbreweries switch to producing hand sanitiser, fashion brands using ‘deadstock’ to create face masks, tech companies producing apps to help digitise processes whilst working from home and motorcycling accessory manufacturers turning to the production of face shields. This adaptability must be applauded however we must not forget that a change in business model brings with it the angst and uncertainty associated with delivering a new product or service to a new customer base. We at Channel and our sister business, Togather in Amsterdam, aim to provide SMEs with an overall approach to cashflow management. Alongside raising working capital from invoices, we provide additional support to ensure that the control of the influencers of good cashflow is achieved. Our platform allows our clients to obtain credit limits for new customers and check current ratings for existing customers, assessing if they are taking longer to pay. This helps them to decide how much product or service they should supply or in other words, how much credit they should afford to their individual customers. Each invoice is covered by credit insurance meaning that all undisputed invoices will be paid and any slow payers are efficiently managed and any claims on the credit insurance policy are administered to a successful outcome, all at no extra charge. We instil a disciplined approach to collecting outstanding invoice amounts by providing a digital and confidential credit control service that is produced with the client’s letterhead and branding, to ensure that the debtor is unaware of our involvement and continues to deal directly with the client for all business matters. Debtors pay to a trust account and the platform allows the business owner to
“
Coronavirus has cost the average SME in the UK over £11,000 from lost earnings, work, and loan repayments
view and understand the current state of the sales ledger with a dashboard providing key KPIs, access to sales ledger reporting and prompts to take action to promote the future payment of an invoice by a customer. We believe that the initial benefit provided by the release of working capital from the invoices should be consolidated with good credit management disciplines to ensure that the overall benefit continues to be experienced by the business. In summary, it is worth remembering that SMEs set up their businesses to deliver a service or manufacture a product. Many will not have even thought about how they would go about managing their way through the kind of difficulties we have endured so far in 2020. Therefore, it is up to us, as lenders and advisers to take the lead and talk with our clients and prospects to understand the issues they are facing and then use our collective products, services and experiences to help them through it. NACFB | 17
Compliance
Running a tight ship So, you are newly authorised – what’s next? Dean Williams Compliance Officer NACFB
A
s part of the NACFB’s drive to embrace the highest industry and regulatory standards, it has been pleasing to see a number of Members take advantage of the Association’s authorisation support service during these times of uncertainty. Here, we look at what comes next for firms, following authorisation being granted. Planning for and submitting an application to the FCA can be a daunting process but it is one many firms find more straightforward than anticipated; especially when the firm is already an NACFB Member operating to the Association’s Minimum Standards. Once regulatory approval has been granted, the next step is to bring to life your plans for maintaining regulatory standards and expectations, which can be an unsettling process, especially for smaller firms with a perceived lack of resource. To provide insight as to what is involved on an ongoing basis, below is a high-level summary of what a newly authorised firm is required to consider and plan for following authorisation.
What’s next? Having communicated your plans for meeting FCA regulatory rules and managing risks to both your customers and your business in your application, now is the time to ensure you bring those plans to life. It is best to establish your regulatory journey on a solid 18 | NACFB
foundation, ensuring you are always treating your customers fairly. The FCA is clear that the type of systems and controls that should be established for monitoring and ensuring compliance standards are maintained should reflect the nature, scale and complexity of a firm’s business activities and risks posed by the business to consumers. This plan should include coverage of all activities you undertake and the regulatory rules your firm is subject to. Where possible, you should always seek to evidence any compliance monitoring activities and take corrective actions immediately
“
It is best to establish your regulatory journey on a solid foundation, ensuring you are always treating your customers fairly
when any issues are identified. It is advisable that the results of your monitoring activities and corrective actions are discussed and minutes taken at appropriate management committees or meetings, which will act as evidence of your senior management commitment to the continuing fair treatment of customers.
Plan to succeed To ensure you and your team are suitably prepared for meeting regulatory standards, you should have established an appropriate annual training and competency plan, which should be aligned to your regulatory activities and business risks. For the benefit of Members, the NACFB has made available a new learning management platform. From here, modules can be tailored to your business’ specific needs, but some Member firms may choose to establish their own bespoke systems.
“ One of the most common reasons for public regulatory censure is firms’ inability or failure to report their regulatory data to the FCA as required
All firms are required to pay an annual fee to the regulator. Firms should be conscious that an element of your annual fee is based upon your regulatory income, so firms should have established appropriate systems to record different income streams and report the same. Regulated firms’ reporting schedules can be confirmed via the FCA’s reporting system, Gabriel, via the ‘View Schedule’ option when you log in. These reporting requirements should be incorporated into your annual compliance planning. One of the most common reasons for public regulatory censure is firms’ inability or failure to report their regulatory data to the FCA as required. To ensure you are not at risk of falling into this trap, following authorisation you should ensure that you have the ability, through record-keeping and reporting, to collate data for all regulatory returns, taking into account your different type of incomes. Complaints reporting is required either bi-annually or annually, depending on regulatory income. As above, this should be clarified via Gabriel. We encourage Members to view reporting requirements
before commencing regulated activity, to ensure your record-keeping systems are suitable to meet your reporting obligations. The FCA actively reviews and monitors data submitted by firms and the data is used to spot market trends and identify emerging risks and issues. It is important that your records are accurate and reflect the regulated activity you have undertaken during the reporting period. NACFB Member firms have access to the Association’s compliance team, who remain on hand for all compliance related queries. If you are not already authorised and would like to discuss the options available to you as an NACFB Member, including access to templates including customisable compliance monitoring plans, you can schedule a free consultation via compliance@nacfb.org.uk NACFB | 19
Ask the Expert
How the British Business Bank rose to the challenge
Q& A Patrick Magee Chief Commercial Officer British Business Bank
How has the role of the British Business Bank changed in 2020?
We are a government-owned business development bank, established in 2014 to help drive economic growth by making finance markets work better so smaller businesses across the UK can prosper and grow. This year’s coronavirus crisis expanded our role to directly support the government’s COVID-19 emergency response for small business, whereby the Bank set up, at pace, four different business loan schemes to provide finance to different types of businesses which to date totals almost £52 billion.
What were the first few months of coronavirus like at the Bank?
Like many organisations we had to manage the practicalities of operating in lockdown. Colleagues moved from our Sheffield and London offices to work remotely, with everyone doing their day jobs from home. Responding to COVID-19 then meant round the clock video conferences as we helped the government to deliver these loan schemes from scratch.
What challenges have you faced facilitating over one million loans to SMEs?
I think it was a challenge the Bank rose to, 20 | NACFB
but from a lending perspective, we had to set up a new accelerated system for our lender accreditation process. This enabled us to sign up over 145 lenders across three schemes. Those accredited include PRA-regulated banks, platform lenders, debt funds, invoice finance lenders, asset finance lenders and responsible finance lenders.
How have you seen commercial brokers play their part?
Some of the lenders on the scheme are dependent upon commercial brokers for the origination of loans, often serving businesses or sectors where access to finance might otherwise be more challenging. The pace and quantum of deployment of loans, asset and invoice finance through these lenders is a testimony to the role the brokers have played.
How has the Bank sought to combat fraudulent loan claims? We set up a weekly Fraud Prevention Collaboration Working Group co-hosted with UK Finance and Cifas, where accredited lenders share their experiences, discuss fraud levels, highlight best practice and explore industry-wide solutions.
Many SMEs will have borrowed for the very first time, do you think attitudes to finance will change?
These business loan schemes have given a lifeline to UK businesses helping them access essential capital. Businesses will be looking to see how the economy responds
and how they can keep trading. They will also be aware that they have taken on debt through these loans, and they are liable for repaying them.
