Issue 100 MAY 2022
Broker COMMERCIAL
The award-winning magazine for the National Association of Commercial Finance Brokers
16 YOU CAN HAVE IT ALL Why speed and service are not mutually exclusive
18
UNTANGLING THE WEB Explaining disclosure rules on your website
On the record Voices that shaped the NACFB
42 TAKING THE PLUNGE SMEs diving into the world of immersive experiences
50 BRICKS BEYOND BORDERS Servicing the international property buyer market
Contents
In this May issue NACFB News
Special Features
4 6 8
22-23 25-39 40-41
10 12-14
Note from Norman Chambers Updates from the Association Note from headline sponsor, Allica Bank Industry news round-up Membership news
Sancus: Time for a refurb? NACFB: On the record Together: Back of the net
Industry Insight 42 44
365 Business Finance: Taking the plunge Selina Finance: The long view
Opinion & Commentary 46 48 50 52 54
Crystal Specialist Finance: Come back around Institute of Directors: The Ukraine crisis BC Invest: Bricks beyond borders Listicle: 5 tips for a winning award entry Five minutes with: Andy Smith, Relationship Director, CAF Bank
16
33 Eastcheap | London | EC3M 1DT Laura.Mills@nacfb.org.uk MAGAZINE ADVERTISING T 02071 010359
NACFB: Untangling the web
National Cyber Resilience Centre Group: Developing cyber resilience
33 Eastcheap | London | EC3M 1DT Kieran.Jones@nacfb.org.uk
LAURA MILLS Graphic Designer
Roma Finance: You can have it all
Magazine@nacfb.org.uk
Ask the Expert 20
KIERAN JONES Editor & Feature Writer
33 Eastcheap | London | EC3M 1DT Jenny.Barrett@nacfb.org.uk
Compliance Update 18-19
Further Information
JENNY BARRETT Communications Consultant
Patron Profile 16-17
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42
MACKMAN Design & Production T 01787 388038
mackman.co.uk
NACFB | 3
Welcome
Norman’s Note
I
t’s hard not to get misty-eyed when looking back at the nineties. For people of my generation, it was a halcyon period, one that is understandably venerated by today’s youngsters. And much to my amazement, I have been reliably informed that the nineties were not just over a decade ago, indeed over twenty years have slipped through our fingers since the millennium drew the era to a close. But nostalgia isn’t what it used to be. And I reference the nineties only because this issue of Commercial Broker is something of a retro throwback. To mark both the NACFB’s 30th anniversary and this very magazine’s 100th issue, we’ve collated a selection of voices that have helped shape the Association and form what it is today.
Norman Chambers Managing Director | NACFB
The Association continues to back print-based media by delivering a physical copy of the magazine to the membership. Whilst we maintain digital versions, the magazine represents the tangible, you’re able to flick through it with your hands. We do this because I know our community values the tangible and is all too aware that not everything can be digitally replaced. Speaking of digital replacement, and in a nod to the NACFB’s 1992 foundational year, the cover feature’s compilation of analogue insights is cassette themed, with the collation representing something of a lovingly curated mixtape; pulling together and uniting elements from across the entire industry. Much like the NACFB itself.
4 | NACFB
NACFB News
Association updates for May 2022
Commercial Broker Awards opens for submissions
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Member brokers invited to submit entries across 15 categories Returning for only the third time, the Commercial Broker Awards is an opportunity for the NACFB to thank and showcase its Member brokers. The deadline for NACFB Members to enter for this year’s awards is 5pm on Friday 24th June 2022. All winners will be announced and presented with their awards at an in-person ceremony on Friday 23rd September at Edgbaston Cricket ground in Birmingham. Tickets for Member brokers are subsidised at just £90 each or £900 per table of ten, using the exclusive discount code NACFBBROKER50. Standard tickets are priced at £180 each or £1,800 per table and will also soon be available to both NACFB Patrons and Partners. All tickets include a welcome drink on arrival, a three-course meal and half a bottle of wine per person. Whether you are a sole trader broker, a regional player, or a national brokerage, the NACFB Commercial Broker Awards are the ideal way to demonstrate to your clients, peers, and lender partners that you have a track record of success alongside the skills and expertise to grow in the coming months and years. 6 | NACFB
CM
This year, there are 15 different categories to choose from: • • • • • • • • • • • • • • •
Development Broker of the Year Buy-to-Let Broker of the Year Commercial Mortgage Broker of the Year Short-term Finance Broker of the Year Asset & Leasing Broker of the Year Cashflow Broker of the Year Factoring & Invoice Discounting Broker of the Year COVID Recovery Award Sole Trader of the Year Rising Star of the Year Small Business Champion Award Deal of the Year Digital Broker of the Year Broker Network of the Year Broker Innovation Award
NACFB Members can enter written submissions for as many relevant categories as they deem appropriate. The judging process is equally weighted and open to brokerages of all sizes, with the shortlist drawn on merit. The judging panel, made up of independent industry experts, will be looking for demonstrable evidence of broking excellence in each category. Once a shortlist has been produced, NACFB lender Patrons will also vote in each of the categories. More details on how to enter and ticket options can be found online via commercialbrokerawards.co.uk
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Note from our Sponsor
The bigger picture Banking innovation is about more than just tech
Nicola Tunney Head of Operations Allica Bank
T
he future of banking is digital. No one is disputing that. But too often brokers and businesses are finding themselves short-changed by innovation, with automation and streamlining often coming at the expense of the broker and customer experience. As a relationship-focused digital bank – one firmly committed to the value of human relationships with our brokers, and the importance of human credit decision-making – our view is that technology should enhance relationships, not replace them. This means taking a holistic approach to innovation. One that thinks beyond just ‘what can we automate?’ to what is going to improve the broker and customer experience as a whole. Take, for example, our ‘deal’ teams. These cross-functional squads are built around each individual business development manager (BDM). Their goal is to get deals done quickly and transparently by enabling all parties to manage the deal through to completion, stay fully informed on its progress, and act as a champion for the broker and customer at each stage.
BDMs work directly with an underwriter, a member of the credit operations team, a valuer, and a solicitor until a loan is drawn down. This close collaboration and open approach ensures that communication is strong and effective both internally and with our external partners. This may not be what comes to mind when someone mentions the word ‘innovation’, but it’s proven to be an incredibly popular way of 8 | NACFB
working among our broker partners. And I don’t know anyone else working as collaboratively as this!
Tech that empowers, not replaces Of course, none of this could be done without our technology. But that’s where our focus on empowering our people, not automating them, makes the difference. Our introducer portal – rated as ‘excellent’ by 44% of brokers in our latest survey – makes applications easier than ever and lets brokers get real-time updates on the progress of their cases. This, in turn, means our BDMs can spend more time solving issues for brokers, rather than simple admin. Automation, where appropriate, frees up our underwriters to focus only on what they do best: assessing applications quickly. Our technology also enables us to collaborate closer than ever with our external partners, and communicate more transparently and seamlessly with our customers. At a time when many banks are choosing between technology and relationships – I’m glad I work for a bank that does both.
“
That’s where our focus on empowering our people, not automating them, makes the difference
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Industry News
Industry News 1. FCA flags concerns over financial crime defences
3. Loan rates fall as demand for home improvements rise
6. Small firms eye financial growth despite slump in optimism
The FCA has said the financial crime controls employed by challenger banks should be improved after a “substantial” increase in suspicious activity reports filed last year. Digital banks should be collecting more data about where their clients are making their income and what their jobs are so they can better spot criminals and money-launderers. The FCA said that there could not be a “trade-off” between getting customers to come into the fold and the checks that all banks need to do.
Borrowers looking to make home improvements will find the average cost of an unsecured personal loan has fallen year-on-year, according to research from Moneyfacts.co.uk. Loan rates have fallen on small sums – on a borrowing amount of £3,000 over a three-year repayment period, the average loan rate is down from 14.6% a year ago to 14.3% today. Borrowers can avoid paying more than £600 in interest charges on an average loan by choosing a fee-free 0% credit card instead.
2. Manufacturing demand slows amid cost rises
4. Lenders pushing green loans to landlords
A new survey by Azets reveals that 51% of SMEs across the UK and the Nordics are optimistic about the economic outlook, down from 68% last summer. UK SMEs are the least positive, with 40% expecting the economic climate to worsen. However, despite concerns over the economy, 62% of all SMEs expect their turnover to increase during the next year and 53% expect profits to improve. Peter Gallanagh, at Azets, said: “SMEs remain committed to pivoting their business models and embracing digitalisation.”
