Commercial Broker (NACFB Magazine) February 2022 by NACFB

Issue 97 FEBRUARY 2022

Broker COMMERCIAL

The award-winning magazine for the National Association of Commercial Finance Brokers

18 STANDING ON PRINCIPLE Implications of proposed improvements to the AR regime

32 SAY YOU WANT A REVOLUTION? The growing popularity and use of revolving credit lines

Breaking the chain Seeding fertile ground on the UKʼs high streets

38 JOURNEY TO THE NORTH SHORE A look at the commercial property roadmap for the year ahead

40 VISITING THE SME REPAIR SHOP A brokerʼs guide to understanding business credit ratings

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Contents

In this February issue NACFB News

Special Features

4 6 8

22-23 24-26 28 30-31

10-11 12-14

Note from Norman Chambers Updates from the Association Note from headline sponsor, Allica Bank Industry news round-up Membership news

32 34

Lloyds Bank: Still by your side NACFB: Breaking the chain Adsum: Advancing advances Cambridge & Counties Bank: An asset finance revival Tradeplus24: Say you want a revolution? Merchant Money: The power of partnerships

Industry Insight 36 38-39 40 42

UK Finance: Stop. Challenge. Protect. Matthews & Goodman: Journey to the north shore Lightbulb Credit: At the repair shop BloomSmith: Follow the money

Opinion & Commentary 44-45

46 48 50

Patron Profile

16-17

YouLend: Cashflow is king

Compliance Update 18-19

Mortgages for Business: The L-word NatWest: Green is the colour Paragon Bank: Moving the dial Begbies Traynor: Bounce Back Bungle Listicle: Top five broker survey takeaways Five minutes with: Louisa Sedgwick, Managing Director – Specialist Mortgages, Hampshire Trust Bank

NACFB: Standing on principle

National Farmers’ Union: What’s good for the goose?

Further Information KIERAN JONES Editor & Feature Writer

33 Eastcheap | London | EC3M 1DT Kieran.Jones@nacfb.org.uk JENNY BARRETT Communications Consultant

33 Eastcheap | London | EC3M 1DT Jenny.Barrett@nacfb.org.uk LAURA MILLS Graphic Designer

33 Eastcheap | London | EC3M 1DT Laura.Mills@nacfb.org.uk MAGAZINE ADVERTISING T 02071 010359

Magazine@nacfb.org.uk

Ask the Expert 20

MACKMAN Design & Production T 01787 388038

mackman.co.uk

NACFB | 3

Welcome

Norman’s Note

n this month’s cover feature, I take a good look at how the Great British high street is in the throes of transformation, overhauling its image, restocking its buildings, and lifting the shutters on a new era of both retail and community. Looking at business afresh, and creating new approaches will, undoubtedly, help the high street cast off its chains and emerge, vibrant, stylish, and more independent. You could say that, in part, it will resemble the high street of yore when we were a nation of proud shopkeepers. However, behind this soft-focus reminiscence, today you’ll find a self-appointed new model army of entrepreneurs determined to do things differently. Yes, they want to earn a decent living, make money even, but more than that, they want to capture that essence of community that provides for a better society. One that not only creates wealth but works to ensure that much of it is retained within the community that made it.

Norman Chambers Managing Director | NACFB

Of course, to succeed in their goals, this new breed of entrepreneur will need to access finance and that’s where the NACFB community comes in. For the most part, I believe the role we play is invaluable. We’re dedicated and not afraid to look at business afresh and create new approaches that have an impact at the coalface or on the bigger picture. Here at NACFB HQ for example, we are working behind the scenes to create a solution to counter the rising cost of Professional Indemnity Insurance (PII). And more than ever before we are using our voice, strengthening relationships with those who can effect change. But we can’t rest on our laurels. We can’t let the saying “we’re all in it together” dwindle to a measly platitude. It’s going to be another tough year but if we, as brokers and lenders, continue to strive in our endeavours to fund UK business, if we can look at business afresh and embrace new approaches, then the results will truly benefit communities the length and breadth of Britain and not end up as mere window dressing.

4 | NACFB

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NACFB News

Association updates for February 2022

NACFB News Events 2022: Dates for your diary

MAG meets to provide strategic steering

The team is busy planning and organising this yearʼs events and we can share the three main ones with you now.

In the first Members’ Advisory Group (MAG) meeting of 2022, the group reviewed the NACFB’s achievements last year including the work done to elevate the profile of commercial finance brokers to the government, particularly to HM Treasury and the British Business Bank. The MAG also considered the need for the industry to more widely accept electronic document signing and discussed the implications of the FCAʼs proposed changes to the Appointed Representatives regime. The MAG forms part of the NACFB’s wider internal restructuring and is designed to help steer the Association’s future direction, the group meets six times a year.

First, is the NACFB Commercial Finance Expo which is taking place on Wednesday 15th June 2022, at Birmingham’s NEC. Last year’s Expo was a resounding success with more than 130 exhibitor stands and an incredible 2,500 plus attendees passing through the registration desk. More details about the conference line-up will be announced nearer the time but if you are thinking of exhibiting this year, you can find out more by contacting the events team. Already stands are selling fast and we anticipate another bumper Expo. Recognising excellence within the intermediary community, this year’s Commercial Broker Awards is being held on Friday 23rd September, at Edgbaston Cricket Ground. Details of how Members can enter the awards will be sent out in the summer.

Commenting, Nicholas Murphy, who leads the group said: “The work undertaken is vital to make certain that the issues facing our Members are at the forefront of everything we do as an Association.”

The NACFB Patron Awards & Gala Dinner takes place on Thursday 24th November and will be held once again at the Westminster Park Plaza. Details of how Patrons can enter the awards will be available this summer.

Elsewhere, at the end of January, the executive board of NACFB Patron Cambridge & Counties Bank invited the Association’s Chair, Paul Goodman, to share market analysis. Paul provided an overview of the opportunities and threats facing the intermediary route to market beyond the pandemic’s peak. Paul also shared an update that outlined ongoing efforts of the NACFB to support both Members and Patrons.

Lastly, the team is working on some smaller, regional webinars as well as researching other flagship, in-person events. More information will follow in the coming weeks.

Paul said: “It was a privilege to share Member insight from the coalface and I will always welcome the opportunity to provide a similar overview to any NACFB Patron.”

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Note from our Sponsor

Are we finally getting back to growth? Our brokers seem to think so

Stephen Spinks Senior Business Development Manager Allica Bank

his year is looking like it will shape up a lot brighter for businesses than last year – according to Allica Bank’s latest broker survey, at least. Of the 164 brokers we polled in December, 85% said their SME customers were feeling confident about business growth in 2022, with a quarter of all surveyed saying they were feeling ‘very positive’. It comes on the back of a strong recovery in the SME sector, the extent of which took many by surprise. Over half of the brokers we surveyed said the SME sector recovered better than they had initially expected once most COVID restrictions were lifted last summer. Similarly, there is high confidence among our broker partners for 2022 even if new restrictions are put in place. 60% of respondents told us that Britain’s SMEs have ‘learned to live with COVID’, suggesting that the impact would be far less than what we saw in 2020 or 2021. Many of those we polled also pointed to those industries set to bounce back as reasons for businesses to be optimistic for the year ahead, like hospitality and tourism. I must say, it feels good to be positive again.

Getting back to business The outlook for brokers is similarly positive. After all, with growth ambitions comes the need for finance to fuel that growth. I predict a surge in businesses looking to release capital tied up in their existing properties this year to help them achieve those goals. 8 | NACFB

Lessons will also have been learned from the pandemic, and we may see many more businesses explore ways to diversify their income streams to protect themselves from future disruptions. Not wanting to be too stretched operationally, a more hands-off approach like investing in commercial property could continue to prove attractive. What’s more, the fact that many of the big banks have shied away from new lending magnifies this opportunity. Their appetite remains very cautious, with many still feeling the strain of CBILS and BBLS, and others choosing to reduce their exposure to certain sectors or geographies. This could result in an influx of customers in the market for a new lender, and many of them for the first time, too!

Stepping up to the plate The specialist experience and market knowledge of the broker community will therefore be in real demand this year. Allica has long championed the importance of this expertise in ensuring businesses bounce back from the pandemic sustainably and suitably – and this looks no truer than in 2022.

“

60% of respondents told us that Britain’s SMEs have ‘learned to live with COVID’, suggesting that the impact would be far less than what we saw in 2020 or 2021

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Industry News

Industry News 1. Banks lose guarantee on £240 million of COVID loans

3. Number of distressed businesses rises

5. Small business owners reveal wellbeing concerns

Lenders have found errors in their own pandemic loan scheme vetting systems, leading to the government removing the guarantee from more than 7,400 Bounce Back Loans worth more than £240 million. Former government minister, Lord Agnew, whose brief included counter-fraud, acknowledged that the BBL scheme had been an important intervention but slammed the government for its “woeful” efforts to control the risk of fraud. In an interview with the Times he said that the scheme “could be costing us hundreds of millions of pounds a month.”

The number of UK businesses reporting “significant financial distress” rose in the three months to 31st December to 589,168, a 5% increase from the quarter before, according to Begbies Traynor. Julie Palmer, a partner at the firm, said: “Businesses that have bravely battled through the pandemic could now start to fail as the pressures they face become too much.” Separately, the Insolvency Service has revealed that a record number of companies went into voluntary insolvency in England and Wales at the end of last year.