How will we see the three main loan schemes evolve in the coming months?
Both the Coronavirus Business Interruption Loan Scheme (CBILS) and CLBILS will initially be open until 30th September, and the Bounce Back Loan Scheme (BBLS) will initially be open until 4th November. We are continuing to accredit new lenders who can offer loans to businesses under the schemes.
What refinancing challenges could be faced, and how can brokers help meet them?
There may be increased demand from businesses to refinance existing borrowing arrangements or support business investment through increased asset finance. Brokers can ensure that businesses are introduced to the right lenders to help them get the package of finance they need to ensure their continued and sustained viability.
Is the Bank now better prepared for future unforeseen economic crises?
The Bank has always had the ability to take on new responsibilities while enabling ever greater supply and diversity of finance. This crisis has shown we can support the government’s agenda and execute new programmes quickly and effectively.
Special Feature
Advertising Feature
Driving post-COVID SME success Uncovering six key factors to bring businesses back on track
Nick Baker Head of Intermediaries Allica Bank
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he demands being placed on the UK’s SME community right now would have been beyond comprehension just a few months ago. As the UK tries to pick itself back up from the COVID-19 pandemic, the expertise of the broker community is going to be vital in helping small businesses navigate their way through it.
To do so, Allica Bank partnered with the Centre for Economic & Business Research (CEBR) to survey over 1,000 SME owners about different aspects of their business. We then compared the results of the 100 most successful SMEs in the sample with the rest of the respondents and identified six common themes that the top-performing businesses demonstrated more than the others. As SMEs make their plans and prepare for whatever lays ahead, we thought it was critical that we shared our findings with you. The six rules for success we identified were: • Provide regular training for your staff; • Make time to focus on innovation and technology;
In fact, I do not think there has ever been a more important call to arms for the broker community to show their worth than now. The same goes for Allica Bank. We entered the market late last year with the mission to empower small businesses to succeed. Since then, we have had over £1 billion of enquiries for our commercial mortgages, with the large majority coming since the pandemic struck. I am proud that, by maintaining our lending appetite, we have managed to deliver for the broker community. And, earlier this year, launched SME savings accounts, too, to help SMEs make the most of their cash reserves.
• Have a formal, long-term vision (and don’t forget it); • Broaden your customer reach and find new markets; • Develop a reinvestment plan to strengthen your business; • Don’t be an introvert – look wider and understand the power of your network.
The six rules for SME success
Quite how individual businesses choose to interpret these rules will depend entirely on their own circumstances – there is no one size fits all when it comes to SMEs. However, these factors will be relevant to every business in one way or another and provide a useful external perspective.
However, as a bank, it is not just about the products we provide. We also want to help SMEs understand more broadly how they can ensure their success – all the more important in the unforgiving environment we find ourselves in now.
We also hope they will help brokers uncover other ways they can support their clients. Let’s take innovation, for example. There are hundreds of ways businesses can innovate. From restaurants launching delivery services, to manufacturers overhauling their
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We then compared the results of the 100 most successful SMEs in the sample with the rest of the respondents and identified six common themes that the top-performing businesses demonstrated more than the others
set-ups to make PPE. Either way, they will need the brokers’ expertise to find the funding to do it. Or when deciding how to reinvest company profits – a cause of great anxiety for many business owners. A broker’s expertise can be a vital and calming influence when developing a reinvestment or expansion plan. And perhaps most importantly, networking. Running a business can be a lonely experience. It’s tough for entrepreneurs taking on so much responsibility, often in areas they have had no exposure to before. Brokers can connect SME owners with a wide support network of local professionals that fill those gaps of expertise. We have gathered our research together into a short report – the SME Guide to Success – which expands on each rule in greater detail, each one backed up with actionable insight and practical solutions. We have also linked up with six external partners to host a series of webinars relating to each rule. Brokers are welcome to join, but we would especially encourage you to invite along your clients, too.
Rebuilding together The coming months are going to be tough for small businesses. Our SME Guide to Success is one way Allica Bank is trying to help them manage it, alongside continuing to develop our proposition to serve a wider range of borrowing needs. Top priority for me, though, will be collaborating with our broker partners to create an environment that is most conducive to helping SMEs achieve success.
We have already received incredible support from the broker community throughout this pandemic, for which I am extremely grateful. And I know that by continuing to work together we can do a great deal of good for small businesses in one of their times of greatest need. If you’d like to read more about the SME Guide to Success, or sign up to one of our webinars, visit allica.bank/sme-guideto-success. Alternatively, feel free to get in touch on 0330 094 5555 or by emailing introducers@allica.bank
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There are hundreds of ways businesses can innovate. From restaurants launching delivery services, to manufacturers overhauling their set-ups to make PPE. Either way, they will need the brokers’ expertise to find the funding to do it
NACFB | 23
Special Feature
We Can Work it Out Is the age of the office over? Norman Chambers Managing Director NACFB
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uesday. 6.30am. The alarm jolts you awake. You sit up in bed. The sigh. The shower. The checks – keys, phone, wallet. The rushed goodbye. The traffic. The crowded train. The arrival. The greetings. The coffee. The work. This may sound like discarded Paul McCartney lyrics from ‘A Day in the Life’, but for most, it forms part of a familiar weekday ritual – one that many of us have escaped this year. Now though, workplaces are beginning to reopen. Amidst the regional lockdowns – and at times confused messaging – one directive from No. 10 has been clear: we need to return to work. Office workers are being lured back into the cities, where they can spend their money and help to revive battered economies. But how many will return? And to what will they be returning? Has the national lockdown altered established working practices for good? And if so, what trade-offs can employees and employers expect as workplaces re-open?
Eight Days a Week The average British working week is the longest of any country in Europe. Approximately 22% of British employees work more than 48-hours in a single week. This may go some way towards explaining why UK office workers have returned to their desks at a much slower pace than staff in France, Germany, Italy, or Spain, as many of us continue to work from home. Only one-third (34%) of UK white-collar employees have gone back to the workplace, lagging far behind their European counterparts, where almost three-quarters of staff (68%) have done so, according to analysis from Morgan Stanley.
What has prompted such a cautious return to the office? Anecdotally at least, from the associates and partners with whom the NACFB has engaged, there seems to have been a collective reassessment of the viability of office-based workforces. Teams are adapting well to remote communication, with no demonstrable drop in productivity – in fact, full-time home working is estimated to raise productivity by more than 16 days over a calendar year. The question many are now asking is not when we should return to the office, but why?
Hard Day’s Night At the time of going to print, a total of 9.6 million jobs have been furloughed by 1.2 million employers at a cost of some £35 billion to the taxpayer. Figures released by HMRC have also revealed that just over 730,000 people have lost their job during lockdown – a number that is only set to rise as employees anxiously look to the end of the furlough scheme and the much-talked about onslaught of mass unemployment. The very concept of furlough was an alien one at the start of 2020, but those employees that fell into the government’s scheme are now presented with three options – each with their own set of difficulties. Furloughed employees will either return to the workplace, wait patiently and return once the scheme has ended, or face the very real prospect of redundancy. Commercial Broker spoke to one London-based events professional in her early thirties, who returned to work after a limited period on furlough. She outlined the psychological and fiscal toll of the experience: “…it was the months of not knowing, with no concrete updates – you hang on the every word of the little contact you have with your employer,” adding: “…financially you take a hit too, as you’ve still got bills to pay.” Other, less fortunate, furloughed workers include a 32-year-old Birmingham-based health and safety professional, who was initially placed on furlough and then informed his role was being made redundant four weeks later: “Our entire team found ourselves with no future in the company, thrown out into a job market where very few are hiring”. He added: “I’m now entirely dependent on my partner’s salary to meet mortgage payments.”