Optimism fell sharply in April, as growth in manufacturing output and new orders slowed and costs and selling prices grew at their fastest paces in over 40 years, according to the CBI quarterly Industrial Trends survey. The cost of raw materials was the most important factor behind expectations for cost growth in the next three months followed by energy costs, transport costs and labour costs. Investment intentions weakened notably, but employment growth improved and is expected to pick up further next quarter.
The number of green buy-to-let deals – which offer cheaper loans to investors who have or will make energy efficiency upgrades – has tripled in the past eight months. There were 369 such mortgages at the end of March, up from 118 in August last year, according to data from NACFB Member firm Mortgages for Business. Green products account for one in six buy-to-let deals on offer to landlords borrowing personally and one in five deals to investors who use a limited company.
2 10 | NACFB
5. Insolvencies more than double with firms hit by inflation Official figures released by the Insolvency Service show company insolvencies more than doubled in March as soaring inflation and rising borrowing costs pushed firms over the edge. Some 2,114 firms in England and Wales registered for insolvency during the month, up from 1,516 in February and 999 in March 2021. The first quarter of this year saw the highest number of company insolvencies recorded since the third quarter of 2017. The number is expected to increase as government support schemes draw to a close.
6 7. More retailers will disappear from Britainʼs town centres More businesses will disappear from Britainʼs town centres this year than during the two years of the pandemic according to Andrew Goodacre, CEO of the British Independent Retailers Association. He said: “If the cost of products go up these can be passed on to the consumer but it is very difficult to pass energy and wage rises on entirely.” Mr Goodacre added that some members were also struggling to be accepted for energy contracts because suppliers deemed them too high risk.
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Membership News
Membership News Reward boosts Yorkshireʼs SMEs with £50m
Metro Bank launches ABL proposition
Reward Finance Group has helped boost the Yorkshire economy in the last 12 months by providing over 140 SMEs with an additional £50 million of funding to enable them to unlock growth potential, create new jobs or help them navigate through a difficult trading period.
Metro Bank has announced the launch of a new asset-based lending (ABL) proposition. The NACFB Patron will provide lending facilities of £2 million and up against a wide range of assets including debtors, stock, plant and machinery in addition to commercial property.
The NACFB Patron attributes this success to its straightforward and flexible lending products, speed of delivery, and the confidence of an increasing number of companies to build their businesses post-pandemic. Gemma Wright, Reward’s managing director for Yorkshire and the North East, said: “As a business based in the region, it is particularly pleasing to fund the ambitions of SMEs across Yorkshire.”
The new offering is available to both existing and new-to-bank customers. Asset-based lending can be used for a number of business needs including refinancing of existing loans, growth both organically and via acquisitions, as well as transactional opportunities such as management buy-ins and buy-outs.
Among the SMEs in Yorkshire benefitting from Reward’s support in the last 12 months is a garden centre in Harrogate which received a working capital injection of £1.3 million to build a 20,000 square foot food hall, incorporating a 160-seat restaurant, and creating 60 jobs. The NACFB also supported a property business which secured £270,000 to purchase a 13,487 square foot freehold building in Halifax which it is separating into seven small industrial units for start-up businesses. Reward has grown along with the SMEs it funds. In the last year the NACFB Patron opened three further regional offices. 12 | NACFB
Commenting on the announcement, Alan Austin, head of asset-based lending, said: “Metro Bank’s focus will be on providing truly bespoke lending solutions that are tailored to each and every customer. We’re looking forward to supporting many more businesses in the years ahead.” Kevin Craven, director of invoice finance said that the new proposition would allow the Bank to offer even more choice to businesses. Metro Bank’s lending options currently include cashflow loans, revolving credit facilities and overdrafts. The NACFB Patron is currently rated as the number one high street bank for overall service quality and service in stores for business customers according to the Competition and Market Authority’s February 2022 rankings.
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Membership News
Membership News Funding for pet industry SMEs grows 94% over last two years
Record-breaking performance for Selina Business
365 Business Finance has highlighted the UK’s rapidly growing pet industry, reporting a 94% increase in funding for pet retail outlets throughout 2020 and 2021 compared to 2018 and 2019.
Selina Business has reported a record-breaking performance for Q1 2022, more than doubling the total sum lent to businesses in the final quarter of last year. The NACFB Patron has also seen a twofold increase in the total number of case submissions for business credit facilities from its broker channel compared to Q4 2021.
According to the NACFB Patron the latest data also shows a 74% increase in funding for veterinary practices throughout 2020 and 2021, when compared to the previous two years. As a reflection of the high demand for pets, pet supplies and grooming services during the COVID-19 pandemic and lockdowns, this significant jump in the amount funded to pet related businesses is not just a temporary trend. 2022 is already proving to be yet another strong year for both the pet retail and veterinary industries, indicating that the knock-on effects of the pandemic and pet ownership are not slowing down anytime soon. Managing director, Andrew Raphaely, said: “The continued growth of the pet industry is an indication of how new working from home practices have allowed some individuals to adapt their lifestyles, achieving a better work life balance in many instances and, in particular, being able to welcome dogs and cats into the family.” In January the team at 365 Business Finance showcased their beloved team pets for Walk Your Dog awareness week. 14 | NACFB
All loans were provided to growing businesses, some of which were used to refinance existing facilities — particularly unsecured finance and CBILS loans which were outside of the interest-free period. The largest deal of the period was a £871,500 loan — agreed at 75% LTV over a 24-year term — for a nursery business, which required funds to invest and expand. Commenting, Josh White, business lending lead said: “We have seen more business owners wanting to reduce their cost of capital after loading themselves with expensive unsecured finance and seeing their CBILS loans starting to require repayment.” Selina Business relaunched its business credit facility product in July 2021, with an increased focus on limited company lending. Josh said that the focus for the NACFB Patron in the second quarter would be to improve the broker and client experience through the introduction of technology to further speed up its underwriting processes.
Patron Profile
You can have it all Speed and service aren’t mutually exclusive Charlotte Rutter Head of Communications and Networks Roma Finance
W
hen you submit a case, you want speed and certainty. That’s a given. But what if it’s complex? Perhaps you know the customer’s circumstances are borderline or just fall outside of the lender’s normal criteria, but the case stacks up. That’s where bespoke underwriting comes into play. And that takes time, right? Not necessarily. Roma Finance is a forward-thinking, short-term finance lender, combining technology and unrivalled expertise to offer brokers and your customers the best of both worlds – smart, efficient processing with a personal touch on complex cases. We call it lending less ordinary.
Enthusiasm and experience At just 12 years old Roma Finance has the ambition and enthusiasm of any successful, growing business. It was founded by Scott Marshall in 2010 with a couple of desks and one employee. He’d worked at Together as credit and risk director and before that at Ford Campbell. Scott launched the business to provide personal, competitive, and innovative lending to property investors, landlords and developers. And those enduring values remain at the core of the business. 16 | NACFB
Today, Roma is a team of more than 40 who work closely with intermediaries throughout the UK providing a range of finance including bridging, bridge-to-term, development and buy-to-let. Cases are underwritten individually, and we can often help those who sit outside mainstream lending criteria. This includes borrowers with unusual income streams, the self-employed, those with a credit blip and investors looking for funding on non-standard property types. We work with brokers whose customers have varying degrees of experience, from those starting out on their property journey to very experienced developers. For Roma it is all about the drive of the borrower; do they have a plan and is it viable?
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We don’t believe that bespoke underwriting and technology are mutually exclusive
Sustainable growth Over its first decade Roma quietly carved out a reputation for excellent personal service and unrivalled property experience. In 2020 we stepped up a gear, boosting distribution, productivity, funding, tech capability, and of course, volumes. The latter has doubled in the last year alone. A hugely successful rebrand in 2021 put Roma on the map, boosting our profile with brokers as a modern, tech-focused, short-term finance lender renowned for both its service and property expertise. But, to lend with integrity remains central to our vision and we’re extremely proud of our negligible default rates. In fact, none of Roma’s pandemic loans experienced any defaults or arrears.