A study by webhosting firm GoDaddy shows that one in three small business owners in the retail sector say they are suffering poor mental health and wellbeing. The poll saw 29% of entrepreneurs in the entertainment and arts business say the same, as did 26% of IT and technology company owners and 28% of those in media and advertising. The analysis also found that on average, small business owners sleep just 6.3 hours a night, 1.3 hours less than the average person.

2 2. Two-thirds of SMEs without cyber insurance Cyber insurance is on the rise, but two-thirds of SMEs are still without cover, according to Aviva’s latest SME Pulse Survey. The survey also found that the number of SMEs with cyber cover grew to 42%, while more than a third (38%) plan to increase online sales. 38% said they were worried about the threat of cyberattacks. Fears around cyberattacks appear to be driven by experience, with 13% having suffered an attack and those who had experienced or knew of a cyberattack, 66% indicated it happened more than once. 10 | NACFB

4. High street vacancy rates fall in Q3 2021 The number of boarded-up shops on high streets and in shopping centres has fallen for the first time since the beginning of 2018 according to the Local Data Company. Analysis shows high street vacancy rates fell to 14.4% between October and December 2021, compared to 12% before the pandemic. Retail parks remain the most popular destination for shoppers, with an average vacancy rate of 11.3%. London has the lowest proportion of empty shops, with a vacancy rate of 11%, in contrast to the North East of England, where one in five shops is unoccupied.

6 6. UK factory costs rising at fastest pace since 1980

Cost pressures for manufacturers are rising at their fastest pace since 1980, the CBI has said, as output growth remains limited by bottlenecks and difficulties finding staff. The CBI warned that higher manufactured goods prices were inevitable. Rain Newton-Smith, the CBI’s chief economist, said government action was needed to ease cost pressures from spiralling energy bills and to encourage investment.

8. British Business Bank publishes updated list of company investments

7 7. Small firms optimistic but barriers to growth remain The latest Small Business Index report from the Federation of Small Businesses (FSB) has revealed that 54% of small businesses in the UK expect to grow over the next year. However, many are highlighting concerns over recruitment difficulties, inflationary pressures and tax rises in April. FSB national chair Mike Cherry said: “We urgently need the UK Government to start looking closely at the policies that will empower the small business community to spur our recovery from this recession as it did the last.”

The British Business Bank has added 108 companies in which the Bank’s Future Fund holds an equity stake, taking the total to 265 at the end of 2021. Launched on 20th May 2020, and open for applications until 31st January 2021, the Future Fund issued 1,190 companies with Convertible Loan Agreements worth £1.14 billion in total. Third-party investors were required to at least match the Future Fund’s investment. Companies in which Future Fund is now a shareholder include a number of technology and fintech businesses.

9. Apprenticeship levy needs tweaking to help SMEs Nearly half of firms subject to the apprenticeship levy have returned unspent funding to the Treasury according to a survey for the London First campaign. Although there is a clear appetite for recruiting apprentices, with 80% of businesses planning to hire at least one

in the next year, 48% of businesses had to return apprenticeship levy funding to the Treasury over difficulties in how the levy can be spent. Just under a quarter of businesses said they were unable to use any levy funding within their own organisation, while just 51% of firms transferred unspent funds within their supply chain.

10. FCA staff back industrial action Staff at the Financial Conduct Authority (FCA) have voted in favour of industrial action over proposed reforms to pay and working conditions. Staff are said to be unhappy about certain reforms that have been put forward as part of FCA chief executive Nikhil Rathi’s transformation plan. Among areas of contention are cuts to pension rights and the abolition of bonuses that union Unite says could lead to pay reductions of 10% to 12%. The union also said FCA staff had complained of an “unfair appraisal system” and pointed to “unusually high” levels of pay inequality at the regulator compared to other public watchdogs.

Membership News

Membership News UTBʼs property development loan book tops £1 billion

Allica Bank revamps commercial mortgage range

United Trust Bank’s property development loan book has exceeded £1 billion for the first time following a record year of new originations. The NACFB Patron recently expanded the division’s sales team to support housebuilders across England and Wales.

Allica Bank has revamped its commercial mortgage products, reducing interest rates and upping the maximum loan-to-value (LTV). Broker procuration fees have increased from 1% to 1.5% for owner-occupied, commercial, and semi-commercial investment mortgages.

Last year, UTB formed a number of strategic partnerships with government agencies designed to help housebuilders and developers gain access to competitive, higher geared funding.

The NACFB Patron has also applied a reduction of 0.25% to interest margins for all loans more than £1,500,000 on both commercial investment and commercial owner-occupied mortgages.

In February 2021 the Bank announced a five-year lending alliance with Homes England with the launch of the £250 million Housing Accelerator Fund to support SME housebuilders with development finance at up to 70% loan to gross development value. The fund provides construction loans between £1 million and £10 million.

Appetite for most trading property types has also been adjusted, with its maximum LTV for owner-occupied mortgages increased to 80%. This increase applies to loans secured on trading business premises, including children’s day nurseries, professional practices, and convenience stores. For owner-occupied commercial mortgages where clients can demonstrate two-times debt service cover, a maximum LTV of 80% on most property types will be considered.

In May 2021 UTB secured an ENABLE Build guarantee via the British Business Bank worth £250 million. The guarantee was the first to be issued under the new programme and will allow UTB to support the construction of over 2,700 units of new housing through the provision of more than £500 million of funding to housebuilders. Adam Bovington, head of property development commented: “Our aim this year is to further develop our compelling offering and assist the resurgence of the SME housebuilding sector.” 12 | NACFB

Allica Bank’s commercial and semi-commercial investment loans also now have a maximum LTV of 75% of vacant possession value across most property types. Nick Baker, managing director of intermediaries said that the input of its broker community was key to how the bank has developed its proposition: “We have a joint mission at Allica with our broker community to support as many SMEs as possible with the access to the finance they need to achieve their goals.”

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Membership News

Membership News Bank North commences lending in the North West

365 Business Finance secures £55m of funding

Bank North has commenced lending from its first regional pod in Manchester, hot on the heels of signing a debt facility with Insight Investment in December 2021. The £1 million loan has been used to refinance a South Manchester multi-tenanted industrial estate which is home to a variety of businesses, all playing their part in supporting a vibrant regional economy.

365 Business Finance has successfully completed a £55 million debt and equity raise, as the fintech lender aims to quadruple its lending to SMEs over the next two years.

This is the first loan delivered through the NACFB Patronʼs Manchester lending pod, where Bank North’s team of lending experts are now supporting business across the North West region. It was structured and delivered jointly by Michael Thompson and Darren Switzer, two highly experienced banking professionals. Commenting, Becky Owen, regional managing director at Bank North’s Manchester pod, said: “Our local pod team make a real difference in the marketplace adding value to lending requests and using local knowledge to provide tailored lending solutions to local SMEs and investors.” Bank North’s goal is to service SMEs looking to borrow between £500,000 – £5 million. Combining technology with face-to-face expertise, the Bank aims to bring empathy back to the lending market, whilst powering UK business by executing transactions locally, at pace and delivering finance which is tailored to the individual borrower’s requirements. 14 | NACFB

The London-based provider of revenue-based finance has already seen significant growth with demand more than doubling from pre-COVID levels. 365 Business Finance’s proprietary technology platform and automatic collections process have enabled it to maintain credit performance and reach record levels of origination. “Our innovative revenue-based finance product has proven ever more popular with small businesses, to the extent that we’ve been growing at a pace that far exceeds our pre-COVID levels,” said Andrew Raphaely. Commenting on the capital raise, Andrew Raphaely, managing director at the NACFB Patron said: “This raise will help us meet our goal of quadrupling our lending over the next two years.” The equity round saw Kendal Capital invest in the business, while the debt facility was concluded with Pollen Street Capital. Michael Katramados, of Pollen said: “We are delighted to build on our strong relationship with 365 and continue as their main funding partner as they embark on the next chapter of their growth. This facility aligns with our commitment to generating positive impact.”

Patron Profile

Cashflow is king Revenue-based finance solution to keep cashflow flowing Max Shave Partnership Manager YouLend

ore people than ever are starting a business and the shift towards e-commerce has also accelerated in the last two years. But it’s not without obstacles. The start-up boom has been challenged by cashflow issues, as SMEs struggle to cope with swings in consumer behaviour skewed by COVID-19, supply chain issues, and inflation.

and manage. This flexibility allows them to get the most out of their financing with limited effort. That’s why we developed an automatic system where repayments are subtracted as a percentage from earnings automatically, and what ends up in the business owner’s bank account is entirely theirs and available to use. Historically, SMEs have struggled to access finance for reasons such as limited cashflow, poor credit ratings and unfair repayment terms. Following the 2008 financial crisis, high street banks needed to lower their risk levels and shore up their capital. They did this by blocking-off some of their lending pipelines. Consequently, many banks could not invest in effective processes to accurately assess small business risk and therefore conduct lending activities.

Flexibility is important for SMEs

By relying exclusively on credit reports and traditional risk modelling techniques, many financing providers ignore some of the best risk predictors in an increasingly digital world. YouLend uses alternative data sources to generate deeper insights into the behaviour of our applicants, including revenue changes, social media presence and the volatility of customers’ perception of the business.

At YouLend, we provide a flexible revenue-based financing solution which allows business owners to repay as they earn. It’s a simple and transparent solution for SMEs that they can easily understand

Ultimately, we believe all companies should be looked at objectivity and therefore data plays a large role in our ability to give each business owner maximum funding.

Now, as we completely move away from coronavirus-related restrictions, SMEs will not only continue to rely on innovations that saw them through the pandemic, such as contactless payments and embedded finance, but they will also be drawn to crucial alternative sources of finance to support cashflow.