Employees that were not furloughed, and remained as part of remote teams, also face a unique set of challenges. They must seek to maintain a business in near-full operation, often relying on a skeletal staff to do so, performing repurposed roles and all whilst navigating the complexities of ‘survivors’ guilt’. Another worker likely to have seen their way of life completely altered is the self-employed freelancer. Over a quarter of a million self-employed workers returned to full-time employment between April and July, as the crisis dealt something of a crushing blow to the freelance dream. Andrew Chamberlain of the freelancer trade body IPSE said the “concerning decline” was bad news for the economy. The economic impact of coronavirus combined with government policies that favoured permanent employees has created “the perfect storm,” he said, adding that a “nimble and innovative” workforce could help the nation recover from the economic malaise. “We need these entrepreneurial workers to help companies grow and then leave early so businesses have funds to reinvest in themselves.” With the furlough scheme drawing to a close, businesses could soon be forced to offer unreasonable ultimatums to shielding workers. The NACFB believes that the job retention scheme should continue after October for those where working from home is not an option. This would positively impact SME owners and provide more breathing room for them to focus on rebuilding their customer base.
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Indeed, the very idea of employment could soon become far more conceptual: do we work at a company or for a company?
NACFB | 25
The Long and Winding Road Like many areas of our lives, the pandemic has accelerated working attitudes and technological developments by at least a decade. A trip to the NACFB’s head office in the heart of the City of London reveals a barren landscape. It is hard to distinguish when rush hour starts or ends anymore, with mainline stations unrecognisably sparse. In truth, we may never see a return to the pre-COVID hustle and bustle. Distinct working districts like the City, Old Street’s Silicon Roundabout and Chancery Lane’s legal centre may soon lose their geographical identity. Indeed, the very idea of employment could soon become far more conceptual: do we work at a company or for a company? How drastic the impact on city business districts will be is uncertain. Those in London, Birmingham, Manchester, and Leeds have been planned for decades on an assumption of rising office demand. LSE cities expert, Professor Tony Travers, says that for them “...it’s like death, too frightening to predict. But a conservative guess might be that half of workers opt for some form of remote working, perhaps for half their time”, equating to roughly a 25% cut in traditional office occupancy. Emptying city centres of a quarter of their office workers would be commercially devastating. It would wipe out the profit margins of the shops, cafés and pubs that depend on office footfall. Rents would plummet on newly emergent office blocks, lacking as they do the adaptability of the old Victorian streets they replace. Indistinct glass towers could blight townscapes as corporate dinosaurs. Whilst landlords looking to the long-term have allowed rental rebates to ensure tenants survive, this has not been the norm.
Come Together An August LinkedIn survey revealed people who work in the finance industry are the most likely to opt for an ongoing flexible working arrangement, with 25% saying they’d return to the office on a part-time basis, while 28% said they’d rather continue working remotely until they feel safer returning to the office. Many titans of Canary Wharf have told employees they can expect to return to offices in 2021; in a culture of globalisation, business trips abroad now seem entirely unnecessary. We will continue to value human contact with workplace friends, clients, and associates, but not 9-to-5, five days a week. This relentless treadmill was the ethos of a Dickensian factory – an industrial hangover that no longer befits 26 | NACFB
the times. But we must be careful what we wish for, and it is clear a balance must now be struck. If a company becomes too used to the idea of complete remote working, the next crisis could see waves of outsourcing further afield. For finance intermediaries, workplace innovations present several opportunities. A boom in logistics and haulage have seen a sharp demand in the need for asset finance, whilst cashflow and invoice financing have helped ailing SMEs secure critical funding lifelines. Brokers operating in the inner-city commercial property space face a tougher battle but there are opportunities here too, namely in the repurposing of office units to mixed-use residential or reimagined socially distanced workspaces. The pace of automation in some parts of the economy, like factory floors and warehouses, is now almost certain to accelerate, and there are asset and leasing opportunities here too. Brokers remain ever-adaptable and resourceful, for this is not the first crisis many will have weathered. The future morning routine for workers may contain far less steps, less rush, and less stress. Perhaps if the Beatles were to release ‘A Day in the Life’ post-COVID it would be a far shorter song. Regardless of how and where we work, the roles we undertake must be protected. Business owners must not overlook investment in people, and should now be planting trees whose shade they know they shall never sit.
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But we must be careful what we wish for, and it is clear a balance must now be struck. If a company becomes too used to the idea of complete remote working, the next crisis could see waves of outsourcing further afield
Not the end, nor the beginning of the end. In our 60 years of pioneering Asset Based Lending we’ve seen our share of ups and downs. As we all move to unlock we are still here and ready to help you and your clients come back stronger. Let’s talk: 0208 572 7474
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Special Feature
Funding to grow, not just survive Overseeing the transition from lockdown
Mike Hackett Head of Sales ThinCats
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s large parts of the UK economy have now emerged from pandemic-induced hibernation to take stock of the new post-lockdown reality, businesses’ needs for additional funding will be many and varied. The government has had to find a delicate balance that minimises the spread of COVID-19 whilst simultaneously minimising the economic impact. The economic challenge is to create an environment where consumers have the confidence to spend and businesses have the confidence to retain jobs and invest for the future.
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We are seeing increasing interest from businesses who have weathered the pandemic in better shape than expected and are now seeking funding for growth purposes
stimulus packages such as investment in infrastructure.
To achieve these aims, the Chancellor made a clear signal in his summer economic statement of a switch in strategy from providing ongoing direct support to businesses to focussing on stimulating economic activity. Temporary suspension of stamp duty on the first £500,000 of property purchases and targeted cuts in VAT to 5% for the hardest-hit sectors are examples.
From a funding perspective ThinCats has been providing CBILS loans to existing borrowers since May and extended the scheme to new borrowers in July.
Looking forward, the fact that most businesses have now started trading again means owners can more accurately assess the future viability of their businesses. Many will see demand substantially down from pre-COVID levels. Others, though, will see opportunities to expand especially those that may benefit from the government’s
• Closure of operations due to lockdown restrictions;
28 | NACFB
From our experience we see the most common funding needs are from businesses impacted by:
• Order shift or supply chain issues where orders have been postponed or there have been problems sourcing input materials;
• General fall in demand for products or services due to reduced economic activity;
future trading relationship with the EU. As we get closer to the end of year ‘deal or no deal’ target date, greater clarity on a new trading agreement would be welcome.
• Cashflow issues caused by delayed payments by debtors; • Businesses whose underlying model has been impacted and are looking to diversify revenue streams, e.g. investment in online distribution or by acquiring new businesses. Whilst many of the initial conversations with existing borrowers were about supporting them to ensure short-term survival, we are seeing increasing interest from businesses who have weathered the pandemic in better shape than expected and are now seeking funding for growth purposes. This includes funding for acquisitions where businesses can take advantage of the government’s payment of the first 12 months’ interest to enable the target acquisition to bed down without incurring any debt servicing costs. The main exclusion for acquisitions within CBILS is funding for MBOs and MBIs. Other than these, we continue to fund working capital, refinancing and growth capital proposals with the added benefit that the government will cover the lender’s fees and legal costs. The next few months will be critical. The government has signalled a shift from business support to economic stimulus. However, because the potential for economic growth is so contingent on containing the virus, the government cannot afford to take its eye off the health issues either. If the coronavirus can be contained with moderate increases in unemployment, we would expect the trend for funding requests to support growth to continue. If, however, more widespread lockdowns are required, there will be a return to more funding requests to support survival rather than expansion.