Getting up to speed We’ve long been trusted for our ability to take a bespoke view on funding unusual or complex projects – we believe in lending less ordinary and intelligent touch underwriting where the case works. But we know that brokers need speed and certainty too, so last year we invested heavily into streamlining our processing and underwriting capabilities to shorten application forms, simplify the submission process, and achieve a faster app-to-offer turnaround. Last September we launched RomaFLOW, a fast new processing channel designed to cut processing timelines for straightforward cases. It has fewer stages, requires less documentation, and uses enhanced technology to help move cases smoothly to offer and completion. It
has slashed our processing timescales without sacrificing the personal service and expertise that brokers trust us to provide. And we’re not finished. We have a technology roadmap for the next two years. We are working with the right partners to make that happen. This will lead to huge improvements for brokers as well as giving our colleagues more time to focus on the complex cases. We don’t believe that bespoke underwriting and technology are mutually exclusive. In fact, the better our tech, the more personal the service we can provide. At Roma, we have the confidence in our experienced underwriters to give them genuine autonomy over decision-making. We know they will underwrite the applicant as well as the asset because they understand how to assess risks and mitigate them, and this only comes with experience – there is no substitute.
Best of both worlds We’ve become faster and easier to work with over the last 12 months, but we still believe in lending less ordinary, and we will always take a view on complex cases. Roma Finance has transformed over the last year. In 2022, we’re bigger, better and bolder than ever. Brokers now get the same personal service, expertise and experience they’ve always trusted us to give, but now we’re faster, easier to use and have a wider range of product options. You don’t need to sacrifice speed for personal service. You can have it all. NACFB | 17
Compliance
Untangling the web Explaining commission disclosure rules on your website Nina Morgan Compliance Officer NACFB
Rob Levitt Compliance Officer NACFB
W
hen carrying out Minimum Standards Reviews (MSRs) with Members over recent months, we have seen a developing trend which we are keen to nip in the bud. It relates to disclosure information, and how and where it is displayed on Members’ websites. From our perspective we are seeing a lack of sufficient information, so this article serves as a gentle reminder of what you need to consider. Whilst we are predominantly discussing website content, do bear in mind it could also relate to brochures and other types of literature including direct mail. Disclosure information is covered by the FCA’s rules and regulations regarding financial promotions, and it is an extremely important part of treating customers fairly, with openness and transparency. Adhering to these rules will ensure that your clients are given information that is clear, fair, and not misleading. Remember, the FCA has the power to remove any financial promotion that does not comply with the rules and guidance. Aside from the obvious reputational damage that can result from having your financial promotion removed, your firm could be fined. 18 | NACFB
Disclosing commissions serves to highlight to potential and existing clients the nature of your firm’s relationship with lenders including any commissions or fees you may receive from them. In general, the FCA’s rules on this topic are high-level asking firms to make clear the existence and nature of commission arrangements with lenders where these might affect the client’s decision-making when thinking about which lender to use. The disclosure must cover how the arrangements could affect the price payable by the customer. Brokers must also ensure that the disclosure is prominently disclosed and not hidden away on a part of the website that is rarely visited. For example, for some brokers, the following statement may be suitable: “[Firm name] is a broker not a lender. We are independent and have whole of market access. We may receive commissions that will
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Disclosing commissions serves to highlight to potential and existing clients the nature of your firm’s relationship with lenders including any commissions or fees you may receive from them
vary depending on the lender, product, or other permissible factors. The nature of any commission model will be confirmed to you before you proceed.” Clearly when using this type of statement, you also need to remember your commitment to provide confirmation of the nature of commission arrangements before the client proceeds with your recommendations. This is typically provided within the suitability letter. Interestingly, the rules do not require brokers to disclose the actual amount of commission due from the lender, but the NACFB recommends that full disclosure in this regard is best practice. We consider it will only be a matter of time before the rules are amended to reflect this requirement. Brokers must also disclose their status on their website (and other documentation), i.e., inform the client of any governing regulators including registration details. This is required by the FCA, the
Information Commissioner’s Office (ICO) and Companies House, and should reflect your legal status (limited company, sole trader etc.), trading style, registered address (or trading address if not incorporated) and FCA permissions (directly authorised or appointed representative). Lastly, brokers should have in place systems and controls to manage effectively the risks posed by providing misleading information to customers. This could be as simple as having a process in place whereby your disclosures are checked and approved before being published – and reviewed regularly. NACFB Members have access to a variety of template documents which set out processes relating to disclosures and suggest appropriate wording. Log in to your account via nacfb.org for more details or get in touch with the compliance desk if you would like further clarification.
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Ask the Expert
Developing cyber resilience
Q Detective Superintendent Nick Bell Chief Executive Officer National Cyber Resilience Centre Group
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aunched last December by UK security minister Damian Hinds, the National Network of Regional Cyber Resilience Centres Group (NCRCG) was set up to strengthen the reach of cyber resilience across the business community. The Group funds the delivery of affordable cyber resilience services to SMEs through a network of regional Cyber Resilience Centres (CRs) and helps to make businesses safer, more secure, and more resilient. We asked Nick Bell to explain more.
Tackling cybercrime sounds very specialist. Shouldnʼt it be left to IT professionals?
Over the last decade it has become a fundamental priority for any business leader. An appropriate and effective cyber strategy needs to be integral to the operation of all organisations. The police have a responsibility to support business with cybercrime and a new, cohesive national strategy is being launched this month by the Commissioner of City of London Police, Angela Maclaren. 20 | NACFB
Should SMEs be worried about cybercrime?
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Every organisation in this country is potentially a target for cyber criminals – whatever its size, location, or sector. Unfortunately, the smaller organisations too often bear the brunt of cybercrime and don’t have the knowledge, capacity, or resources to maintain any pretence of business as usual during, and in the aftermath of an attack. The good news is that the CRCs are there to help businesses, especially SMEs including those who are working at home or who may be sole traders.
Why now?
CRCs bring together public and private sector and academia to support the needs of business. There are specialist police leading each CRC which deliver tailored, trusted, affordable and high-quality services to local businesses; ensuring consistent national guidance, support, and assistance gets far closer to those who really need it.
Over the last 18 months, this threat to business has increased galvanised by a change in behaviours and crime patterns because of the pandemic. In March 2021, the Department for Digital, Culture, Media & Sport’s (DCMS) Cyber Security Breaches Survey found that almost two-fifths of businesses and over a quarter of charities reported having cyber security breaches or attacks in the previous 12 months, with one in five ending up losing money, data, or assets.
How many regional CRCs are there? There are ten centres which operate at regional level across England and Wales mapped according to the location of each police Regional Organised Crime Unit. The
What resources do they provide to SMEs?
We have set up a cadre of students from 42 universities who are mentored and supported by our organisation. They provide affordable, good, trusted services to businesses with security awareness training, corporate and individual internet discovery, vulnerability assessments, security and cyber business continuity reviews. Brokers and their SME clients can find more detailed information on the regional websites via nationalcrcgroup.co.uk
How do you see the future of cybercrime, security and SME’s ability to tackle the issues?
Cybercrime will continue to evolve. The CRCs and other initiatives are continually seeking to understand how best to protect important business assets and improve defences against cyber criminals. Policing, private sector and academia will be working together to ensure that business communities are protected as well and as fully as possible.