16 | NACFB

“

The current climate feels like the ideal petri dish to grow a cashflow disease

than weeks or months. At YouLend, businesses get an offer within 24 hours. We remove the hurdle of long processes and give SMEs a chance to focus on what really matters, their business. The quick access to funding and automated repayment mechanism allows SMEs to respond to bills, orders, marketing, or expansion opportunities quickly, often as quick as that very same day.

Lending through lockdown

Our credit risk modelling does not simply assess the probability of a business owner not repaying. Instead, we calculate the underlying risk of the business losing customers that drive their revenue. Our approach to data is rooted in sourcing a large range of non-correlated, quantitative inputs. In contrast, traditional lenders typically use two inputs: revenue and operating history. Our highly reliable credit risk system means we can provide funding options to new or asset-light businesses – traditionally an excluded section of the market, as well as allowing us to approve more businesses, faster.

Quick response Against the current market back drop, speed must play a big part in access to finance. The ongoing supply chain crisis and increasing inflation mean that small businesses need support in days rather

Our completely flexible and scalable platform meant that when COVID-19 hit, all our employees working from home were able to immediately pick up where they left off in the office, and so able to continue providing rapid access to funding throughout the multiple and varied lockdown measures. YouLend’s algorithms were able to successfully navigate complex and ever-changing lockdowns in 2020 and continue funding when traditional lenders stopped. Looking forward, surging energy prices and supply chain delays are still causing significant issues for businesses struggling with the aftermath of COVID-19. Combined with the looming rise of interest rates and worries about stagflation, the current climate feels like the ideal petri dish to grow a cashflow disease. SMEs are going to be looking for access to flexible, alternative lending solutions to see them through the turbulent future. Revenue-based financing can help SMEs sidestep cashflow challenges, ultimately plugging the cashflow gaps that are opening up through late payments. NACFB | 17

Compliance

Standing on principle Implications of proposed improvements to the Appointed Representatives regime

James Hinch Head of Compliance NACFB

ccording to HM Treasury, today there are around 40,000 Appointed Representatives (ARs) operating under around 3,600 principal firms. Most readers will know that an AR is a person or firm who carries out regulated activity without being directly authorised. Instead, authorisation rests with a ‘principal’ firm which accepts responsibility for the regulated activities undertaken by the AR. The AR regime has been a part of the financial services landscape for a long time. It was originally established in the 1980s for investment services activity but since the introduction of the Financial Services and Markets Act 2000, it has been adapted and applied to a much wider range of activities including networks. It appears that it is now time for these adaptations and applications to be tested, the trigger being a Treasury Select Committee (TSC) report which found that the AR regime might be being used “for purposes which are well beyond those for which is was originally designed.” Consequently, the TSC asked that the Financial Conduct Authority (FCA) and HM Treasury consider reforms to the regime which might limit its scope and reduce opportunities for the regime to be abused. So, at the end of last year, in parallel, both the FCA and HM Treasury published consultations. Each takes a slightly different angle: • The FCA’s “CP21/34: Improving the Appointed Representatives regime” consults on further rule changes it can make to improve principal oversight. • HM Treasury’s “The Appointed Representatives regime: Call for Evidence” seeks to gather information on how market participants use the regime, how effectively it works in practice, as well as potential challenges to the safe operation of the regime, and possible reforms. Having reviewed the FCA’s consultation, I want to share how some of the proposed changes may impact NACFB Members who are either principal firms or ARs. The FCA will require principal firms to provide more information on their ARs and prospective ARs including business model, revenue, and complaints data. Whilst most principles will (or should) already have a solid understanding of this information, most may not have been collecting it as part of their periodic AR reviews. For the principle, this will take more time, cost more money, and require extra resource to carry out. It does, however, seem that the FCA has listened to the market when it comes to a simplification of the rules. Proposed new

guidance is recommended on how to meet the FCA expectations in a practical way. This includes assessing the senior management within AR firms for how well they align with fitness and propriety and taking reasonable steps to ensure ARs act within the scope of their appointment. The detail is yet to be disclosed but the signs are encouraging that the regulator is providing such steps for firms to follow. Furthermore, the regulator is proposing further clarification of the definition of ‘adequate’ in relation to a principal’s controls, resources, and assessments. While the proposed changes are relatively small in their nature, with every change comes impact and some firms – both principals and ARs – will notice the impact of these changes more than others. Holistically the proposed changes may have some longer and larger consequences for principal firms and the AR framework. It’s not hard to work out that complying with the new rules and guidelines will increase principal firms’ operational costs. How they are accommodated, is another matter. It is likely that principals will either raise client fees/charges, or reduce the number of ARs in their network. Add into the mix, the recent introduction of AR and Introducer Appointed Representative (IAR) fees for principal firms, and we predict that most will choose to remove ARs from their networks. Interestingly, it seems from the consultation that this is exactly what the regulator is attempting to achieve – to see a reduction in the volumes of ARs in the market, leaving a smaller but arguably higher-calibre pool who pose less risk to the consumer. At a recent NACFB Members’ Advisory Group (MAG) meeting, attendees discussed the proposed changes and their likely impact. There was consensus that the changes would strengthen behaviours within the AR framework. However, it was agreed that the regulator also runs the risk of reducing both competition in the market and consumers’ choice of whole of market options. The FCA’s consultation is open to comments until 3rd March 2022 and the NACFB will be submitting a response. We will of course keep you abreast of developments. Similarly, HM Treasury’s consultation closes on the same day, and I will provide an overview of its proposals in a future issue of this magazine. In the meantime, if you have strong views on the AR regime, I urge you to read and participate in each consultation.

“

The regulator also runs the risk of reducing both competition in the market and consumers’ choice of whole of market options NACFB | 19

Ask the Expert

Whatʼs good for the goose?

A gander at the issues facing UK farmers

Rohit Kaushish Chief Economics Adviser National Farmers’ Union

Can you tell us a little about the NFU and its members?

The NFU represents more than 46,000 farming and growing businesses, from small family farms to large enterprises. Our purpose is to champion British food production, to campaign for a stable and sustainable future for British farmers and to secure the best possible deal for our members.

How many growers, livestock and mixed-holding farms in the UK are SMEs? Almost all businesses within the farming sector are classed as SMEs, so around 152,000.

How has the shortage of lorry drivers affected your members? The shortage of lorry drivers has been one of many issues causing disruption within the supply chain, with a recent cross-industry report showing an estimated 500,000 unfilled vacancies, from seasonal workers to processors. Alongside massive inflationary pressure as we see 20 | NACFB

fertiliser, feed and energy prices soar, the situation is becoming unsustainable for many farm businesses.

to understand the associated risks and rewards. Many of these markets are mostly dominated by smaller scale (often pilot) projects which may not be suitable for some farming systems. There is also a lack of standardisation in carbon calculators which makes it difficult to reliably measure, report and verify levels of sequestration and emissions. Therefore, it’s hard to know whether potential private agreements will stand up to long term scientific and social scrutiny.

What types of environmental private sector funding are most sought-after by your members?

Farmers have the potential to generate carbon, biodiversity and nutrient offsets which could attract investment from private sector businesses. This may include companies looking to use carbon offsets as part of their own net zero journeys or water companies and developers interested in nutrient or biodiversity offsetting. Such funding has the potential to support greater levels of environmental delivery on farms by providing the investment required to deliver nature-based solutions. Stacking of public and private revenues for nature-based solutions could help improve their long-term economic viability within productive farm businesses. This could become an important farm diversification stream, helping to build the resilience of farm businesses and support the transition to net zero.

What do your members see as the barriers to accessing private sector funding?

These markets are still in the early stage of development which makes it challenging

It is currently unclear how private sector funding will interact with the Environmental Land Management Scheme (ELMS) and if participation in private agreements may undermine farmers’ ability to engage with ELMS. Farm businesses must have confidence that any private sector funding is compatible with public sector funding, the farm’s own long-term net zero strategy and, crucially, food production.

What’s next for the NFU and its members?

As our members continue down the road to net zero, the NFU and farmers across the country will strive to play a central role in shaping these crucial developing markets to ensure their long-term success and compatibility with the farming landscape.

Asset Finance for Agriculture We take a personal approach to asset finance. All our agri division specialists have a passion for farming and helping SMEs to achieve their ambitions.

Products that power growth: • Hire Purchase • Leasing • Refinance • Dairy Cattle Finance and Refinance

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Special Feature

Advertising Feature

Still by your side Remaining committed to our intermediary partners Keith Softly Head of Commercial Banking Intermediaries Lloyds Bank

These changes will make us easier to do business with and help us to add more value.

To help support you, our sales teams are now set up as follows s we look ahead further into 2022, I wanted to write and thank you for the support and commitment you have shown Lloyds Bank in our capacity as NACFB headline sponsor.