Given such high-levels of uncertainty, we believe that the government needs to continue to play a vital role in preventing a repeat of the liquidity problems caused by the 2008 financial crisis. So far, the government-backed loan schemes such as CBILS have been successful in stimulating lending to businesses and we would hope these are extended to at least the end of 2020.
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If the coronavirus can be contained with moderate increases in unemployment, we would expect the trend for funding requests to support growth to continue
Just as COVID-19 still lingers, so does the process of agreeing a NACFB | 29
Special Feature
Not worth the wait There are only ever really two times, now and too late
Philip King Interim Small Business Commissioner Small Business Commissioner
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OVID-19 has had a significant impact on the global economy as well as people’s health and livelihoods. At this time of national crisis many small businesses are worried about what the next few months will bring, including whether their invoices will be paid on time, if at all. A recent study carried out by the FSB revealed that 62% of all small businesses have experienced either an increase in late payments from customers (44%) and/or had their payments frozen completely (30%) as a result of COVID-19. These delays are unacceptable and large businesses need to understand the devastating effect this can have on businesses, even if the sum concerned is not very big by the standards of the larger company. For small businesses, cashflow is the difference between survival and failure, when the cash runs out, businesses collapse. While the banks and the budget have set out important action and relief, the reality for small firms is that short-term cashflow is still the most important thing. I have been dismayed to see large businesses delaying payment to smaller partners to ease pressure on their own cashflow during the current pandemic and although I understand we can’t just assume large businesses will have no cashflow management issues, and some may not physically have the cash to pay all their suppliers, it cannot be used an excuse to simply suspend or delay payment. Small businesses are vulnerable during this early period of recovery when cashflow will be at its tightest, and making payment promptly is vital for the immediate survival and future of small businesses. I have held conversations with the chief executives of several large businesses and as a result, they have prioritised payments to their smallest suppliers in full, or at least in part. I am working closely with the BEIS Secretary of State, Alok Sharma, and Small Business Minister, Paul Scully, and we are committed to ensuring businesses are behaving responsibly in the current climate. My office will continue to tackle late payment and bring about a culture change by highlighting poor payment practice and trends of non-payment within a number of sectors. I will use my powers to publicly name and shame large businesses who fail to pay their suppliers within agreed terms and we will remain committed to championing good practice by encouraging companies to sign-up to the Prompt Payment Code (PPC).
and good progress is being made on the policies announced in the Government Response to the 2018 Call for Evidence to assess what further steps and interventions are required to create a responsible payment culture. These include consulting on the merits of strengthening my existing powers to assist and advocate for small businesses in the area of late payments. Whilst COVID-19 has brought unprecedented disruption, it’s also prompted many organisations to take actions they have been putting off, from launching new digital services and evolving their business model to enabling greater flexible working. Small businesses are tenacious, and they have adapted their own unique skills to survive and help others in this crisis. They have found innovative ways to keep jobs open for their staff and serve their customers. As we move from crisis management to future planning COVID-19 is changing the face of business, industry and society, and businesses are inevitably transforming their organisations in response to new challenges and opportunities. My office has a 100% success rate in collecting payment for in-scope complaints and has collected over £7 million to date. I urge all small businesses that have outstanding invoices to contact my office, we provide a free service and can help through this difficult time.
“ 62% of all small businesses have experienced either an increase in late payments from customers (44%) and/or had their payments frozen completely (30%) as a result of COVID-19
The government is determined to see small businesses thrive and to fulfil its manifesto commitment to clampdown on late payment NACFB | 31
Special Feature
Investing in people How to start recruiting in the new normal Dave Furnival Head of Broker and Intermediary Development NatWest
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s the UK eases lockdown measures, we run through best practice on how the commercial finance community can recruit to meet its needs – while adhering to government guidelines.
The sourcing of talent Finding talent can be challenging for companies that have reshaped the way they operate. But there are ways to attract the best candidates. Rebecca Siciliano, MD, Tiger Recruitment says it’s vital to ensure that job adverts are well written and that they outline the organisation and what it offers. “Candidates will then do their own research, so make sure your company website and social media channels are up to date,” she says. “If you haven’t got a dedicated careers section on your website, set up a page on your site where potential employees can find out more about your business.” She also recommends thinking carefully about where you place adverts to reach your target applicants.
Your company image Emma Robinson, co-founder of Red Diamond Executive Headhunters, says it is crucial for businesses to have a strong presence online. “Social media is a fantastic way to engage with potential employees, with posts providing an opportunity for them to gain a clear picture of the tone of the business,” says Robinson. “But with each platform vastly differing in audience, it’s vital that 32 | NACFB
business owners understand the type of candidates they’re trying to attract, and which platform they’re most likely to find them on. For more senior level, corporate roles, for example, LinkedIn would be the most appropriate to focus on.”
The virtual interview While video interviews are trickier for candidates battling nerves and technology, interviews should be approached in the same way as the face-to-face equivalent, says Robinson. “This means being presentable, respectful, compassionate, and well-prepared. Making sure the candidate is comfortable can be facilitated by clear communication in advance, setting out exactly what will be required – including a good internet connection in a quiet space, with minimal distractions.” Ask whether they are happy
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If you are recruiting for a short-term or temporary role, it may be within the candidate’s contract that they can undertake additional work while on furlough, which is in line with furlough rules
using the platform you suggest – and make sure it won’t cut out after 40 minutes. James Didgiunaitis, director, Expion Search & Selection, says interviewers should prepare the flow of the interview and the questions in advance, but leave time for questions. “Remember that video calls are not the same as a face-to-face scenario and you need to allow breaks in your questions to allow the interviewee the opportunity to speak clearly, and make sure to give them the opportunity to finish before jumping in with the next question.”
Legal implications Ann Swain, CEO of APSCo (the Association of Professional Staffing Companies), says that regardless of whether an employee is on furlough, it is important to appreciate that employment law has not been suspended and that normal notice periods apply. And Didgiunaitis notes that while a candidate is on furlough – with associated contractual obligations – a candidate’s current employer may be happy to negotiate notice periods. “If you are recruiting for a short-term or temporary role, it may be within the candidate’s contract that they can undertake additional work while on furlough, which is in line with furlough rules, but this is only if they will be returning to work for their primary employer at some point in the future,” he says.
Application management Teams working remotely may mean applications take longer to process. Swain urges those recruiting to maintain contact with candidates. “Make sure candidates have multiple touch points to keep them engaged,” she says. “This could involve a home-based task as part of the interview process or a video meeting with a selection of other employees so they can ask questions about what it’s like to work for the company.” Charles Hipps, CEO and founder of Oleeo, says it’s important to be realistic with timescales and to be transparent. “Use automation
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Remember that video calls are not the same as a face-to-face scenario and you need to allow breaks in your questions to allow the interviewee the opportunity to speak clearly
as much as possible to help shortlist candidates against preferred criteria and create identifiers so that any top performers who you do not want to lose to competitors can still be nurtured,” he says. Remember that how your talent is treated throughout the recruitment process reflects how they will be treated as an employee, says Mandy Watson, founder and MD of Ambitions Personnel: “Ensure you manage expectations, and if your response times are longer than usual, be honest about it, and try to deliver information and updates on the dates you say you will. If you can’t, apologise.”
Embrace new working practices Many companies have successfully navigated their way through lockdown and have had to embrace working in new or different ways, says Michelle Dixon, senior employment law & HR consultant, NatWest Mentor. She says: “Where we used to find resistance from SMEs about homeworking and hiring part-timers, there has been a huge realisation that with the correct procedures in place this can be NACFB | 33
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Without the chance to connect in person, helping new staff feel like they belong to a team is crucial
Without the chance to connect in person, helping new staff feel like they belong to a team is crucial. Tools such as Slack and Trello can help to ensure that everyone is equally involved in team projects – but you should make sure new recruits have a chance to connect on a personal level. As well as scheduling non-work related team catch-ups and regular check-ins with managers, you could try implementing a buddy system, whereby you pair new staff with a member of their team at a similar seniority level for regular chats. This would give them the chance to create a one-on-one connection and informally find out more about their team.