Special Feature
Advertising Feature
Time for a refurb? Preparing for changes to EPC rules Jaxon Stevens Head of Sales South Sancus
Mel Fourie Head of Sales North Sancus
E
arlier this year, following many conversations with our brokers and borrowers, we launched “Refurb by Sancus”, offering a highly adaptable refurbishment product to the market. We were seeing a surge in demand for refurbishment loans as developers and property owners prepare for coming government directives. These are aimed at supporting future sustainability through the reduction of properties’ carbon footprints. These new EPC (Energy Performance Certificate) rules will come into force in 2025 and are already driving both purchasers of new investment properties and established landlords to make changes to ensure they fall within the new government guidelines. A property is given an EPC rating when the property is constructed, sold, or let to show how much energy it uses, how environmentally friendly it is and how much energy bills will be expected to cost. Upgrading a property to an acceptable ‘C’ rating, could cost the property owner tens of thousands of pounds, hence the demand for our refurbishment product and lending expertise in this area. 22 | NACFB
The new legislation will require properties to have an EPC rating of ‘C’ or higher. Currently, two thirds of the private rented sector are known to have an EPC rating of ‘D’ or lower which equates to 2.3 million properties across the UK. Fines of up to £30,000 can be expected from 2025 (Lettingaproperty.com “EPC Certificates for Landlords 2022: EPC”) under the new legislation with the added complication that it may also become harder for owners or buyers to raise finance against these assets. We are also seeing an increase in demand for both refurbishment and development loans brought about by the extreme shortage of available housing stock which is very much in the news. The government is now targeting the creation of 300,000 new dwellings a year by the mid-2020s, however, already 2020/21 fell short, at just over 216,000, leaving a shortfall of 84,000 properties in that period alone (House of Commons Library Research Briefing “Tackling the under-supply of housing in England”). Estimates also show there were 238,306 wasted long-term empty homes in 2021 (Action on Empty Homes), properties that could be used to support the national housing shortage. Through retaining the existing structure, refurbishment requires less materials and therefore less embodied carbon (the carbon footprint of a material) which, depending on the build, could show a significant saving in annual operational carbon emissions for the project (Circular Ecology “The Environmental Sustainability of Existing Buildings: Refurbish or Replace”). There has also been an increase in residential refurbishment and conversion enquiries, including varying property schemes, some encompassing retail or office space conversions to residential as well as increase in HMOs (House in Multiple Occupation). This creates a greater number of opportunities for people to be able to access more affordable
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Currently, two thirds of the private rented sector are known to have an EPC rating of ‘D’ or lower which equates to 2.3 million properties across the UK
housing. There has also been an increase in single use residential properties being converted into multiple self-contained living spaces. Recent relaxing of planning rules, including changes to ‘Permitted Development Rights’ allow certain building works and changes of use to be carried out without having to make a formal planning application (Ministry of Housing, Communities and Local Government – Permitted Development Rights for Householders). Examples include: • Household improvements, including internal remodelling, converting a garage, loft conversions and one or two storey extensions; • Class E conversions – The ability to change the shape of the high street, encouraging conversions between common uses for high street buildings, such as financial and professional service properties into cafes or restaurants. More recently this has further changed to allow buildings to be converted to residential use under permitted development. There are a few restrictions, such as the site must have been vacant for three months, it must have been in commercial use for two years beforehand and under 1,500 meters squared; • Agricultural buildings – Prime source of opportunity as many are under used or abandoned entirely with real value to be added by converting to residential.
shortages in housing stock and the changing shape of the high street with the underlying drive of sustainability have all been behind the launch of “Refurb by Sancus”. Sancus offers a higher day one leverage and 100% of refurbishment costs to enable investors and developers to access more property opportunities faster, in an ever-changing market. By having 100% of the refurbishment cost funded it allows a better standard of finish and quicker access to market whether being let or sold, helping investors to recycle their cash more effectively before moving on to their next project. For more information or to speak with a member of the team please email contact@sancus.com
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Upgrading a property to an acceptable ‘C’ rating, could cost the property owner tens of thousands of pounds, hence the demand for our refurbishment product and lending expertise in this area
The combination of EPC rule changes, cost of living increases, NACFB | 23
Special Feature
On the record The voices that shaped your trade body
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o mark both the NACFB’s 30th anniversary and this very magazine’s 100th issue, we’ve collated a selection of 100 voices that have helped shape the Association and form what it is today. The collection of insights and reflections on the impact of the trade body features NACFB Members, Patrons, Partners, and the head office team, alongside representatives from other trade and industry publications. The selection is by no means exhaustive, for there
are many more individuals that have helped steer the course of the Association in the three decades it has helped to empower UK SMEs, but it provides a healthy sample size of perspectives. In a nod to the NACFB’s 1992 foundational year, this compilation of analogue insights is cassette themed, with the collation representing something of a lovingly curated mixtape; pulling together and uniting elements from across the entire industry. Much like the NACFB itself.
“I hoped to use my NACFB membership to further my credibility and recognition in the industry and gain access to varied lenders. Since joining, I have been more appreciative of the structures it has allowed me to implement within my business. Being part of the NACFB community has supported my business growth and elevated my network in ways I had not anticipated. I particularly enjoyed the annual NACFB Expo and look forward to meeting lenders and peers there again this year.”
“I treated joining the NACFB as part of the infrastructure in setting up Finance House Solutions Ltd, however it was not until a year later having moved from appointed representative to directly authorised that I realised the true value of being part of the Association. I have used the compliance and training services to enhance my firm’s standing in the marketplace, clients welcome the fact that as part of the NACFB I am not only maintaining my professional service standards but I am also encouraged to persistently raise them.”
Michael Savage, Channel Finance
Perminder S. Ghataore, Finance House Solutions
“For me personally, the NACFB is a community where brokers and lenders come together to deliver the best service and products available to the SME market. Being a Member of the Association enables me to tap into a wealth of experience, knowledge and assistance whenever I need it. The annual NACFB Expo is one of the best attended events in the calendar and is certainly the most worthwhile. It’s a privilege to be involved in the continuing evolution of a really effective trade body.” Amanda De Courcy, NACFB Board Director
NACFB | 25
“Over the last five years, there is no doubt that the industry landscape we continually navigate has evolved dramatically. Challenging times and regulatory changes have meant the NACFB’s reliable industry voice is all the more appreciated. From sales through to marketing, the Morning Briefing has provided wider market insights that play an integral role in supporting our business. It is this, combined with compliance guidance and unity in the form of shared opinion, that drives best practice and supplies us with direction.”
“For me, the NACFB isn’t defined by the amount Members deliver each year for UK SMEs. Nor should it be measured by panel sizes or the wealth of Patron product ranges. It should instead be marked by the quality of engagement and collaboration between brokers and lenders. Those foundational relationships underpin everything we do and sustain the Association’s ability to adapt over time. This drives the trade body’s long-term staying power and continued resilience.” Kieran Jones, NACFB
Tom Perkins, Charles & Dean
“I am so proud of my colleagues at the NACFB and how we have worked together through the challenges of COVID over the last few years. Since joining the head office team four years ago, I have witnessed first-hand the fantastic achievements the trade body has delivered whilst continuing to grow the organisation in the right areas to support our Members. I believe having great people coupled with an understanding of the membership, powered by a desire to succeed is why we are here now celebrating 30 years of doing just that. Here’s to another 30 years – but I do hope to have retired within the next ten!” Caroline Boughenou, NACFB
“Having spent 44 years in the commercial finance industry, I am proud to be a director of the NACFB. My varied experiences have enabled me to give something back to the industry by working as part of a strong team. We have helped increase knowledge and influence government policy with lenders in tandem. In turn, this has helped our Members be the best that they can be by ensuring that we are both setting and delivering the highest possible standards to clients and lenders alike. Moreover, I’m the only board director supporting a proper football club, the mighty Crystal Palace FC.” Mike Deacon, NACFB Board Director
“From the first class support the Association gives to its Members in navigating the regulatory, political, economic and social changes, to the excellent Commercial Finance Expo and the brilliant annual Patron Awards & Gala Dinner – a must attend for many across our sector – the NACFB continues to be both a supportive and forward-thinking Association. Happy 30th birthday!” William Lloyd-Hayward, Brightstar
“Norman, James, and the rest of the NACFB crew have been on hand to offer advice, provide an external opinion or help us contextualise strategy. Their compliance support has been key to the development of our business and kept us ahead of the curve with regards to major regulatory events like the motor finance review. Membership of the NACFB has given us credibility, and a voice with the really big players in this marketplace, including the regulator, insurers, and many major banks.” Tony Smith, Creative Funding Solutions
“The NACFB’s Morning Briefing is one of my first reads each day. I find it an excellent way to find out what lenders are offering and keep abreast of industry updates. On numerous occasions we have picked up new lenders from the briefing, set up with them and completed deals for customers that we would otherwise have missed out on.” Nick Ray, Claratus Commercial Finance
“The NACFB has been with me all the way in my professional journey in the world of commercial finance. Starting as a broker, for me the NACFB was not only a recognised standard for professionalism of the industry, but a source of information for the finance community. When I moved over to the lender side, and subsequently became a Patron lender, I saw first-hand the benefits of an industry body and a relentless drive to improve quality standards.” Mike Underwood, Adsum
“We feel proud to be part of the NACFB and the trademark of quality it represents. Our growth journey has been similar to the evolution of the NACFB over the past years and we’re a keen advocate of the high standards that they drive. Events such as the annual award ceremonies and NACFB Expo have given us access to a family of lenders that want to support our clients and the connections that being part of the trade body bring really drives our business forward.” Steve Barrett, South West Business Finance
“As a new employee of the NACFB, I can wholeheartedly say that I have never felt more welcomed and accepted by a team as I have done since joining. The Association is a brilliant place to work where everyone is very friendly and accommodating. The level of support provided to its Members and Patrons really is second to none and it’s no different when it comes to its employees. There is no doubt that the Association’s success will continue.” Samera Sadique, NACFB
“We recognise how important it is for any business to invest in enhancing the profile and reputation of its industry. This is particularly true in non-regulated markets, such as commercial finance, where trade associations take on a more crucial role in upholding high standards and so we see membership of the NACFB as an integral part of our business that helps us to grow our market and explore new opportunities. It also provides a valuable channel of communication with lenders and enables more open and constructive dialogue right across the sector.”