There is no doubt that the past three years have presented a variety of new and unpredictable challenges and during this time the help and support you have given to clients has been fantastic. This era has defined how important the broker market is within both UK financial services and the broader economy, which is only reinforced by the year-on-year lending growth shown in the 2021 NACFB broker survey. I am delighted that the headline sponsorship will be passed from Lloyds Bank to Allica Bank who have shown a visible determination in supporting the NACFB and its Members. We will continue to support the NACFB, and we remain 100% committed to the future success of the market, which I hope will continue to go from strength to strength. Earlier this month, we introduced changes to how we support our brokers and deliver a more added value service. At the start of 2021, we brought together all intermediary teams across term lending, asset finance, invoice discounting, and card acquiring to make us more joined up and accessible. We are continuing to evolve this strategy and are moving away from a traditional regional coverage model and will be aligning our resources to the specialist sectors and products you support. Such changes will help us to prioritise the service, relationship, and value components of our proposition, which we know are extremely important to you all. We will still support all opportunities nationally but will leverage our specialist teams to ensure we are offering the most relevant solutions to you and your clients. 22 | NACFB

• Healthcare - Headed by Jennifer Scott – jennifer.scott@lloydsbanking.com • Real Estate - Headed by Carolyn Asplin – carolyn.asplin@lloydsbanking.com • Trading and Working Capital - Headed by David O’Hare – david.o’hare@lloydsbanking.com • Specialist Intermediaries (including Asset Finance and Card Acquiring) - Headed by Alan MacRae – alan.macrae@lloydsbankcf.co.uk • Intermediaries Direct - Headed by Martyn Gliddon – brokerdirect@lloydsbanking.com or telephone 0345 901 3121

If you have any questions, or opportunities you would like to discuss please get in touch. Lloyds Bank is proud to work with the NACFB and we are truly excited to see what the rest of this year brings! We wish you all a successful 2022 and are looking forward to working with you. Lloyds Bank Plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under Registration Number 119278. Calls may be monitored or recorded. Please note that any data sent via e-mail is not secure and could be read by others.

Working with Commercial Finance brokers

In a country that’s always changing, banks and brokers need to work together to help businesses grow. That’s why we offer the breadth of finance and level of service you and your clients can trust. lloydsbank.com/businessintermediaries

By the side of business

Special Feature

Breaking the chain Seeding fertile ground on the UK’s high streets

Subtitle

Norman Chambers Managing Director NACFB

his is not another article about the decline of the UK high street. They are ten a penny, cliché-ridden and can be relentlessly bleak to read. Instead, this is part-missive, part-love letter, and part-manifesto that champions the UK high street, recognising its place within our national psyche and celebrating the continued role it plays in sustaining small businesses.

No more nails The mid-sized market town of Bromsgrove in Worcestershire is, in many senses, unremarkable. Its relatively humble history is built upon the cloth, wrought iron, and nail production industries. More recently, a significant proportion of residents have plied their trade in the automotive sector, with the town among the worst impacted by the collapse of MG Rover in 2005. Running through the heart of the town is its high street. At the time of the Rover collapse it was a thriving and bustling – if indistinct – commercial corridor; lined with all manner of familiar frontages. Woolworths, Mothercare, WH Smith, Blockbuster Video, Burton Menswear, Dorothy Perkins, and New Look. Whilst these chain stores brought with them increased footfall and relative choice, independent business were squeezed out through a combination of rising rents and an inability to price match. The last ten years have seen many of the familiar chain stores withdraw from provincial and inner-city high streets, as they themselves battled rising e-commerce giants and changes in consumer shopping habits. In truth, it’s hard to be nostalgic in their wake for, whilst they employed local people, the profits they turned were never spent in the locale. Today, Bromsgrove’s high street shows no sign of its nail-making heritage, but there are two independent nail bars, lining fingers with fresh colour and acrylics. The old Our Price record store is now a popular independent coffee shop, and even the Post Office has been converted into a quirky public house. Slowly, long dormant and empty units are being reclaimed, Bromsgrove’s high street is reinventing itself, marking a slow but steady return to its original market town heritage. Although patchy, this quiet revolution is in the process of happening in towns and villages across the country, and with the right backing and shared expertise of the NACFB’s Members, this fertile ground for SMEs can begin to flourish once more.

Lifting the shutters

retail, and the problems caused by social distancing are significant factors impacting their ability to thrive. But the pandemic has also presented an opportunity to rebuild in a new way. We all bore witness to a resurgence of community spirit, a renewed connection with local areas, and a growing recognition that communities need to play a central role in shaping their town centres and high streets to meet each neighbourhood’s needs. As such, the aftermath of the pandemic is an important moment to reflect on established practices. We emerge into an environment that only recently was seeing nearly 50 chain stores a day close. According to the Local Data Company (LDC) on behalf of accountancy firm PwC, city centres have suffered the worst, while retail parks are faring marginally better. The LDC tracked more than 200,000 stores operated by businesses with more than five outlets across the UK. These include everything from retail and restaurants, to cafes, banks, and gyms. Although 3,488 stores opened in the first six months of 2021 the number of closures was far greater. A total of 8,739 shops shut creating a net decline of 5,251 outlets – a huge number, but 750 less than in 2020. Just like in Bromsgrove, the removal of chain stores from the high street equation leaves a void, waiting to be filled by incumbent business owners, enticed by cheaper commercial rents. More and more independent retailers and food outlets are stepping into the gaps left by chains, driving the first rise in their numbers in four years. LDC’s data reveals a net total of 804 locally run convenience stores, barbers, bakers, cafes, and fast-food joints opened in the first half of 2021, bucking the trend of their chain counterparts. Independent business owners have benefited from government support measures, such as business rates relief, which have enabled them to remain open and capitalise on cheaper rent deals from landlords as their bigger rivals stumbled. Perhaps most tellingly, approximately half the Topshop stores relet since the fashion chain exited the high street a year ago have gone to independent operators.

Community impact lending Another clear trend has been both the emergence and rise of community businesses. A community business is set up and run by the community in a particular place, to address local challenges and deliver positive impact. Any profits generated are reinvested locally. Community businesses, as defined by charitable trust Power to

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Half the Topshop stores relet since the fashion chain exited the high street a year ago have gone to independent operators

We are living through a critical moment for the nation’s high streets. The rise of out-of-town shopping centres, the growth of online NACFB | 25

Special Feature

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We all bore witness to a resurgence of community spirit, a renewed connection with local areas, and a growing recognition that communities need to play a central role in shaping their town centres

Change, have four key characteristics: they are locally rooted; they are accountable to the local community; they trade for the benefit of the local community; and they have a broad community impact. The number of community businesses has been growing, with many in high street locations. Power to Change’s 2021 Community Business Market Report revealed that the median total annual income of community businesses increased to £130,000 last year – an increase of some £20,000. The report also showed that these businesses had responded well to the pandemic by evolving their services to meet their community’s needs: three-quarters (76%) now offer more than one service to their community – a rise of 13%.

Benefiting everyone There are thousands of high streets like Bromsgrove’s in the UK. To preserve the Great British high street for future generations, landlords, tenants, and lenders may need to share the risk and reward of being on the high street together, with rent tied to business performance, alongside credit scoring using new data sets and analytics to track and forecast returns for everyone.

Community businesses make positive impacts in their community and exist to help make places better, but they still require funding. The NACFB has seen several prominent lenders develop social impact arms or, indeed, a growing cohort of dedicated community impact lenders.

Innovation can boom as we enter a new era of connected commerce and communities full of enabling technologies that improve the high street customer experience or the performance of businesses trading on it. Plans must be put in place to empower each high street to embrace dynamic and data-driven plans with the optimal mix of retail, residential, and other commercial uses to sustain productivity over time. This must include the repurposing of units, greater flexibility built into lease agreements, an evolution of planning laws, and greater support from local authorities.

The pandemic caused a marked increase in demand for the services of community businesses, particularly for those providing wellbeing services. Three quarters (75%) of community businesses offering food provision saw demand rise: 80% saw a rise in demand for their financial advice, 78% for their health and social care services and 88% for mental health support. Two-thirds (66%) of community businesses now expect to develop new partnerships or collaborations in the coming year to deliver goods and services and the potential to tie-up with other likeminded local enterprises presents myriad opportunities.

A thriving high street benefits everyone. The gaps left by national chains reducing their footprint or disappearing altogether must be filled by new start-ups, local independents, and growing brands. Carefully positioning these enterprises in the right locations to address unmet consumer needs and proactively supporting through targeted growth financing – via NACFB Members – can help them achieve their potential. Perhaps, in time, we shall be witnessing the high street’s Renaissance as historic market towns, like Bromsgrove, across the UK once again welcome residents to a central commercial hub.

26 | NACFB

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Product and criteria information correct at time of print (24/01/2022)

Special Feature

Advancing advances VAT funding powered by technology Mike Underwood Head of Origination Adsum

AT funding or VAT loans on large asset acquisitions, mainly commercial property, is still a relatively new type of product in the alternative finance sector, but one that is an essential part of any commercial broker’s kitbag. As the products and processes start to mature, we are starting to see the implementation and roll out of new technology to make the borrowing experience, for both client and broker become a lot quicker and easier. Pre-2018, most VAT funding was done where applicable by the high street banks and senior debt providers. However, as LTVs started to constrict, and lending criteria tightened, more and more clients via their brokers, were looking for an alternative solution to fund that additional 20% payable upon practical completion, without tying up available liquidity or capital at HMRC. This gave rise to specialist VAT funders who would not only fund the VAT but liaise with HMRC to chase, and ultimately recover the loan. From my own experience, in the early days, I know this was very much done by Excel spreadsheets, scanned passports, and 20-plus page facility agreements. All of this added to the administrative burden, required the clients to provide large application fees to be paid upfront, slowed down underwriting and, ultimately, added cost to the deal. There is no doubt that technology can and is helping the alternative finance sector, and we are also now seeing these advancements in the VAT funding space. There will always be ‘old-school’ lenders, armed with a spreadsheet and a black book of contacts but today’s 28 | NACFB

clients are now expecting better levels of service, competitive pricing and utilising the technology that everybody has in their pockets these days. An example of this is evident here at Adsum. Using our proprietary technology, the client, once terms are agreed, goes through an onboarding process online, utilising their mobile phone for KYC/AML, signing agreements, and uploading relevant tax documents. Gone are the days of printing out 20 pages of legal text just to sign the last one, scan them all, and email back! The platform gives a completely transparent process available to the client, broker, accountant, and solicitor, so all parties can track the progress of the deal. It is because of these advances we can remove the need for clients to pay a fee upfront, trusting our technology to help the client get the loan drawn down smoothly and quickly. With Making Tax Digital (MTD) becoming more and more relevant, embedding VAT funding into this process is a natural progression for tech-based funders. I have always advocated that technology is only useful if it solves a problem, and making VAT loans quicker, easier, and cheaper for the clients seems a good starting point.