Seeing the benefits an amazing and cost-efficient resource to the business, which is both great for the employee and for the employer.” She says there is a huge pool of untapped talent – people who want to work, but need to work flexibly to juggle family commitments – so it’s crucial to cast the recruiting net wide to ensure you get the largest audience and make it easier for them to apply by getting rid of unnecessary barriers.
Virtual onboarding Once someone has been recruited, not being able to see the building or meet colleagues can be intimidating. New starters may feel anxious due to worries about their health or job security, so regular check-ins and extra learning time are vital, says Siciliano. “Whoever leads the onboarding process – typically a member of HR or the line manager – will need to be quite hands-on during the first month as they’ll be busy facilitating regular video calls and training sessions. They should create a four-week agenda for the new starter to help structure the process.” Laptops and any other equipment needed should be organised, and sending a starter pack out can help the new employee feel excited and welcomed. “Typical contents include an agenda for the first month, your staff handbook, details of your HR policies, a personal welcome letter from the CEO or MD – even branded merchandise,” she says, adding: “Organising virtual coffee dates and team-building activities can go a long way to helping new starters familiarise themselves with your business.” 34 | NACFB
Paul Williams, director of Highstream Solutions, says the benefits outweighed the challenges when he used virtual recruitment. “We used Microsoft Teams to conduct our interviews and found that this in many ways levelled the playing field for candidates. More concentrated time is spent focussing on the questions in the interview, which means the entire experience as a whole is more focussed and informative.” “I found it much easier to draw things to a close on a virtual interview compared to your traditional, face-to-face interview,” he says. “Despite the candidate not sitting across the table from us, we still got a good indication of personality and professionalism, so the fact that the interview took place virtually had no bearings on the overall outcome.”
Through the NatWest Mentor service, we are offering access to MentorLive for free. This is an online compliance management system where you’ll find a range of employment law, HR and health & safety tools, templates, policies and guidance to support you in protecting your people and business from the effects of coronavirus. We can support you in managing jobs and the impact on your business operations and the health, safety and well-being of your people. Search NatWest MentorLive to find out more.
Supporting businesses through challenging times We have been working with a network of finance brokers for more than 30 years and are committed to supporting businesses through all economic cycles and that doesn’t stop today. Our Refinance solution gives businesses a quick way to access the value held in their existing assets when they need it the most. Allowing them to release this back into their business, easing the pressure on their cash flow. Speak to us today, we’re here to help.
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Special Feature
Could we do it all again? The best time to prepare for another crisis, is right after the last Nick Jones Commercial Director Roma Finance
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his year has been a shock to the system for the environment, the economy, health and education among many others and the situation is ever evolving. The only thing this year has provided consistently, is a steady stream of change and the question at the forefront of everyone’s mind is, what does the future hold? There is a long list of things finance businesses could do to prepare for the future but below are two key elements that can help intermediaries withstand another crisis.
Stay ahead of market opportunities There has been a steady stream of change with daily updates from the government, in multiple attempts to support the economy. One such change is the relaxation of rules regarding planning. The government has announced a consultation of planning to overhaul what they describe as a barrier to building the homes people need – cutting the red tape and creating a rules-based system. In addition to the consultation, as of the 1st of September 2020, use classes A1 (shops), A2 (financial professional), A3 (restaurant and cafés) and B1 (business) are being revoked and combined into a new class called Class E. This means the movement between any of those uses will not be restricted by planning. Furthermore, the government has laid out plans to extend permitted development rights for the conversion of commercial property into residential. These changes will quicken developments, conversions and refurbishments and are in direct response to the fact that more homes are needed, and commercial premises will likely have decreased demand with more people working from home. This newfound 36 | NACFB
property versatility may result in a variation in property prices but there will be more opportunities for investors.
Improve communication and relationships The sharing of knowledge is the latest trend in the industry – more businesspeople are taking to the likes of videos, webinars, and podcasts to share their 2020 experiences in a bid to give the market a flavour for success. The current time should be taken to reflect and learn from, to ensure decisions about the future will strengthen and develop. There will sadly be casualties from this pandemic. It is estimated that barely a third of lenders are lending at the moment, so now is the time to form and nurture relationships so you have support and options to seize new opportunities as they arise for you and your clients. Of course, the list is endless, but despite the first wave being over, some cities are still in lockdown to prevent a second and there is no promise of a return to normality anytime soon. The businesses who have embraced the new way of working and the opportunities of this counter-cyclical market will be those best placed to see success.
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The businesses who have embraced the new way of working and the opportunities of this counter-cyclical market will be those best placed to see success
Special Feature
Fortune favours the brave Now is not the time to withdraw – we must remain bold
Mike Davies Head of Business Development YBS Commercial
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t the time of writing this case study there have been two significant announcements which are going to affect the commercial property lending sector in the UK. The Bank of England is forecasting that the downturn triggered by the COVID lockdown may have ‘V-shaped’ recovery and the government has launched proposals to change the planning process in the UK to encourage more investment and building. In uncertain times where investors and lenders are looking for positive factors to base decisions on these announcements will be important influences for both. From a lender’s perspective, it is often less risky to reduce lending appetite and preserve capital when the economy suffers a downturn. I am not convinced that such a strategy would be in the best interests of lending institutions, their customers, or the wider economy in our current situation. The downturn caused by COVID is unusual, it is not linked either to a fall in asset values or a drying up of capital. We have not seen this sort of downturn before. Our current economic challenges have been caused by a single external factor which has damaged confidence. The essential underlying strength of the economy remains but is suffering from what amounts to an enforced pause in activity. So, the forecast from the Bank of England is timely and confirms that fundamentally the UK economy still has strengths and importantly the ability to recover more quickly than previously forecast. Combined with this the economic steps the government and Bank of England have taken are designed to support individuals and businesses and to create opportunities for growth. Supporting the property sector with public sector investment and regulation is a tool many governments have used historically to boost economic activity. While challenges will remain around factors such as reductions in property valuations, tenants’ ability to meet rents when due, and 38 | NACFB
specific sector risks, we are seeing the government willing to commit spending and policies to support the economy and a continued low interest rate environment to support investment. Here at YBS Commercial, we have continued to lend through the COVID lockdown. Our open for business approach has seen a record level of new business applications arrive with our lending teams. We have been supporting our customers with new lending and where necessary repayment holidays to support their cashflow positions. Our view is that while the current situation does present additional lending risks there are still sound opportunities to support investment in the commercial property and buy-to-let sectors. The commercial finance sector as a whole can play an important part in the wider economic recovery in the UK if we provide support for well thought through, prudent schemes. We are looking forward to working with our broker panel partners and customers to play our part in supporting our economy.
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From a lender’s perspective, it is often less risky to reduce lending appetite and preserve capital when the economy suffers a downturn
For your HMO or MUFB cases: • 1-6 bedrooms/units up to 75% LTV • 7-20 bedrooms/units up to 70% LTV • Unique ownership structures • No maximum loan size
InterBay it. This is just one example of the many challenging cases we're able to support. We use our experience and determination to shape bespoke solutions for our brokers and their clients. So let us go the extra mile and InterBay it. Visit interbay.co.uk for more information. For intermediaries only
Industry Insight
Employment in the post-COVID world A legal view on the future of the workplace James Davies Partner Ius Laboris – Lewis Silkin
in the UK’s furlough scheme on employers making redundancies (unlike other European jurisdictions). However, there are strict rules on consulting affected employees that employers should follow.