“My passion for and involvement with the NACFB stretches over 23 years. I proudly recall organising the sponsorship from Patron Aldermore, back in 2010, which enabled the Association to relocate from Exeter to London. My proudest memories were being chief executive, working with the team to restructure the business. Lenders and brokers alike need a trade body to lead from the front in professional standards for our industry and the NACFB has been ever present over the last 30 years.”
Michelle Westley, Brightstar
Rob Lankey, Chordis Capital
“Commercial finance enables businesses to invest and grow, helping to deliver jobs across the country. Brokers are an important part of the lending process, providing expertise to help businesses find the right finance options that best suit their needs. Through the NACFB, UK Finance and our members have been able to foster stronger relationships with commercial brokers and collectively deliver the best support for customers. This was particularly crucial during the pandemic, where the NACFB played an essential role in what was a rapidly evolving situation.” Stephen Pegge, UK Finance
“When I think of the word ‘association’, I think of networking, connecting, and conversation. These three words are key in all that we do as a business and being a Member of the NACFB facilitates that. Reflecting on the last two years, everything was online. We were itching to meet our brokers face-to-face again, but couldn’t. Our first in-person event since COVID-19 was the NACFB Expo in 2021, and it kick started those much needed in-person conversations again with our valued and expanding broker network.” Ian Duffy, Accelerated Payments
“Cambridge & Counties Bank values highly its long-term relationships with commercial finance brokers. Along with our direct customer base, brokers are at the centre of our business model and growth strategy. The relationship with the NACFB has allowed us to build new partnerships and further develop existing ones, and we see the NACFB and its Members as key stakeholders in our ambitious, client-centric UK expansion programme. Looking ahead, we look forward to building on this momentum and these underlying partnerships.” Simon Lindley, Cambridge & Counties Bank
“We have been a Patron of the NACFB for many years and it is great to see the Association going from strength to strength. Virtually all our business comes from brokers and many of these are NACFB Members. A good broker makes all the difference to the case – good broking and good lending practice generally result in more cases completing more quickly! Here’s to the next 100 issues of the magazine.” Daniel Sproull, Devon & Cornwall Securities
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“Membership of the NACFB enabled us to make the smooth transition to FCA approval. The Association further helped to widen our network of reputable funding partners and improve our technical knowledge. I think that the era of single adviser practices is drawing to a close; but, I am sure, that the NACFB will continue to assist us on our journey forward and our evolution as a business.”
“The NACFB offers an inclusive and supportive network for funders and intermediaries to connect and grow together, which has been invaluable to Time Finance over the years. The NACFB has really evolved over time, building itself up to becoming an integral part of our industry. A great memory for us was at last year’s Commercial Finance Expo which gave us the first opportunity to showcase our new brand to the market and to connect with our industry.” Joe Ralphs, Time Finance
Sarwan Ghatoura, Montana Corporate Finance
“The NACFB Expo is always a highlight of the year for me – last year didn’t disappoint as we didn’t have a spare minute on the stand, talking to brokers new and old. In fact, if anything, it was too busy! I was trying to find a quiet corner to do a virtual interview and it proved harder than it would have at other events, note to self, don’t book in other meetings when at this best-in-class Expo!” Jamie Pritchard, Glenhawk
“Iʼd been aware of the NACFB since 2010 when I joined the industry but the day that the very first edition of Commercial Broker landed on my desk really made me take notice. Fast forward a few years and here I am, not only working at the NACFB but writing for the magazine. So far, it’s been a great experience which has broadened my knowledge and deepened connections such that peers are now friends. Thanks NACFB.” Jenny Barrett, NACFB
“As a bank for charities, we are a niche lender and an organisation that has only lent for ten years. Because of our unique outlook being a Patron of the NACFB has been a real asset in helping us grow in the sector we operate. It has been a delight for both us and NACFB Members to see the amazing work our loans deliver. Real banking with purpose.” Scott Newman, CAF Bank
“Having only recently joined as a Member, we have continued to use the materials and guidance to improve both the knowledge and competence of our adviser network. The NACFB is very much a family, and the support as well as continuous involvement of new lenders has helped us expand our proposition to clients. Being part of the NACFB has so many benefits, and I would encourage those that haven’t signed up as yet to speak with the supportive team who have been instrumental in John Charcol taking the next step in our development journey.” Nicholas Mendes, John Charcol
“The NACFB and Alternative Bridging are both 30 years old this year and over the last three decades they have together been firm fixtures in a short-term property lending market which has evolved to deliver a much broader range of solutions for commercial finance brokers and their clients. During that period, the Association has played a vital role in raising and maintaining standards, benefiting customers, intermediaries, and providers alike. The sector is stronger with such an effective trade body at its heart.” Jonathan Rubins, Alternative Bridging Corporation
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“I have only recently had the pleasure of joining the NACFB, from the offset it was clear the company prides itself on continually wanting to do better for the Members, Patrons and employees. I’m excited to be involved with the organisation’s future and to see the continued development of its offering and events output.” Ellie Eastway, NACFB
“One of the early adopters of our service, the NACFB instantly recognised the innovative nature of what we were doing and have encouraged us on our journey and supported us wholeheartedly in spreading the word with their Members. It’s a partnership built on insight, honesty, trust and adding real value to their Members and we’re proud to be an Associate Patron! Congratulations on 30 years, here’s to many more.” James Piper, Lightbulb Credit
“We have been a Patron of the NACFB since 2010, we love how they pull the industry together effortlessly at events and appreciate the knowledge and support offered to us at any time. The daily bulletin has been a great addition, plus the refreshing broker magazine itself has changed the game in my view. Great work over the last 30 years and I look forward to many more as a Patron lender at Funding Circle.”
“Business Funding Expert operates in the non-regulated lending market but that doesn't mean I should not keep proper records. Membership of the NACFB has helped me with templates covering subjects such as GDPR, commission agreements, complaints policy and initial disclosure documentation to name but a few. I've instinctively rallied against encroaching rules and regulations but in today’s litigious world I believe you owe it to yourself, your colleagues, and your customers to show you do things correctly, professionally – and more importantly – honestly. My NACFB membership helps signify that I am doing just that.” Gordon Duffy, Business Funding Expert
Jeremy Crinall, Funding Circle
“With Ultimate Finance celebrating its 20th birthday and with the NACFB turning 30, that’s a lot of collective years committed to supporting the funding needs of SMEs through the broker network with events, lobbying, awards, benchmarking, and surveys to name a few. As a Patron, we’ve enjoyed a fantastic relationship with the NACFB, bringing high quality brokers and lenders such as ourselves together to support business ambition. We look forward to many more years of keeping business moving together.” Adrian Stalley, Ultimate Finance
“Trade associations play an important role in any industry, helping to raise standards, defend reputations and represent the interest of our customers when it comes to regulatory changes. As an association representing short term mortgage lenders, our interests naturally dovetail with the NACFB and its membership of commercial finance brokers and we have been proud to work in partnership on a number of important issues over the years. We are particularly keen on progressing a deeper level of education for all participating in our market sector. We look forward to continuing this aligned approach to further the interests of our industry into the future.” Vic Jannels, ASTL
“Setting up our business in the midst of the pandemic presented many challenges. Our ethos and that of the NACFB are very similar and we were very keen to ensure that we embraced the highest industry and regulatory standards to provide an outstanding proposition to our clients. The NACFB Code of Practice has aided this process as it provides confidence to our clients who can clearly see that we are part of a recognised trade body.” Paul Stamp, Ultimate Funding Solutions
“I recall my first NACFB exhibition in 2010, in the credit crunch era. It was like a wake with literally a few tables of sausage rolls and quiche in a small room and everyone looking shell shocked. In many ways this was my important memory as I had just started my business but didn’t feel alone. Fast track to today and the annual NACFB Expo is like the Mardi Gras, a fantastic tribute to the hard work of everyone involved.” Andrew Pritchard, Simple Commercial Finance
“NACFB membership has been of immense benefit to us. Apart from gaining access to the Association’s Members and having opportunities to meet them and demonstrate our proposition on the road, or at the always well attended and organised NACFB Expos, the principal bonus for us has been the credibility that membership offers. It is clear that being able to say that we are a Patron has only added to our appeal among brokers, including those who are not themselves NACFB Members.” Narinder Khattoare, Kuflink
“My highlight simply has to be pulling pints at the Ortus pub stand at the NACFB Expo in 2017. It was a hot day and perhaps unsurprisingly we were the busiest stand of the day!” Richard King, Ortus Secured Finance
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“We have been NACFB Members for over 16 years and it is great that our industry has a professional body that represents its Members on so many fronts. The fact that the standards remain so high have certainly helped to solidify and enhance the reputation of the industry as a whole. The fact that the vast majority of the board run brokerages also enables them to understand what makes a good broker and brokerage, which is great to see.” Darren Willoughby, 2XL Commercial Finance