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There will always be ‘old-school’ lenders, armed with a spreadsheet and a black book of contacts

Special Feature

Forward momentum New opportunities and a drive in demand Simon Hilyer Head of Asset Finance Cambridge & Counties Bank

he past two years have been very difficult for many UK businesses, impacted on all fronts by COVID-19 as well as the broader economic environment; with the uncertainty over Brexit causing significant disruption to normal working business practices, employees, customer demand, and investment. With the Omicron variant potentially pausing the recovery, the challenges have not gone away. However, there is an expectation that 2022 will see a strong economic bounce back. Our discussions with commercial brokers and clients underscore a more positive, bullish sentiment with many SMEs and businesses that have paused investment now focused on growth. How businesses finance this investment and capitalise will be key. Asset finance has remained a highly competitive, efficient means for firms to 30 | NACFB

meet opportunities, build inventory, and to better position themselves for a more dynamic environment. As such, we firmly believe asset finance will be key for many businesses in a post-COVID world.

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Asset finance has remained a highly competitive, efficient means for firms to meet opportunities, build inventory, and to better position themselves for a more dynamic environment

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Cambridge & Counties Bank saw significant asset finance volume in FY2020, despite the impact of the pandemic

Working closely with brokers, we know that credit lines can be an appropriate, cost-effective solution for many businesses, helping to fund expansion plans or to release finance locked into fixed assets, providing a cashflow injection among other benefits. Asset finance has historically helped SMEs invest in business-critical assets such as vehicles, construction equipment, plant and machinery, cranes, and computer numerical control (CNC) machinery. The relatively recent boom in hybrid and pure electric vehicles (HEVs and PEVs) has opened new opportunities and demand drivers.

According to data from the Finance & Leasing Association, total asset finance new business in the ten months to October 2021 was 17% higher than in the same period in 2020. The plant and machinery finance sector reported new business up in October by 9% compared with the same month in 2020. Cambridge & Counties Bank saw significant asset finance volume in FY2020, despite the impact of the pandemic. The Bank also provides finance for the purchase of classic cars through competitive finance solutions.

To support UK businesses to transition to electric vehicles, Cambridge & Counties Bank began including PEVs as part of its highly competitive lending strategy and asset finance product suite back in 2020. Demand has been high and expected to continue. We have seen particularly strong demand in the construction sector.

Given these sorts of metrics, in a more positive economic environment, we see asset finance delivering enhanced benefits to businesses. We recently announced a new asset finance promotion to kick-start growth, waiving the documentation fee for all asset finance deals drawn under a credit line until 31st March 2022.

The UK government is very keen to encourage firms to invest for growth, as evidenced by the £1 million Annual Investment Allowance that is currently available for qualifying assets until 31st March 2023.

Brokers and businesses have responded well to these sorts of initiatives in the past, helping many new firms see the benefits of asset finance as a dedicated funding option. NACFB | 31

Special Feature

Say you want a revolution? The growing popularity of revolving credit lines Kevin Vendel Commercial Director Tradeplus24

ver the last two years the appetite for revolving credit lines has increased, which has resulted in more lenders operating in this space. Coincidently, such growth coincided with the COVID era which as we all know has not been easy for anyone. So, could it be that COVID has triggered a different view towards business lending and what enterprises now expect? One topic that comes up regularly with SMEs is the no personal guarantee option, which seems to have been driven or at least part motivated by government schemes. Although beneficial for the SME sector, it also resulted in more and more business owners expecting no personal guarantees from business lenders in general. Is this a fair expectation? A revolving line of credit refers to a type of loan offered by a financial institution. Borrowers pay the debt as they would any other. However, with a revolving line of credit, as soon as the debt is repaid, the user can borrow up to their credit limit again without going through another loan approval process. There are different ways these products are offered: some are secured against a personal guarantee; some against a floating charge; and some are secured only with a fixed charge against accounts receivables. The downside of a revolving credit line is that it can be reduced whenever there are periodical sales declines. The full line is not always guaranteed to stay at its value given to them at the outset. The benefit of a revolving credit facility, compared to say a factoring facility, is that the client has full control over the debtor collection process, so your client won’t receive any calls or letters from a third 32 | NACFB

party. These days there are a lot of debt collection software solutions out there that support business owners to control this process. Obviously, the downside is that if you do not handle this properly it can also cause more stress for your client, so factoring will always be a good solution for a lot of businesses that require more assistance on the collection front. The key difference with say invoice finance and factoring is that there is no trust account involved. This means no separate bank account in between the client, debtor, and the lender. Some clients won’t have any problem with this, however, again, this is a change in bank details with all your clients. The benefit of a revolving credit line for the client compared to a term loan is increased flexibility. For example, the client always has access to their funds and can dip in and out of their funds whenever they like. They will only pay interest on what they use, if they put the funds back into their account, they don’t pay any interest. Will the revolving credit line keep growing in popularity year on year? I don’t know. What I do know is that a change of view towards some types of business lending is happening and I am curious to see where it goes.

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With a revolving line of credit, as soon as the debt is repaid, the user can borrow up to their credit limit again without going through another loan approval process

Talk to the real property experts. If your client needs development funding this year, look no further. Our offering has been recently enhanced so we can provide improved terms: • Up to £20m available • LTGDV up to 72.5% • Terms up to 3 years • From 6.9% p.a Call us on 0800 470 0430 to discuss your client’s eligibility. Oliver Ward, Head of Operations & Change

Real world lending 0800 470 0430 introduce@assetzcapital.co.uk Assetz SME Capital Limited is a company registered in England and Wales with company number 08007287. Assetz SME Capital Ltd is authorised and regulated by the Financial Conduct Authority in respect of its peer-to-peer lending platform only. ’Assetz Capital’ is a trading name of Assetz SME Capital Ltd. Assetz SME Capital is registered with the Office of the Information Commissioner (Reg No: Z3338899) for data protection purposes. Assetz Capital also offers Recovery Loan Scheme (“RLS”) loans to corporate borrowers through Assetz Capital Lending Limited. Assetz Capital Lending Limited is a company registered in England and Wales with company number 12632494. Assetz Capital Lending Limited is not authorised or regulated by the Financial Conduct Authority. Assetz Capital Lending Limited is registered with the Office of the Information Commissioner (Reg No: ZA759694) for data protection purposes.

Special Feature

The power of partnerships Built upon trust Amanda Hardy Head of Capital Markets Merchant Money

ow more than ever, the need for support within the UK SME sector is vast. Many small businesses are either seeking stability or attempting the growth they desperately need to realise their business potential. According to the FSB between 2020 and 2021, the total UK business population decreased by circa 390,000 (6.5%) – naturally the result of such a tough environment. The alternative finance ecosystem works in a similar way to many other SMEs, meaning we are no stranger to the demands of seeking out funding partners to grow our business. Merchant Money’s recent £150 million fundraise to support our traditional products together with our Recovery Loan Scheme accreditation, was made possible through our close partnerships with funders who share our appetite to deliver to intermediaries and their clients, flexible and tailored long-term funding. By adopting a broker-led distribution model, we rely on partnerships with brokers to help us deliver our funds to small businesses. The importance of finding the right lending partner, who will be able to support a business over time as they grow and evolve, is undoubtedly one of the most valuable assets when advancing a business.

For a broker, doing one’s homework on lenders will undoubtedly set the path to success for a client. It’s about asking the questions – do they meet the lender’s credit appetite, or specific sector focus if applicable, do they meet the communicated minimum investment criteria? 34 | NACFB

For a potential borrower, it’s crucial to have a clear business storyboard that highlights the management team and experience, historical performance, business partnerships and digitisation, amongst others. Helping a borrower get fit for finance is the next step. This can be done firstly by preparing data, as nothing tells a story like the numbers. Be specific on funding purpose. Why does the business need funding, is it to plug a loss or a new expansion project for example? Calculating the required funding amount, rather than simply applying for the maximum amount available, will improve the business’ current and future serviceability. This will help to align borrower expectations, and avoid applications being declined based on lack of affordability. Also consider available security or guarantees, as these may increase loan eligibility on higher risk applications or allow for a greater loan amount or, potentially, improved rates. These elements form a key part of positioning a borrower’s business comprehensively in their search for new funding. The UK’s SME space will be an intriguing one to watch over the next year, as small businesses continue to overcome the financial ramifications of the pandemic and grow with the support of effective partnerships and the ongoing delivery of much needed funding.

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For a broker, doing one’s homework on lenders will undoubtedly set the path to success for a client

Black Arrow — the lender of choice for Soft Asset finance

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Industry Insight

Stop. Challenge. Protect. Helping UK SMEs to identify scams Sarah Sinden Take Five Fraud Expert UK Finance

six (16%) did not challenge an unsolicited phone call requesting money or personal information. The Take Five to Stop Fraud campaign urges businesses to remember that criminals are experts at impersonating people, organisations, and the police. Stop and think. It could protect you and your company.