A safe return to work Madeleine Jephcott Managing Practice Development Lawyer Ius Laboris – Lewis Silkin
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mployers face many employment law challenges as restrictions ease in the UK and employees return to work.
On 20th March 2020, the government introduced the Coronavirus Job Retention Scheme to provide employers with support by paying a proportion of staff wages for furloughed employees. From July, employers have been able to bring employees back to work part-time under the flexible furlough scheme and so have more choice about how to manage the workforce as restrictions ease. Since August, employers have needed to fund an increasing proportion of the wage costs for staff on furlough. The scheme is now closed to employees who haven’t been furloughed before and will close entirely on 31st October 2020. The government intends to provide further financial support for employers in the form of a £1,000 job retention bonus for each employee brought back to work from furlough, payable in February 2021.
What happens when furlough ends? Many businesses have struggled to maintain revenue in the current economic climate. As the furlough scheme draws to an end, employers are assessing whether it is possible to bring employees back full-time or whether agreeing reduced hours and pay is possible. If redundancies are necessary, there are no restrictions 40 | NACFB
Government guidance states that businesses should make every reasonable effort to ensure their employees can work safely. From last month, this may include working from home, or within the workplace if COVID-19 secure guidelines are followed closely. All employers have statutory duties to provide a safe place of work and to prepare for reopening, employers must undertake a health and safety risk assessment and take action to minimise those risks. Many employers are actively considering extra precautions such as temperature checking or medical testing – but employers that do so will need to take account of their data protection obligations.
Who should return? While social distancing remains in place, a wholesale return to the workplace remains challenging. There are various options for employers to consider. These include: • Remain (mostly) closed with working from home continuing. Employers should take steps to protect their workforce’s mental health and deal with increasing requests for additional support with workplace equipment. • Re-open the office with optional attendance. This approach minimises possible employment claims and allows employers to test out proposed working practices. • Re-open with mandatory attendance. Employees may be unwilling or unable to return for a number of reasons. For example, where an employee has a particular vulnerability, is living with someone who is vulnerable, has caring responsibilities or relies on public transport. Employers should take individual circumstances into account when making decisions to minimise the risk of potential claims.
Employers should have robust processes in place to resolve any grievances and deal with any alleged breaches of the COVID-19 secure workplace guidelines by employers or colleagues. Employers can also expect an increased number of flexible working requests for (full or part-time) homeworking in the future, particularly where homeworking has worked well during lockdown.
A second wave Employers may be affected by local lockdowns in various ways, such as business closure, requiring employees to work from home again, travel restrictions and employee concerns about the risks of travelling to work. Some employers are considering changes to employment contracts to provide greater flexibility over the coming months.
The future workforce As a result of the pandemic, employers have had to rethink work, workplaces and their workforces. It has also amplified the role employers play in supporting the wellbeing and safety of their people. The extent to which an employer’s response to the crisis meets shifting employee and societal expectations around trust, inclusivity, wellbeing and social responsibility is likely to be of increasing focus and importance in the months and years ahead. COVID-19 will be the catalyst for many workplace changes and accelerate other drivers of change, with perhaps the most significant arising from increased automation including the rise in use of AI. You can find out more about the impact of these emerging trends on the world of work through Lewis Silkin’s Future of Work Hub initiative.
Look to the future with bridging finance With property investment opportunities currently wide open to investors and movers, bridging finance is ideal for being that one step ahead. Our fast, personalised approach to short-term bridging, can help to unlock finance with speed. We promise to approach each and every case purely on its merits, giving your situation the attention it deserves. Get in touch to find out more.
Visit us Give us a call westoneloans.co.uk 0333 123 4556
West One Loan Ltd is authorised and regulated by the Financial Conduct Authority. Firm Reference Number: 510024. Certain types of loans are not regulated, for example loans for business purposes or certain buy-to-lets. West One Loan Ltd is registered with the Information Commissioners Office. Registration Number: Z2651210. West One Loan Ltd is registered in England and Wales. Company Number: 05385677. Registered Office Address: 3rd Floor, Premiere House, Elstree Way, Borehamwood, Hertfordshire, WD6 1JH.
NACFB | 41
Special Industry Feature Insight
No competition, no progress The SME loans market thrives on competition Nancy Butler Commercial Director B-North
T
he importance of UK SMEs is no secret. SME’s account for 99.9% of the business population – some 5.9 million businesses – three-fifths of employment and half of all turnover in the UK’s private sector. They are the backbone of the UK economy and we should support them on their individual and unique journeys. SME success will play a critical role in the recovery of the UK economy after the destruction of COVID-19. Which will, in the long-term, drive further demand for lending and more competition in the market. However, brokers will need the support of new lenders to be able to fully-support SMEs. Businesses need loans. But in today’s market, they’re proving hard to come by. High street banks have restricted new lending to SMEs in a bid to tighten the purse strings. They’re in survival mode and funding new SMEs are considered a risk they aren’t willing to stomach. In turn, a lot of brokers are feeling the squeeze and are struggling to find appropriate finance solutions for their clients. It’s possibly more cost-effective for banks to lend to certain sectors, like buy-to-let landlords and for residential mortgages, but leaving SMEs out in the cold won’t solve the long-term economic issues the UK faces as a result of COVID and uncertainty of Brexit. Specialised challenger banks, meanwhile, see the lack of competition not as a warning, but as an opportunity to boost economic deprivation and get more SMEs back on their feet. Being built in this climate will allow them to be agile and offer what’s needed for SMEs to find their feet – and start to run toward success. Supporting the economic bounce-back requires challenger banks with 42 | NACFB
a willingness to lend, and flexible finance options that suit the unique and changing needs of SMEs. B-North, for one, has an in-depth understanding of SMEs and has built its business model around their needs. Fully-equipped regional pods combined with analytics software gives B-North a better understanding of businesses and risk, enabling the faster delivery of loans. Coming to market at a time when banks with limited front-line teams and centralised skills would rather stay well-away. Solutions like this make brokers’ lives much easier. The ability to fully understand risk profile and tailor finance solutions means brokers can service their clients effectively. Brokers who haven’t experienced working with challenger banks, new and old, should pay them due consideration so that they can service their SME clients in desperate need of funding. B-North will soon be working with brokers to assess individual businesses and build bespoke finance packages for them. It wants to see the SME sector be properly financed so the UK can not only recover from COVID-19 but continue to thrive.
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Specialised challenger banks, meanwhile, see the lack of competition not as a warning, but as an opportunity to boost economic deprivation and get more SMEs back on their feet
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Special Industry Feature Insight
Inducing recovery The implications of the Chancellor’s Summer Statement for buy-to-let landlords Moray Hulme Director of Sales Paragon Mortgages
Hamptons International has calculated that the average SDLT bill paid by buy-to-let investors across England will fall from £7,120 to £2,400, a reduction of 66%.
Green Homes Grants
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ack in July, Chancellor Rishi Sunak’s Summer Statement detailed measures to help the economy, with support for the housing market. Of interest to landlords will be a Stamp Duty Land Tax (SDLT) reduction and new Green Homes Grants.