“As an alternative lender, Business Enterprise Fund (BEF) works closely with NACFB Members to deliver finance to businesses who are unable to secure finance from high street lenders. Brokers play a vital role in introducing us to the businesses who need our help the most. This was clear during the recent COVID-19 pandemic when we worked hand in hand with brokers to support a record number of clients. Brokers continue to be key partners as we work to support businesses during this recovery phase.” Stephen Waud, Business Enterprise Fund
“As a new lender in the marketplace, our partnership with the NACFB has been crucial in terms of the expertise and counsel they offer us, as well as providing a powerful platform to help us reach and build strong relationships with advisers. Like Recognise, the NACFB shares a passion to promote the importance of brokers in business and commercial finance, as well as a desire to further improve the quality and the professionalism of the sector for the benefit of all our customers.” Angela Norman, Recognise Bank
“Being a Member of the NACFB has afforded me credibility for my business and the comfort of belonging to a recognised industry trade body. I often tell clients I’m FCA regulated and part of the NACFB and this provides peace of mind to prospects and the wider professional community. I appreciate the work they do lobbying government to further support SMEs and I know their voices are being heard. I love the daily bulletin that comes out each day and I regularly use industry news to share with clients, which can lead to winning business.” Tamara Renshaw, Synergy Commercial Finance
“It's been great to see the NACFB grow over the years, bringing a much-needed sense of community to the industry and brilliantly bridging the gap between brokers and lenders. They are a trusted voice that challenge on key issues and open the door to new opportunities. The NACFB have also been a great support of Allica Bank. And are also pretty good at throwing a party, the Annual Gala Dinner is one of my favourite industry events of the year!” Charissa Chang, Allica Bank
“One of the first things I arranged back in 2018 when I launched VIBE was our NACFB membership. Being in a non-regulated space, it was important for us to be part of the Association whilst demonstrating the minimum standards. The support we’ve received since has been amazing. Winning the Rising Star Award at the 2019 Gala Dinner will always stay up there as one of my best memories. I’ve since been elected as a board director, I can’t wait to see what we can collectively bring to shaping the future of the NACFB.”
“The NACFB has been great at educating, campaigning, and sharing best practice ideas so that simple funding solutions are better understood and accessible to the market. I am proud of our NACFB membership which has been held since 2017, and this Association is certainly the gold standard for trust and professionalism when offering commercial solutions to our customers. The team and I at Crystal wish the NACFB continued success and encourage any intermediary or lender operating in the commercial sector to join the community.”
“KSEYE greatly values our partnership with the NACFB, which has aided us in forming strong relationships with many high-calibre property finance brokers. Working with qualified brokers ensures a reliable flow of business and provides reassurance that information they provide is accurate and that clients are treated in a professional and timely manner. Having good quality introducers speeds up transactions - something particularly important for bridging finance. We look forward to continuing to develop relationships with new and existing NACFB Members.”
Kim McGinley, NACFB Board Director
Jason Berry, Crystal Specialist Finance
Charles Creak, KSEYE
30 | NACFB
A big congratulations on your 30th anniversary and on the 100th edition of the Commercial Broker magazine from the team at Tradeplus24. I have worked with NACFB over the last three years via multiple lenders and the NACFB has never failed to provide a bridge between the brokers and the lenders. The NACFB has a very special place in the heart of many salespeople when it comes to the NACFB Commercial Finance Expo in Birmingham, plus the cherry on the cake with the end of year Gala Dinner. Keep up the great work!
“We have seen the NACFB play an important role for brokers and Patrons alike throughout our 25 years as a Member – particularly in terms of how that support results in the sector better servicing the needs of UK businesses. In a field where knowledge and expertise are so vital, being a Member of the NACFB gives our wider audience comfort that we are trustworthy, professional, and adequately ratified to add true value to their business.” Evette Orams, Hilton-Baird Group
Kevin Vendel, Tradeplus24
“Avamore Capital has been a Patron of the NACFB since 2016. Over the years, we have benefited from a wealth of events and opportunities to swap ideas and collectively tackle challenges across the industry. As a kitemark of quality for both brokers and lenders, it encourages accountability and a commitment to high operating standards across the deal chain. As the industry grows, the NACFB remains a fundamental part in its future; we look forward to seeing the power of the network expanding.” Sabinder Sandhu, Avamore Capital
“The ever-evolving world of real estate, both regarding regulation and transactional trends, impact our thought process into how as a lender we adapt our products and criteria. NACFB Members have their fingers on the pulse as to where the market is moving and therefore the synergies between us as a lender and the Members help keep us at the forefront. Having previously won the Short-term Lender of the Year award, the NACFB has always been an Association that has been close to our hearts and helped in massively raising our profile.”
“The Association did an amazing job during lockdown of keeping the industry connected. But the 2021 NACFB Expo and 2021 NACFB Broker Awards – the first major in-person events since restrictions were largely lifted – were such a brilliant opportunity to meet face-to-face for the first time with so many of the brokers Allica started working with since we launched to market in early-2020. I challenge anyone to find so many brokers in one place at the same time anywhere else.”
Tomer Aboody, MT Finance
Garry Wilkinson, Allica Bank
“The NACFB has given us access to a vast number of brokers that we may not otherwise have been able to reach, given that we’re currently a relatively small player in the commercial lending market. We have significant aspirations for growth over the next five years that will be driven by launching several new products over the coming months and providing lending across multiple asset classes. The contacts that the NACFB provides will continue to be hugely valuable to us.” Gareth Davies, Hodge Bank
32 | NACFB
“I’ve worked with Norman and the team for many years and seen the reputation of the Association go from strength to strength. Their annual NACFB Expo is the absolute pinnacle of excellence and it speaks volumes that we send our entire sales team as we’ve found it invaluable for making new contacts and networking. For any brokers in the commercial space, this is absolutely the best place to have your voice heard and to get the right support to build your business.”
“The NACFB has formed a key part of our broker support journey as their credibility and professionalism goes such a long way within the commercial lending sector. They’re widely recognised as the best conduit to form relationships with new brokers and as a trade body they’re proactive in their approach for change and raising issues that need to be addressed. We really enjoy working with the team and wish them every success for the future.”
Adrian Moloney, Precise Mortgages (part of OSB Group)
Emily Hollands, InterBay (part of OSB Group)
“I am extremely proud to be a part of the commercial finance industry. The breadth of knowledge, experience, and expertise across this industry is astounding. Each client’s requirements, objectives, and circumstances are slightly different and mirroring that each broker is slightly different and therefore unique. What a wonderful industry to be a part of! A broker once told me, “Commercial finance brokers do not only provide a matchmaking service but are marriage counsellors too.” Erica Meredith, NACFB
“As a recently appointed Patron lender, time will tell, but our first impressions are that the phones have rung – a lot. We are proud to associate with an organisation such as the NACFB – a kitemark of credibility in the industry. It validates our efforts to build a non-bank lending platform in the UK and confirms credibility in our relatively specialist offering. We look forward to broadening our offering to NACFB Members in the coming months and to the phones ringing even more.” Richard Boyle, BC Invest
“The NACFB welcomes Members of all shapes and sizes to feel part of a collective and acts as a mouthpiece to communicate key messages and issues to the wider market. This value was highlighted during the pandemic when interaction with lenders, the British Business Bank, the Bank of England and other government bodies became so critical.” Tom Bamber, 2XL Commercial Finance
“The NACFB provides us with access to great training material, advice, and support. Here at Cornerstone Finance Group, we use the NACFB Morning Briefing as a key part of our communication strategy in our commercial finance team and as a prompt to regularly contact key Patrons and funders. Not to mention, the opportunity to attend the annual NACFB Expo is an absolute must for the entire team.” Haydn Thomas, Cornerstone Finance
“The NACFB is one of the most respected organisations in the commercial industry, and being a Patron enhances our brand as a leading specialist lender. The Association’s Commercial Broker magazine allows us to inform the market about our products and services, and provides an unbiased platform for thought leadership from our experts. Our inclusion in its panel discussions, and access to its market insights and data are invaluable for us as we strategically grow our business for the future.” Sundeep Patel, Together
“The NACFB is an extremely useful provider of practical compliance support. We have drawn extensively on its wide range of sales documents and guides, which are free to all Members. We have so far had two audits of our business processes, one at the very beginning of our membership which was on site, and a second review carried out last year remotely. On both occasions the quality and thoroughness of review was excellent, and the nature of feedback very constructive.” Martin Swann, Try Financial
“Since becoming Patrons of the NACFB in 2016 we’ve transacted increasing business volumes with Members in each successive year. There is no doubt that for us it has been a positive partnership that has enabled us to reach a wide audience of introducers who have demonstrated commitment to high standards in their business dealings. It has also enabled us to ‘put something back’ in order to try to further improve the outlook for finance brokers and the customers they serve.”