K Finance’s Take Five to Stop Fraud campaign is warning UK small and medium sized enterprises (SMEs) to be alert for scams targeting their companies.

As many businesses start the new year with people working from home, fraudsters will try to take advantage of opportunities to steal money where firms might be working outside of their normal processes. Criminals often attempt to impersonate a chief executive, senior manager, or supplier to try and convince staff to make an urgent payment or to change the existing bank account details held on file. These scams result in the victim transferring money to a criminal – UK Finance figures showed that in the first half of 2021, businesses saw £59.2 million lost to these frauds, an increase of 35%. In a survey conducted for the Take Five to Stop Fraud campaign, 80% of SMEs said they had received an unsolicited text or email request for money and personal information and 64% had received unsolicited phone calls. The survey also found that although 62% of SMEs claim to be more aware of fraud since the start of the pandemic, a concerning one in

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One in six (16%) did not challenge an unsolicited phone call requesting money or personal information

36 | NACFB

STOP: If you receive a request to make an urgent payment, change supplier bank details or provide financial information, take a moment to stop and think. CHALLENGE: Could it be fake? Verify all payments and supplier details directly with the company on a known phone number or in person first. PROTECT: Contact your business’s bank immediately if you think you’ve been scammed and report it to Action Fraud. Data collected by Barclays has shown that between January and October 2021 the sectors reporting the most cases of SME scams were property and construction (24%), retail and wholesale (18%), business services (15%), and manufacturing and transportation (12%). Common scams targeting business include: • CEO scams: Fraudsters impersonating senior managers via email to convince staff to make an urgent payment outside of their business’s internal procedures. • Invoice and mandate scams: Criminals posing as regular suppliers to convince the business to change their existing bank account details. They are then tricked into sending money to the account. Hundreds of millions of pounds worth of fraud and scams have been prevented through industry initiatives such as the specialist police unit, the Dedicated Card and Payment Crime Unit (DCPCU), which is fully funded by the banking and finance industry. The industry also works with text message providers and law enforcement to block scam text messages, and with Ofcom to crack down on number spoofing.

Our speedy new portal is on its way You can now get a quote in just four easy steps, wherever you are, 24/7. And because it’s faster than ever, you’ll hear back in minutes. Our broker team will also work closely with you to help manage clients of any size. Other support includes: access to our Business, Commercial, Corporate and Institutions banking teams forward-thinking digital options to help make banking quick, easy and efficient access to working capital management solutions expert thought leadership at natwestbusinesshub.com

Search NatWest brokers Visit natwest.com Email brokerteam@natwest.com Or speak to your Broker Development Manager. Finance is subject to status. Security may be required. Product fees may apply. National Westminster Bank Plc. Registered in England and Wales No. 929027. Registered Office 250 Bishopsgate, London EC2M 4AA. Financial Services Firm Reference Number 121878. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Industry Insight

Journey to the north shore Commercial property roadmap in 2022 James Routledge Head of National Commercial Property Investment Matthews & Goodman

he government’s long-awaited ‘Levelling Up’ white paper was published earlier this month. It had promised to outline a clear route map for regional investment and economic stimulation. The theory behind the plan is that local economies will be stimulated as large organisations move away from London to less economically vibrant areas, and so become a catalyst for economic activity, innovation, talent attraction, and rainmaking for the countless service and product suppliers these behemoths need to function – from advisers to sandwich makers.

Part of the strategy involves moving 22,000 civil service jobs out of London and the South East by the end of the decade. The government has already announced that by 2025 the Home Office will move 30% of its workforce to metropolitan cities such as Sheffield, Cardiff, and Belfast as well as towns like Salford, Solihull and Stoke-on Trent (home of a new Innovation Centre) by 2025. Business, Energy & Industrial Strategy (BEIS) plans to move to Belfast, Edinburgh and Preston creating 1,350 new jobs – an increase of almost 60% of roles outside London. The Ministry of Housing, Communities and Local Government will become the Department for Levelling Up, Housing and Communities. It will establish new 38 | NACFB

headquarters in Wolverhampton. HM Treasury and other government departments have announced their intention to create a new economic campus in Darlington. The concept of government and business moving out of the capital and moving ‘up country’ is known as ‘north shoring’. Not only does it save money, the spread of work benefits communities in the north of the UK. It is good news then that north shoring is not limited to the public sector. PwC opened its largest UK regional office in Birmingham and Goldman Sachs announced that the city would host its new regional hub. BT joined this march to Birmingham announcing its intention to create 1,000 new jobs in the city. The decision of Channel 4 to locate its new head office in Leeds is acting as a tremendous catalyst for the creative sector in the region. Still in the north, Manchester boasts the country’s fourth largest digital

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Forecasters believe that in 2022, commercial property capital values will increase by around 2.9% (total return 7.4%)

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Alongside residential properties, the urban industrial sector will remain top of investors’ buy list

turnover and Liverpool appears to have become a magnet for next generation tech companies such as AR-enabled gaming (SwotBots), VR tech (vTime) and animation services companies such as Global Coach. The plan for levelling up is also due to spread – or is already spreading – across to other parts of the country. The Oxford-Cambridge arc life science sector success continues unabated, and the Thames Valley (outside of the capital) has attracted global players including Microsoft, Huawei and Cicso Systems. Under this plan, it’s not hard then to see how the commercial property sector could flourish. Indeed, forecasters believe that in 2022, commercial property capital values will increase by around 2.9% (total return 7.4%). The sustainability agenda will accelerate new green property loan products, offering preferential terms to borrowers intending to improve a building’s environmental performance – mirroring residential loans’ differential pricing based on a property’s EPC. Sector-wise the outlook for commercial property in 2022 is a mixed bag. Occupancy rates will remain below pre-COVID levels and, whilst hybrid working is now key for many businesses, workspace planning will reflect the trend of building communities with similar interests, skills and expertise – designing people-centric workspaces to meet peoples’ needs and values. Forecasts suggest that 10% less office space will be required – with London most exposed. Although secondary high street retail and shopping centres will

experience further modest falls in capital value, the high street’s demise continues to be exaggerated as ‘brick’ networks play a critical role in enabling new online offerings, e.g. Amazon Fresh has opened its first stores with the network set to grow. Retail parks will continue to attract strong investment interest given the recent growth in click-and-collect, customer returns, home deliveries (in effect last-mile fulfillment centres) and alternative use possibilities in urban areas. Drive-thru restaurants and associated clusters will also continue to grow. Alongside residential properties, the urban industrial sector will remain top of investors’ buy list. An inflection point for yields could be close, especially with prime industrials yielding between 3% and 4%. However, constrained supply and competing uses, such as residential, will ensure strong pockets of rental growth given the strength throughout the industrial and logistics sector. Self-storage is attracting significant inward investment and is seeking more innovate solutions – including office buildings and retail parks where price points are lower than prime industrial locations.

Beyond 2022 The property market has a strong propensity to rotate and evolve as external factors drive the shifting fortunes of every asset class. The medium-term trend is likely to be for shorter property cycles, driven by environmental regulations, technology advances, the need for flexible buildings, and societal requirements. NACFB | 39

Industry Insight

At the repair shop A broker’s guide to business credit ratings James Piper Managing Director Lightbulb Credit

or businesses, credit ratings have a direct impact on borrowing of any kind, as well as trade terms, working capital and tendering. If a rating is low, it can have a negative influence on the rates and terms offered, or completely restrict access to funding altogether. The direct correlation between ratings and these key financial aspects of a business is not always recognised, and as a result many companies settle for higher rates without knowing they could access any better. To better advise their clients, brokers can also benefit from understanding how ratings work in greater detail. This knowledge can be used to help improve a client’s position before the funding application is submitted to ensure the best possible outcome. There are six main credit rating agencies in the UK and all limited liability partnerships (LLP) and limited companies are rated using their algorithms. All utilise data from Companies House, alongside payment data collected to evaluate how suppliers are paid against agreed credit terms. This combined data is then used to determine a company score and generate a recommended credit limit. Each agency has its own unique algorithm and scoring methodology. As a result, disparity between agencies and ratings is not only common – it’s actually the norm! Therefore, having visibility of scores across the whole market is much more valuable than only checking scores with one agency. For brokers it’s also useful to know that two of the six agencies have traditionally dominated the funding approval market. The key to gaining optimum funding for a client is to maintain an awareness of these specific scores and take direct action when needed to improve them. 40 | NACFB

There are other factors that can have an impact on ratings, even something as simple as a business having the wrong SIC code can throw a score out. More significant factors include CCJs and the type of filing they choose to complete for Companies House. For example, businesses turning over less than £10.2 million can legally file exempt accounts, enabling them to file only a balance sheet rather than a full P&L. From an accounting point of view this is considered timesaving, but this simple action then makes it hard for the rating agencies to score them accurately due to the lack of public data available. When presented with a lack of data on a business, the agencies will always take the risk averse view, resulting in the company getting a lower score and credit limit. To maximise funding opportunities, it’s critical that the data available on a company reflects their current business performance before making the application. Business credit repair is a new concept in the UK and many business owners don’t realise that they can challenge a poor rating, or that it’s possible to get scores re-evaluated and improved quickly using real time data. By building credit repair into the funding process, brokers can not only maximise their opportunities, but also add real value to their clients in the form of insight and in many cases, a more positive funding outcome.