Stamp Duty Land Tax From 8th July 2020 until 31st March 2021 home buyers purchasing a property up to £500,000 will pay no SDLT as a result of the threshold increasing from £125,000 to £500,000. For buy-to-let landlords, the 3% surcharge introduced in April 2016 remains, so whilst they will see their Stamp Duty bills reduced, it’s not as good news as for homebuyers. Previously, landlords would pay 3% SDLT up to £125,000 of the property’s value, 5% between £125,001 and £250,000 and 8% up to £925,000. Between now and 31st March next year, landlords will pay a flat 3% of the transaction value up to the £500,000 threshold. Our analysis shows that this will typically benefit those landlords in southern regions more as property prices are higher in those regions, particularly London and the South East. Prior to the Chancellor’s SDLT announcement, a landlord buying property in the North West at Paragon’s 2019 average property price of £170,191 would pay £6,009 in Stamp Duty. A landlord in London buying a property at the average price of £578,167 would pay £36,253. Following the Stamp Duty holiday, the North West landlord’s SDLT cost reduces to £5,105, with the London landlord’s tax bill falling by £15,000. 44 | NACFB
The Chancellor also unveiled a scheme to help improve the energy efficiency of homes and support the UK to become carbon neutral by 2050. The government will introduce a £2 billion Green Homes Grant, providing at least £2 for every £1 homeowners and landlords spend to make their homes more energy efficient, up to £5,000 per household. For those on the lowest incomes, the scheme will fully fund energy efficiency measures of up to £10,000 per household. In total, ministers say this could support over 100,000 green jobs, strengthening a supply chain vital for meeting our zero emissions target. The scheme aims to upgrade over 600,000 homes across England, saving households hundreds of pounds per year on their energy bills. The Green Homes Grant will cover a variety of energy saving home improvements. Owner occupiers and social or private landlords will be issued vouchers to install solid wall, under-floor, cavity wall or roof insulation, and air source or ground source heat pumps.
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Between now and 31st March next year, landlords will pay a flat 3% of the transaction value up to the £500,000 threshold
Broker Voice
Bouncing back? Bracing for an incoming complaints crisis
Lynsey Moore Managing Director Kind Consultancy
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n April of this year, as it was becoming clear how serious the COVID-19 pandemic was, the UK government moved quickly to take care of businesses by providing Bounce Back Loans (BBL) through accredited lenders – alongside the Coronavirus Business Interruption Loan Scheme (CBILS) and other initiatives. Each scheme had the shared aim of helping organisations survive the projected period of low customer activity and eventual recovery when it becomes possible to resume normal operation. Various commercial finance providers have also offered payment holidays on commercial mortgages and other pre-existing lending arrangements to ease the burden on their clients.
Breeding ground for complaints However, the reality of these offerings has not been smooth for everyone. There have been news reports predicting that up to half of the Bounce Back Loans may never be repaid, and while the government guarantee on the loans means there’s no credit risk, the prospect of having to pursue a huge number of small, failing businesses through the courts for repayments would be extremely complex and time consuming and could seriously damage the brand and reputation of many lenders. There are more immediate problems for some of the companies borrowing or looking to borrow as part of these schemes. The huge demand for Bounce Back Loans and emergency business loans has resulted in substantial delays to some businesses receiving the support they need, with the significant amount of admin created by each request quickly building up a backlog of work for providers. While lenders have been instructed not to perform credit checks on Bounce Back Loans, they are still carrying out viability and fraud screening and there is also the potential for issues around suitability judgements. This will also be an issue for non-government backed business loans, with some lenders advertising fast turnaround ‘emergency’ products of their own. A lender may reach the decision that the organisation that has applied for a loan will not be able to pay it back, and so deny their request, and in some cases that could mean a business going under. Those two things – businesses not being able to access the funds they need fast enough, or at all – are potentially going to lead to a surge in complaints to lenders from small businesses soon and with the Financial Ombudsman Service’s remit allowing
complaints from small to medium businesses since April 1st 2019, there will be significant pressure to handle complaints related to this appropriately. The Financial Ombudsman Service has set-up dedicated web pages for small businesses who have complaints arising from coronavirus, so this is an area they are anticipating being very active in the near future. The world of commercial lending may need to brace and appropriately prepare themselves for a spike in complaints activity like nothing they’ve ever seen before, and we can look to the situation in consumer lending as a bellwether for what’s to come.
Following the consumer space Kind Consultancy hosted a virtual roundtable with multiple consumer lenders in July and whilst at the beginning of the lockdown there were no significant increases in complaints in the consumer lending world, (in fact in some instances volumes had reduced) there was a major increase in calls and firms are beginning to see a steady rise in complaints, which could continue as the year goes on and the very unpredictable economic situation around a major pandemic plays out. One major concern is that people who are furloughed and making use of payment holidays may go on to lose their jobs leaving them unable to pay up when those holiday periods end. There are also questions to be asked about the availability of experienced complaints resource; with a coronavirus complaint crisis likely to explode in the consumer space first, specialist complaints talent may be quickly snapped up and locked down by consumer lending businesses, some of whom are more experienced in dealing with complaints rushes. Commercial lenders will need to stay ahead of the coming complaints-wave, investing in expert level complaints professionals – either building permanent teams right now or taking experienced complaints leaders on for an interim role as they train up permanent staff. Some organisations are hoping to shuffle around pre-existing staff but with the complex situation involving specialised, new products, there’s more chance that complaints handled haphazardly will end up going up to the Ombudsman service or regulators, at potentially greater cost to businesses. As well as being an NACFB Member, Kind Consultancy provide an executive search, headhunting and recruitment firm specialising in interim and permanent governance, risk, compliance and complaints positions across financial services and banking. With all the UK’s regulatory bodies currently focussing on how companies are treating customers during the pandemic, there’s a good chance that special attention will be paid to any complaints arising from this situation that are not handled properly, and novice complaint handlers could be completely out of their depth. NACFB | 47
Opinion
Turn and face the strange Time may change us, but we can’t trace time Gemma Palfreyman Head of Marketing and Communications Lendhub
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t is strange now to look back on those early days of lockdown. Our team have witnessed the previously bustling streets of London’s West End turn into an eerily quiet shadow of its former self. Lunchtimes that would typically involve battling crowds of tourists just to collect a sandwich, soon changed. The office was abuzz with talk of uncertainty and, of course, none of us could have predicted what did happen next. Fast forward to today, it has been over 175 days since the Lendhub team was last together in person, and in that time, we have all adapted to a new way of working whilst striving to give our brokers and borrowers the service and support they need in the unsettling environment we have all found ourselves in. Like many businesses, we have experienced problems that the lockdown has presented, but having previously invested heavily in technology, and only last year launched a contactless loan application portal we have managed to overcome many of the obstacles that have challenged us. The new normal for us, and I am sure many other companies, is a weekly team catch-up via video call. It was on a recent call that I asked one of our newest team members, our chief commercial officer Asim Shirwani, to share his lockdown experiences. “One of the best parts of lockdown for me was gaining time not commuting every working day and the trials and tribulations that come with using public transport in and out of London,” Asim said. “In many ways if you work in London it’s better to live well outside and get a train where you can get a seat and catch up on things. 48 | NACFB
Coming in from Surrey, I’m lucky if I can even get on a train. But the overarching benefit of this lockdown was spending more time with my kids.” Lendhub’s managing director, Christopher Adamou, also shared with me his lockdown experiences. “Taking some time away from the office has given me the time to focus and think more strategically about the direction of the business as well as enjoy some family time. Although as a business we were already set-up for remote working, the lockdown forced processes to become more streamlined and efficient,” he said. “Despite all the benefits of remote working, I miss the face-to-face interactions and collaborative office environment, so we will be looking at how to get the best of both worlds in the near future.” With the last quarter of the year nearly upon us, many businesses are planning their next steps towards normality. Having re-evaluated the standards that we lived by before lockdown, many will be finding ways to strike a better and more sensible balance, all whilst achieving the same end result. Afterall, who really wants things to go back to exactly the way they were?
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Afterall, who really wants things to go back to exactly the way they were?