“Watts Commercial Finance Ltd are proud Members of the NACFB. Our beliefs and passion to bring the highest possible standards to our industry are perfectly aligned. Couple that with our outstanding lender relationships that are enhanced and supported by our membership, add in the amazing training and compliance support and you have a winning recipe. The Association has grown, developed, and improved dramatically during our membership and we look forward to working with the NACFB for the next exciting decade and beyond!”
Robert Keep, Amicus Asset Finance
Phil Gray, Watts Commercial
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“As a proud Patron of the NACFB and winner of the ‘Socially Responsible Lender of the Year’ award for two years running, Unity Trust Bank would like to congratulate the Association on its 30th anniversary and the 100th edition of Commercial Broker. The NACFB attracts a range of high-quality, reputable brokers and intermediaries and we’ve been delighted to work with so many Members to ensure community-focused businesses have access to affordable finance. We look forward to many more years’ collaboration.”
“There’s a great deal of professional pride in the way UTB shows up for the NACFB Expo. I believe a stand is a great bellwether not only of how a business is performing but the importance it puts on those attending. Our relationship with NACFB and its broker Members has played a key role in UTB’s growth and success and maintaining those strong bonds is vital. We’re delighted to be returning once again, meeting old friends, and making new ones.” Mark Stokes, United Trust Bank
Linda Martin, Unity Trust Bank “Closely aligned during the last 30 years, the partnership between the NACFB and Business Moneyfacts has been both productive and enjoyable. In an industry where reputation is key, the NACFB should be proud of their standing in the sector as they continue to lead the drive for higher standards. On a personal level the NACFB staff members (past and present) are always a pleasure to work with and I look forward to maintaining these key relationships moving forward.” “I am incredibly proud to be part of the journey that continues to see the NACFB evolve into a modern-day trade Association. Its strengths lie in an incredible resilience and a steadfast determination which has seen it come through the banking crisis in 2008 and weather the storms of a global pandemic. I have no doubt that further challenges will lie ahead. However, with great people within our community, I know that Members, Patrons, and partners will continue to flourish and remain integral to the UK economy in supporting small businesses.” Norman Chambers, NACFB Board Director
“We joined the NACFB as its first Associate Patron in 2018 and since then we have valued and enjoyed working with the Members, Patrons, and their clients. The Association has proven to be a critical organisation in the commercial finance landscape, bringing together all market participants to help small businesses access finance and trade through the significant market headwinds faced over the last two years. The NACFB has given us a great platform to share our insights, products, and services.” Todd Davison, Purbeck Personal Guarantee Insurance
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Lee Tillcock, Business Moneyfacts
“As part of the NACFB trade body, Rainstone Money has gained a level of credibility and professional notoriety, evidenced by the increasing number of clients that have approached us since joining. As commercial brokers, we now rely on NACFB to source new lenders and products, keep up-to-date with the latest rate changes, as well as develop a broader understanding of the financial market as a whole.”
“As an intermediary-only lender, becoming a Patron of the NACFB in 2021 has boosted business volumes with Members in search of an agricultural funding specialist. Before becoming a Patron, we attended the NACFB Expo as delegates and always found it a great way of meeting our peers in the commercial finance arena. In 2022, we will exhibit at the Expo for the first time and very much look forward to introducing ourselves to the wider NACFB community.”
Grace Woolerton, Rainstone Money
Robert Bourn, Farm Finance
“I started working at the NACFB eight years ago, when the team were known as the famous five, and today, we have 19 staff. I am the first point of contact onboarding to the membership, and it is always great to meet those same Members and Patrons in-person at our events. The membership continues to grow year-on-year and every day we receive requests to add additional brokers and support/admin staff who can enjoy the benefits of membership. I am proud to say that we remain by far the largest independent trade body dedicated solely to commercial finance professionals.” Ann Walsh, NACFB
“Back when I joined the NACFB in 2013, the head office team was made up of just five staff members. The organisation was just settling in its new home after moving from Exeter and the annual yearbook was being sent out. There were piles of books in the office and a conveyer belt system to write seal and stamp the envelopes. Fast forward to 2022, we are now a team of 19 and growing, and our correspondence, information, and even some events are slicker and available online. We’re evolving.” Lorraine Jones, NACFB
“As a former Chair and founding Member of the NACFB, I have seen first-hand the progression of the organisation, the compliance support it provides, and the great relationships it helps to foster between brokers and lenders. At Omega, we fully support the ethos of the NACFB and have been a Member since our own formation – recognising the importance of shared professional expertise. As the Chair of the Bridging Committee for the last three years, I’m delighted that both Omega and the NACFB have been able to celebrate 30 years in business together.” Kevin Jones, Omega Group
“As a new lender offering a specialist approach to buy-to-let lending and bridging loans, membership of the NACFB is invaluable for Monument as it provides us with access to a broad selection of brokers who are both active in our market and have also demonstrated a commitment to high standards and customer focus. We have made use of the editorial opportunities to raise our profile and establish our strong credentials, and this has enabled us to hit the ground running, forging strong working relationships that have meant we have already been able to deliver solutions to many happy customers.”
“The NACFB has been an integral stakeholder in the development of the short-term lending industry, becoming an essential conduit between brokers and lenders. As well as becoming a staunch advocate for the lending industry, the Association has been at the forefront of promoting communication and education within the industry. Its events, highlighted by the annual NACFB Expo in Birmingham, are seen as industryleading events and a ‘must attend’ for both brokers and lenders alike.”
Conor McDermott, Monument Bank
Matthew Anderson, Arbuthnot Specialist Finance
“NACFB or Business Money? 1993, join NACFB, or launch Business Money? I did both and was an honorary Member. I had early day, lender boardroom access, and promoted NACFB vigorously as a dedicated, but fun-loving team, one that took the Association forward. I received an NACFB Lifetime Achievement Award in 2003: a hint to retire? One I ignored! Congratulations to those pioneers, some no longer with us, and those that seized, and now carry, the torch to light up what we see today.”
“Having been a Member of the NACFB since our origin in 2014, we highly value our association – enjoying the many sponsored events and contributing to success stories in our industry over the years. Our journey from broker to lender means we rely hugely on the success of the brokers and intermediaries we serve. Our industry has become more innovative, and the NACFB has been at the forefront of this change. We celebrate its contributions and are proud Patrons.” Mark Lester, Renaissance Asset Finance
“The NACFB has been a touchstone for me all throughout my career. I’ve been lucky enough to work for a number of lenders and with some excellent teams. Wherever I’ve worked, the NACFB brings a consistently professional approach to broker relationships. The NACFB team have always been a first port of call for any technical questions and always essential in helping build relationships with old and new broker contacts for me.” Mike Davies, YBS Commercial
Bob Lefroy, Business Money
NACFB | 35
“I am lucky enough to work on Commercial Broker magazine. The first edition I was involved in was the January 2019 edition, ʻIssue 66ʼ – the first edition of the rebranded, refreshed, renamed, ʻCommercial Brokerʼ magazine. Thirty-four editions later, I am still as proud, if not prouder, to work on the publication as I was back then. It remains a magazine filled with an inspiring mix of education, insight, and opinion.”