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Many business owners don’t realise that they can challenge a poor rating, or that it’s possible to get scores re-evaluated and improved quickly

Industry Insight

Follow the money Why all roads lead to real people Neil Petty Director BloomSmith

usiness moves in cycles. I believe that we are entering a positive period for real estate investors, developers and funders and so don’t want the content of this article to be viewed as negative. On the contrary, what I’m trying to do is highlight opportunity. I like to think I have a strong sense of what the average UK consumer, and therefore the businesses that serve them likes. Before investing into BloomSmith my business was working with two million FCA regulated customers who had difficulty in meeting small personal payments. We all sometimes forget that behind the suppliers to retail businesses (for example in the property industry) there is always a dependency, ultimately on the consumer. Begbies Traynor Group (BTG) reported there were 562,550 UK businesses in significant financial distress during Q3 of 2021. We must remember these figures are driven behind the scenes, by personal income. The BTG report also highlighted that CCJs are often a bellwether to the future. This latest insolvency data paints a gloomy picture. Official data shows there were 9,101 CCJs lodged against companies during Q3 2020, rising to 21,769 in Q3 2021, which is a 139% uplift. In the end, every business insolvency is about people. The latest official figures show that Court activity is picking up as creditors become more aggressive in chasing debts. This is, in my experience and paradoxically, indicative of the beginning of a recovery. Lenders do not aggressively chase debts when there is no prospect 42 | NACFB

of recovery or potential to redeploy the funds positively. So, as lenders of VAT qualifying real estate transactions, why do we care? The answer is simple: distress, debt restructuring, and debt recovery actions, combined with the prospect of a welcome recovery, mean liquidity is important. BloomSmith cares because our business is to provide part of this liquidity fast, in the form of the 20% VAT requirement. To add to the consumer picture and put real estate in context, I refer you to the findings of property agents, Eddisons. They recently shared with us how occupiers are now beginning to use physical environments to meet their multi-channel needs. They have also highlighted how the internet of things (IoT) and data, along with delivery technologies, are going to repurpose physical real estate. This is, again, all about change and evolution, both of which require investment and liquidity. This will begin where there is most distress and the high street and retail in general is at the epicentre of this current consternation. We are optimistic for the future of retail because this transition is underway and some of our more prescient customers have been working with us to make sure they have all the liquidity they need to take advantage of this change.

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Lenders do not aggressively chase debts when there is no prospect of recovery or potential to redeploy the funds positively

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Broker Voice

The L-word Don’t call us ‘landlordsʼ Peter Barnes Head of MFB for Intermediaries Mortgages for Business

scar-winning actor Ben Kingsley denied he orchestrated the campaign to have himself referred to as Sir Ben Kingsley on a poster advertising one of his films. But Kingsley has form. Apparently, he once chastised a German reporter who had the temerity to address him as ‘Mr. Kingsley’. “It’s Sir Ben. I’ve not been a Mister for two years,” he said. It’s not a story that reflects very well on Sir Ben. But it highlights that names, and how people refer to us, matter. Indeed, the majority of buy-to-let borrowers polled recently by Mortgages for Business said they would prefer not to be called ‘landlords’. At first off it sounds peculiar. On reflection, it isn’t. Some parts of the US media have reportedly stopped using the word ‘landlord’ due to complaints from the buy-to-let community. 42 | NACFB 44

The government has hammered landlords for years – think Theresa May’s 3% Stamp Duty surcharge and other tax deterrents. They’ve become the government’s whipping boy in a bid to excuse its failure to build more homes and fix the housing market. And it hasn’t stopped – it’s ongoing. At the start of the year, I read that Charlotte Gill – a prominent Conservative, deputy editor of the Conservative Home website, and a columnist in The Express newspaper – was complaining that her party, and others, have failed to do anything about a housing market in which the younger population is “already having to cough up most of its income to landlords.”

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Quote

Gill’s tone echoes that of former Tory councillor Sam Clark who wrote on the Conservative Home website just before Christmas that the Tory government should consider outlawing buy-to-let purchases by landlords. Most recently, a House of Lords report, Meeting Housing Demand, claims the private rental sector has become "increasingly unaffordable”. The report quotes a housing policy consultant saying: “The private

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There’s clearly a lack of affordable social housing – and that’s not the fault of landlords

rented sector is by far the most expensive, by far the lowest quality and by far the least popular. It is absolutely the worst possible tenure for almost everybody in it.” The report goes on to say: “Those living in the private rented sector are more likely to live in poor quality, overcrowded conditions than owner–occupiers, and often have limited forms of redress.” The chair of the report is Baroness NevilleRolfe, a Tory. It’s not all the doing of politicians, of course. Sections of the media have vilified the buy-to-let community, too. Indeed, almost three-quarters of those landlords surveyed (73%) told us they felt “unfairly portrayed as this generation’s financial bogeyman”. And only 8% felt that landlords were not “financial bogeymen” at all. The high-profile Guardian columnist Owen Jones is a case in point. In his book, The Establishment: And How They Get Away With It, he suggests unscrupulous landlords are the cause of high government spending on housing benefit and tax credits. Landlords put up rents, safe in the knowledge that the state will step in to subsidise tenancies through increased housing benefit payments. No wonder the buy-to-let community doesn’t want to be associated with the term ‘landlord’. The term carries much more baggage than it once did. Things have gone far enough.

What would happen if we took landlords out of the housing equation? The impact on the property market would be significant and almost entirely negative. And this is what makes ‘landlord bashing’ so baffling. There’s clearly a lack of affordable social housing – and that’s not the fault of landlords. The government is not creating a great deal more social housing to solve the problem (or making much headway on house building at all, really). In the absence of the state making any progress people need somewhere to live. Private landlords have taken up the slack from the affordable and council home sectors. Instead of bashing landlords – or hitting them over the head with regulatory sticks – shouldn’t the government be encouraging them to invest more? Shouldn’t the media be championing landlords for their contribution to the housing sector? Be that as it may, what do you call landlords who don’t want to be called landlords? Most of the buy to letters we surveyed said ‘small housing providersʼ. About a third wanted to stick with ‘landlordsʼ. And just over a fifth opted for other options – including ‘rental accommodation providerʼ. Whatever term the buy-to-let community gravitates to, perhaps it’s no wonder they fancy a rebrand. If it was up to me, I’d give them all knighthoods. NACFB | 45

Opinion

Green is the colour How brokers can support carbon reduction opportunities Dave Furnival Head of Broker NatWest

n 2021, in-depth analysis of the UK SME landscape by NatWest found that small and medium-sized enterprises have the potential to unlock significant revenue growth from climate action. To help deliver on the UK’s carbon reduction ambition, though, the Springboard to Sustainable Recovery report said SMEs must have access to funding. As SMEs consider their sustainable investment strategy for 2022 – from improving buildings’ emissions and insulation to switching to electric vehicles or renewable power – they will be seeking specific financing options from their local broker. There is significant opportunity to add value here by providing customers with the targeted support they need to realise their net zero ambitions. There is a chance for brokers to think more holistically as we enter the net zero era. Those that understand the customer’s green requirements and convert them into a relevant debt package will not only provide solutions for ambitious SMEs, they will also be future-proofing their own business by becoming part of the ecosystem. Some business customers will know how they want to recover from the pandemic and invest to grow and become more sustainable. In the agriculture sector, for example, a farmer might be looking to invest in vertical farming, wind power turbines, electric motor tractors or biomass boilers. The green energy credentials and bespoke asset finance capabilities of lenders will be hugely important here. Other customers might be searching for support on relevant financing options to help them step into green growth opportunities. 46 | NACFB

Brokers with the knowledge and understanding of this evolving market will be well placed to help SMEs join the green transition and deliver climate action. Part of the UK innovation strategy is to ensure ambitious growth businesses can access the right private finance. The government wants to see a surge of business-led investment and now is a great time to be thinking about investing. Sole traders and partnerships can look to take advantage of the Annual Investment Allowance, which is currently set at £1 million and is in place until 31st March 2023. And the super-deduction means companies investing in qualifying new plant and machinery assets will be able to offset expenditure against taxable profits. The finance community has a crucial part to play in creating a more resilient world. That is why NatWest has pledged £100 billion of climate and sustainable funding by 2025 to support the investment the UK needs. There could be significant further demand for funding throughout 2022 as businesses seek to move on from the pandemic and transition to a new net zero economy. Brokers will continue to play a key role in supporting SMEs towards a sustainable recovery.