Make your next Buy-to-Let faster By using Open Banking in the underwriting process, we can increase your client’s speed to offer in a secure way that reduces unnecessary paperwork. Property finance made simple
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Opinion
Light at the end of the tunnel Fuelling post-COVID asset opportunities Joe Ralphs Head of Soft Asset (Broker) 1pm plc
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here is no doubt that COVID-19 has changed the business landscape as we know it. Acting as a catalyst for innovation and change, businesses from all sectors and of all sizes have been forced to adapt to new ways of working. With near 25% of businesses ceasing trading altogether during this time, focus has remained on gaining as much financial aid as possible to stay afloat. Now, as we start to see light at the end of tunnel, SMEs are beginning to rebuild their businesses and bounce back onto the market (product-related pun not intended). In what has always been a fast-changing environment, now more than ever brokers and funders play a crucial role in both identifying ways in which the SME sector will continue to evolve and responding to these new opportunities together. Now is the time for innovation yes, but also collaboration and most importantly of service and credibility. Amidst what is still recognised as a cashflow crisis, the need to make sustainable and sensible investments will be key to SMEs across the UK. With almost two-thirds planning to invest in new equipment for their business over the next 12 months, there is a great opportunity for we as financiers to deliver tailored solutions. We need to take the time to listen to business owners and empower them to make investments that will support revenue growth. Understandably, businesses will be operating at different lifecycles over the coming months and it is crucial we acknowledge this. 50 | NACFB
For those who have recently reopened their doors to consumers, investing in assets that adhere to government guidelines will be at the forefront of their mind and there is great opportunity in this. Those pivoting in the face of adversity and diversifying their products and services will be looking to invest in new equipment that can support fundamental changes. There will also be those businesses who have already adapted so are looking to make investments that can generate new wealth, improve products or services, or enable new markets to be developed. Business owners in all stages of the lifecycle can look towards asset financing as the ideal funding solution in a post-COVID marketplace. 1pm’s recently launched ‘Low Start’ programme is a great example
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With almost two-thirds planning to invest in new equipment for their business over the next 12 months, there is a great opportunity for we as financiers to deliver tailored solutions
of how to offer enhanced flexibility and affordability through asset financing. Enabling business owners to obtain a lower starting option on their leased equipment, even more cash can be kept within the business. Coronavirus has thrown monumental challenges to every industry and there can be no doubt that its impact will be long lasting.
Despite this, we see potential for a business landscape that is full of opportunity and possibility. SMEs are clearly eager to emerge from this crisis and the evolution of businesses has been heartening. As SMEs continue to seek financial support to drive investment and move their businesses forward this is a new beginning for us; to deliver confidence and hope, and a customer service level unparalleled to what we have seen before.
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NACFB | 51
Listicle
Five ways to enhance your industry knowledge
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he NACFB’s new website (see p.6) features a brand-new learning management platform, which contains a vast array of training modules to enrich your industry knowledge. NACFB Members can now select from over 100 modules – each one counting towards your annual CPD requirement. The modules are designed for all levels of understanding, whether you’re just starting out and seeking to build a foundation of knowledge or if you’re a more experienced player looking to stay up to date, the platform caters for you.
4. Data Protection
The new training centre can be accessed via nacfb.org and we’ve highlighted just five modules that will ensure you’re up to speed.
5. Complaints Handling
1. Introduction to UK Financial Regulation Let’s start by getting the basics right. In a sector where new bodies and regulators are both emerging and merging, this course provides complete oversight of the regulatory environment in which we all operate. After identifying the two main UK financial regulators and their role, the module steps through the features of the UK regulatory cycle and helps distinguish between distinct categories of customers. Whilst not going into too much depth, this knowledge will underpin all further learning.
How we handle the information we obtain is as important as how we use it. Firms are getting increasingly caught out by legislation designed to protect our personal data. This module provides a solid overview of how to distinguish between non-personal, personal, and sensitive data. It will help you recognise how your firm complies with the GDPR and the UK DPA and help you take appropriate action to safeguard personal and special category data.
2. Consumer Credit Sourcebook (CONC) Arguably the most important framework for commercial brokers in the Consumer Credit Sourcebook (CONC). It’s a weighty tome but this module distils all the essentials, from recognising the purpose of the CONC Sourcebook to explaining what the CONC general conduct of business standards actually are. The course will step through pre-contractual requirements, tenets of responsible lending, as well as the procedures for dealing with arrears, default, and recovery.
3. Treating Customers Fairly (TCF) Above all, business customers expect financial services and products that meet their needs from firms they can trust. This trust must be earned and not assumed. The Treating Customers Fairly module will develop your understanding of what TCF means and – crucially – what it does not mean. The course then demonstrates how you can embed TCF in all aspects of your business whilst outlining what conduct risk is and how your firm should manage it.
52 | NACFB
Even the best run firms receive complaints, it is an unfortunate part of doing business. But how you respond – and record – complaints is what the regulator takes a keen interest in. The Complaints Handling course teaches you to recognise complaints and the importance of dealing with them appropriately. It shares who in your firm should know the procedure for handling complaints as well as the rules and etiquette for handling them, whilst helping you develop your understanding of the role of the Ombudsman.
Bridging Finance
Fast & flexible. We’re proud to be the safe pair of hands that will continue to support your business and the investor community with award-winning bridging & refurbishment products. Unregulated Bridging Loans from £50k to £15m Up to 75% LTV Terms to 24 months Minimum personal guarantee of 25% of the loan amount (available on non-refurb products only)
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Five Minutes With
Five Minutes with: Laura Mollett Laura Mollett Broker Relationship Manager Wesleyan Bank Describe your role in ten words or less? Varied, interesting, challenging, rewarding, hectic but wouldn’t change it.
How do you make a difference? I would like to think that I make a difference by forging strong relationships with brokers and working hard to be available to them and sensitive to their needs and the needs of their customers.
business for over 10 years in various roles, this is definitely the role I enjoy the most. I love building relationships with people. I’m also so proud of the Wesleyan Bank broker team for how far we have come in a short space of time.
In your view what are the key elements to a successful deal?
What advice do you have for the modern commercial finance broker?
A good credit proposal, open communication between us and the broker, and a mutual understanding of the outcome for the customer.
Embrace technology and change but remember to keep relationships and people at the core of your business. Be kind.
If you were to start your own small business, what would it sell?
What are the key elements to maintaining a strong lender/broker dynamic?
Away from asset finance, I’m on first name terms with the delivery driver for ASOS, so would probably be a clothing brand.
What recent professional accomplishment are you most proud of? Probably my transition to the Wesleyan Bank broker team. Having been with the 54 | NACFB
Communication and not being afraid to have honest, difficult conversations where necessary, and definitely dealing with integrity.
What changes do you hope to see in the new normal? A better work life balance. During the
lockdown I have been able to spend more time with family which I’d like to keep up and it’s also nice to not contend with the M25 on a regular basis!
What is the best live music experience you’ve ever had? I was once whipped in the face by Beyonce’s hair mid ‘Crazy in Love’ – that was pretty momentous!
Who do you admire most and why? There are lots of people I admire, female leaders, working parents, anyone who can overcome adversity and be happy, but most of all my mum who had three children under two and worked night shifts as a nurse!
If you could have dinner with anyone from history, who would it be and why? Stevie Wonder or Freddie Mercury, or both would be better, and I’d make them duet to ‘Living for the City’ whilst I ate a medium-rare fillet.
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YO U R T R U S T E D PA R T N E R Bridging Finance you can depend on Kerry understands that you are looking for a partner you can depend on to provide funding tailored to individual needs. Approachable | Adaptable | Knowledgeable
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