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Part of the UK innovation strategy is to ensure ambitious growth businesses can access the right private finance

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Opinion

Moving the dial Funding green assets of the future John Phillipou Managing Director – SME Lending Paragon Bank

ust like any specialist lender, we are continuously expanding our expertise, innovating our product range, and extending our lending. As a funder, we are currently looking at how we can support our customers on their green journey and the Government’s Recovery Loan Scheme (RLS) presents new opportunities for lenders and businesses in this area. One of the great things about the RLS is that it has relatively simple eligibility criteria, which has helped both lenders and borrowers. The two foundation stones for the scheme are that an RLS loan should either create cheaper funding for the client or facilitate loans we would struggle to fund as part of our everyday ‘business as usual’ lending policy. The latter is a big benefit for two reasons. Firstly, it allows us to lend against technologically advanced, innovative assets that will help power SMEs’ recovery forward, but that aren’t always ‘tried and tested’ to meet our usual criteria. Secondly, it means we can now lend to customers that may not meet our credit risk requirements because of the short-to-medium term impact of COVID-19 on their business, helping those businesses to recover post-pandemic. Examples of green assets that we have recently approved include battery powered cars, electric taxi fleets, electric bin lorries, waste to energy conversion plant material, and biomass boilers. We anticipate that more sustainable and innovative green assets are going to be funded – for example, the use of electric or hydrogen cell technology and other similar initiatives. Historically, those assets can be challenging to fund over the long-term as there is an unknown element to how they perform over time. Schemes like RLS can help lenders adjust their risk appetite to facilitate green lending better in the future. 48 | NACFB

Another emerging trend is around funding the technological part of the asset, not just the mechanical piece. When agreeing a loan against an asset, banks look carefully at the value of the equipment involved based upon resale data. As the market goes more digital, the value of the assets is transitioning from pure ‘metal’ costs towards the softer ‘system and interface’ costs. This upgrade in technology means that banks can’t easily pin a security price, which means lending against digitally powered assets has historically been a challenge. With those assets, software is the most expensive thing but currently valued at zero by many lenders. RLS will give lenders the opportunity to ‘lend and learn’ and review processes and lending criteria for the long-term. In that sense, RLS has the potential to empower and support the path of digital transformation amongst UK SMEs. Given the myriad of green options, it can be difficult for a business to know where to begin. A good place to start is for a business to really get to grips with their carbon footprint. It’s quite hard for SMEs to know what their carbon footprint is, but there are resources available to support with this including those offered by the Carbon Trust. If business owners do the work to establish this, they will often find there are incentives available to lower it. It’s also important to note that this is a really good time for SMEs to begin this journey to a greener future. The pandemic has moved the dial on the green agenda – we are coming out of the pandemic with a much bigger focus on improving quality of life and there is a much bigger consumer emphasis on a business’ environmental credentials.

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…software is the most expensive thing but currently valued at zero by many lenders

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Opinion

Bouncing bad Fraud and misuse of £4.7 billion COVID loans Jon Munnery Partner Begbies Traynor

ut through the noise of ‘Partygate’ and you may well find column inches on the Treasury’s £4.7 billion write-off of misused and fraudulent COVID support loans; specifically Bounce Back Loans (BBLS) and Coronavirus Business Interruption Loans (CBILS). These schemes were designed to act as a crutch for UK businesses throughout the pandemic and subsequent lockdowns, but vast sums of money have gone astray.

What constitutes fraud or misuse of a COVID loan? If a business is unable to afford BBLS or CBILS repayments, the company is technically insolvent as it can no longer meet its liabilities as and when they fall due. But further problems may arise when an insolvency practitioner or official receiver carries out their due diligence on the factors leading to the business’ demise. Alarm bells will ring when instead of using the loan to inject working capital into the business, directors and sole traders have spent the funds on personal purchases or transferred the money to personal accounts without extracting it from the business as a salary or dividend. Question marks will also be raised if excessive payments (dividends) are taken from the business; particularly if these drawings are much higher than they were historically. 50 | NACFB

Of course, there’ll always be some room for business owners and directors to dispute the notion of misuse on specific purchases which they might argue are for business purposes, e.g., company cars, top of the range tech, luxury hotels and so on. But it’s up to the insolvency practitioner to ascertain whether the loan usage was fair or reckless. If a director or business owner is accused of misusing the funds, this could be seen as fraud, and they may be held personally liable for repaying the outstanding balance. They may even be investigated by the Insolvency Service and face director disqualification, as well as a heavy fine.

A few bad eggs? In my experience, it’s fair to say misuse has been common – a £4.7 billion write-off would support that – but I do believe most businesses took out these loans in good faith. In some cases, misuse has been naïve rather than malicious, such as the case of a director who spent a £50,000 CBILS loan thinking it was a grant, not a loan. They admitted they wouldn’t have taken the loan if they’d realised it was repayable. Other more nefarious examples include directors using the schemes to send bonuses and payments to themselves, friends and family, to put down deposits on houses, take flying lessons, buy luxury items and even spending thousands on pornographic sites. Of course, in our role of advising businesses in distress, we don’t condone this misconduct in any way. If a liquidator uncovers fraud or misuse of the loan schemes, they will look to recover the funds from the director – if they are found to be a breach – by way of misfeasance action. It’s safe to say we’re going to see a lot of this over the next 12-18 months.

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Listicle

Top five broker survey takeaways

he annual NACFB broker survey, undertaken towards the end of last year, sought to gauge how SMEs in need of finance interacted with intermediaries and shed light on the activities of the Association’s membership. The headline finding revealed that Members helped to originate a staggering £40.9 billion of funding in 2021. But there were also other areas of growth. Here are five more findings from the survey which demonstrate the strength of the intermediary-led sector.

1. On average Members had 420 active clients We defined client as a firm or individual for whom a Member has sourced finance over the last five years. As you might expect, the result is influenced by the Member’s primary business activity. Those operating primarily in the leasing and asset space, which typically sees lower ticket deals but higher volumes, had on average 773 clients. Whereas Members whose primary offering is high ticket development finance had on average 191 active clients. The survey data revealed that in total, the NACFB membership welcomed 146,885 new clients to their roster last year. In all, 21% of the membership had fewer clients in 2021 than in 2020, whilst 56% saw their active client base grow.

2. Members’ average transaction value was £458,582 This represents a 17% increase on 2020’s figure (£391,345) and is up 29% on 2019 (£355,221). The finance sector with the biggest year-on-year average increase was factoring and invoice finance where Members averaged £695,833 in 2021 compared to the year before (£477,778) representing a 46% rise. In 2019, the year before coronavirus took hold, the average transaction was valued at £371,667 suggesting, perhaps, that the pandemic created a greater need by SMEs for factoring and invoice finance. At the other end of the scale, the average transaction size of a leasing and asset finance deal fell back to £79,811 last year, down 39% on 2020 (£130,434) and more akin to 2019 deal sizes 52 | NACFB

(£21,091). Overall, 45% of Members said their average size transactions were at the same level as 2020, whereas 41% said that for them their average size of transaction had increased.

3. Members averaged 117 lenders on their panel The number of lenders Members have on their panel continued to grow steadily, up from 106 in 2020, and 101 in 2019. In all, 57% of the NACFB membership said they had more lenders on their panel in 2021 than in 2020, just 10% said their panel had shrunk. The increase is likely attributed to the growing number of bridging and fintech lenders in the market. Whether or not Members actually used all of the panel is not known. We suspect that many Members may have a core of go-to providers they call upon and we’ll seek to find out more in the next survey.

4. Members’ average RLS transaction value was £539,281 In place of BBLS, CBILS, and CLBILS, 2021 heralded the arrival of the Recovery Loan Scheme (RLS), the state backed COVID loan scheme facilitated by the British Business Bank. The average size RLS facility via an NACFB Member stood at £539,281 – over twice the size of the average sized CBILS loan in 2020 suggesting that when businesses needed state-backed funding in 2021, their need was comparatively greater than in the year before.

5. Members averaged 11 RLS deals each Engagement with the RLS was lower than many expected. Of the NACFB Members that used the scheme, on average only 11 deals per brokerage were placed through it. Half (49%) of Members said the main reason for reduced scheme activity was a lack of direct RLS enquiries, whilst 16% said their clients simply did not meet the scheme’s criteria. The full results of the 2021 NACFB broker survey can be found in the January 2022 issue of Commercial Broker magazine.

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Five Minutes With

ive F Minutes with: Louisa Sedgwick Louisa Sedgwick Managing Director, Specialist Mortgages Hampshire Trust Bank Describe your role in ten words or less? New, exciting, busy, challenging, educational, rewarding... ageing!

How do you make a difference? Gosh – I like to think I am a good listener who adapts well to most situations. At my age (I am very old) I have experienced a whole host of people and practices – I always try to take the positives out of most situations and then share them.

What’s the most common reason for turning away a deal?

much time because you have so much. Now I see the weeks rushing by and I try to cram them with experiences – so whilst no one can buy time, we can use it far more effectively – rubbish answer, but I am not good at making anything that anyone would want to buy – other than sausage and mash!

What advice do you have for the modern commercial finance broker? Know your lender – what do they do, what niches can they offer to support your customers – they will help you write more business if you work closely with them.

Poor story telling! If we don’t get a full story, it’s incredibly difficult to build a solution – we are always keen to try to support the broker in placing the deal with us, but we need warts and all to help reach the decision.

I would like to say running – but actually it’s sour cream and chive pretzels – lovely!

If you were to start your own small business, what would it sell?

What changes do you hope to see in the ‘new normal’?

Time – when you are young you waste so

I would love to think that we don’t always

54 | NACFB

What has been your lockdown essential?

go back to doing what we always did – that would be so easy. How fabulous would it be if we maintained the skill of enjoying a great work/life balance – go out, get some fresh air, feel rejuvenated – I am yet to find a task that absolutely needs to be done there and then – we are after all not saving lives – we are just enhancing them.

Which person has inspired you the most? I have worked with some truly inspirational people – too many to mention, I have been lucky. But the person who has inspired me the most is my mum – she is bright, beautiful, supportive, loving and just all round awesome!

What law would you pass if you were Prime Minister for the day? I would like to see robust housing policies be set and then actually followed through, some continuity of tenure of a decent housing minister– a five-year plan would be a dream!

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Articles inside

Five minuteswith

Listicle: Top five broker

ParagonBank: Moving the dial

BloomSmith: Follow the

Mortgages for Business

NatWest: Green is the colour

Matthews & Goodman

Cambridge & Counties Bank

Lightbulb Credit: At the

Adsum: Advancing advances

Merchant Money: The power of

NACFB: Breaking the chain

Industry news round-up

YouLend: Cashflow is king

National Farmers’ Union

Membership news

NACFB: Standing on principle

Note from headline sponsor

Lloyds Bank: Still by your side

Updates from the Association