“Being part of the ongoing journey from my early years of involvement with the NACFB when it was based in Exeter, is an incredible honour. I am especially humbled by the way Members have continued to support our trade body as it evolves. Embracing the regulatory changes in our sector, supporting our minimum standards reviews, and championing our training and educational activities. The Association and its Members have never shone so brightly, at a time when UK plc needs us most.” Paul Goodman, NACFB Chair
Laura Mills, NACFB
“In my early days and months with the NACFB, a lot of the talk was about the future and how the NACFB was looking to move forward with the times. The great thing for me, is that is exactly what we are doing. Constantly looking at ways to improve our systems, processes, and membership offering to ensure we are giving our Members and Patrons the best membership experience possible. Saying something and doing it are two very different things. The NACFB is definitely doing what they are saying.” Rob Levitt, NACFB
“In the five years I have worked at the NACFB, I have witnessed continued professionalism, determination, and successes of our Members; they continue to be the beating heart of the commercial finance industry. This to me, then means the NACFB represents a badge of honour, a kitemark, providing assurance to the SME community that their interests are supported, to the highest possible standards.” James Hinch, NACFB
“As a source of knowledge and reassurance for myself growing into the industry the NACFB has been invaluable. Be it the morning round up of the financial news (saving me an FT subscription) to the ease of on hand support when you just need to ask someone a silly question, the NACFB has been there for me to lean on.” Nick Chwiej, Acorn To Oaks Financial
“In the surrealness of 2020, where everyone’s lives changed and the lines between work and home life blurred – we won at the inaugural NACFB Commercial Broker Awards. We sent bottles of Champagne to each team member to enjoy whilst watching the virtual ceremony, never really believing we would win. When we were announced as winners – we were stunned! This has definitely been our highlight. The prestige from winning the award greatly assisted our new business generation during such unprecedented and challenging times.” Ed Ogden, Knox Capital
“In my time at the NACFB I’ve seen our Association grow in so many ways. I’ve seen the team around me grow from a mere six in 2015 to the 19 we have today. I’ve seen the number of Members we serve, and indeed the ways in which we serve them, expand and diversify. And perhaps most importantly, I’ve seen a thriving commercial finance community grow in both output and esteem. I feel incredibly proud to work with such an amazing team, supporting such a vital sector.”
“I find the help and support of the NACFB for new and established brokers is vital to support the work we carry out in the intermediaries market. I have been involved with the NACFB Expo at the NEC which is a great opportunity for both lenders and introducers to come together and share a wealth of knowledge in the financial sector.”
“I have been involved with the NACFB for a number of years now, and the NACFB Expo at the NEC is always one of the highlights of my year. It’s a great opportunity to catch up with my broker contacts, and to make new connections. I get a huge amount of value from attending the event, there’s always such an energy in the room and a fantastic insight into the market in general.”
Nicholas Murphy, NACFB
Kate Silcock, Lloyds Bank
Jason Farren, Lloyds Bank
36 | NACFB
“As a youthful specialist lender to the market the NACFB has supported us throughout our journey helping to showcase our milestones and provide insight to its Members. NACFB has always provided a high level of support, advice and education for both Patrons and Members and this can be seen by the quality of its audience. We also use NACFB compliance training for our staff to ensure they are up to date on industry knowledge and requirements.” Elise Coole, Keystone Property Finance
“As a small but growing commercial broker, the NACFB has played a pivotal part in our success to date. It has enabled access to lenders and support services more quickly than we might have achieved independently. We certainly appreciated being shortlisted for SME Champion of the Year 2021, and the awards ceremony was a great team builder after a year of CBILS and BBLS! As a professional body, they are active in the market supporting our cause – a huge benefit!” Lucy Painter, Funding Round
“Joining the NACFB family has really benefitted Mercia. The NACFB is renowned in the business and finance communities for its professionalism and our experience with this Association has only cemented its good reputation. Its Morning Briefing always contains valuable observations and industry insights. The NACFB is well-known for its network of financial professionals, and the many new relationships we’ve formed with other lenders and brokers since joining has certainly been to our advantage as a funder.”
“At Apex Bridging, the NACFB has provided the opportunity for us to work with other professionals to build strong relationships within the sector. We like the transparency of the NACFB because we treat all our customers fairly. As we’re a small firm, we’ll never be a household name because we’re niche, but the support of the Association has given us the ability to demonstrate our credibility. The NACFB also ensures we’re up to date with news issues and developments.”
Sarah Hex, Mercia Asset Management
Sonia Shortland, Apex Bridging
Becoming an NACFB patron was transformational in the growth of Blackfinch Property. It triggered an immediate and material jump in the number and quality of new enquiries and contacts. Our first attendance at the NACFB Expo in 2019 provided the next step-change and we make sure we have a stand every time. The Association has become an important forum for us in understanding how the market is addressing issues and new ideas. This was particularly important when we all had to adjust to the pandemic. The annual Gala Dinner, where we have been fortunate to be shortlisted in the last three years, has become a key event for us to thank our NACFB brokers for their support in the usual manner.” John Hartigan, Blackfinch
“The bridging sector’s unregulated status gives lenders flexibility to deliver innovative solutions at pace, free from unnecessary red tape. However, it also raises questions regarding trust and quality. The NACFB is a valuable organisation in helping drive up standards and address those concerns. Having been part of the NACFB for many, many years, MFS has benefitted from being able to connect with brokers through a shared understanding that we adhere to extremely high standards and have a reputation for serving their interests and those of the borrower. The NACFB instils confidence and, by working closely with both lenders and brokers, continues to fuel progress in the commercial finance sector.”
“TREC Associates has been involved with the NACFB and has been one of its original full Members since its inception in 1992. We have seen many positive evolvements over this journey and time. The bringing together and representing of brokers, the promotion of Patron lenders, and the compliance support has been paramount. With the hosting of various annual events, it is always good to catch up and network with other industry professionals as well. It is good to see the NACFB still leading from the front. A big congratulations for the 30th year milestone and long may it continue.”
Tiba Raja, MFS
Tony Roberts, TREC Associates
Kunal Vaitha, REIM Capital
“The team at the NACFB has always welcomed commercial lenders with open arms, which is a trait we value at REIM Capital. Each time we attend the NACFB Expo, we immerse ourselves in networking opportunities and enjoy lots of laughs with over 130 fellow exhibitors. With maximum loans of £15 million, commercial bridging is a key service at REIM Capital, and we view NACFB as a positive way to unite lenders and brokers. Here’s to many more years of the Association!”
NACFB | 37
“When I started as operations manager, I was completely new to the industry, the NACFB has been amazing and helped me establish myself within the role. Working with Erica and the NACFB has enabled me to build confidence, understand expectations and receive support varying from terminology and definitions to templates and advice on reporting. The business has peace of mind that compliance training is from a trusted provider and that we have access to support and resources when needed.” Emma Traynor, Acorn Business Finance
“I’m immensely proud to see NACFB reach 30 and privileged to have been involved in so many memorable events over the years. Taking stock, the growth of the Association is impressive both in terms of coverage and the quality of support provided. As was the case with their predecessors the current leadership team are continuing to build a lasting legacy that benefits its membership, their clients and the UK economy as a whole.”
“I've worked with the NACFB for most of my career, and it's been brilliant to become even more involved as a business development director at Allica. I have particularly enjoyed discussing future funding as part of the Patrons’ Engagement Group, with a special focus on the environment. Having two young kids, this is a real passion project for me, and the work the NACFB is doing to promote environmental matters in financial services is both essential and very welcome.” Stephen Spinks, Allica Bank
Jeni Browne, Mortgages for Business
“Our brokerage was set up by both of us in 2018 to provide commercial and residential mortgages to SMEs. The NACFB is our most important partner since joining in 2019. The NACFB has been invaluable in providing us with both support and advice within the compliance and regulation space, its endorsement has been second to none for our business.” Mayuri Bhalsod & Naheed Niazi, Bhalzi Consultancy
David O’Hare, Lloyds Bank
“The NACFB gives us great insight into the market through the regular newsletter and magazine. Featuring in the magazine has been a great opportunity for us to showcase how we can support brokers. We attend the Association’s events which are a great opportunity to meet many of our brokers which helps to deepen relationships. I was lucky enough to attend the most recent Gala Dinner which was a fantastic event celebrating the growth of the commercial broker market.” Allan Gillson, Lloyds Bank
“We have been a Patron of the NACFB for many years and during that time have built a number of fantastic relationships with broker Members. It is brilliant to be a part of something, which plays such a significant role in ensuring bridging finance is considered as a leading option in today’s lending sector. Congratulations to the team at NACFB for achieving this milestone – we look forward to continuing be a part of your journey in the future.”
“Having joined the NACFB just under a year ago, it’s certainly been an interesting first year, one which has included some unique industry challenges. The NACFB made the decision to forge ahead and deliver in-person events in a very uncertain time. With the combined challenges of COVID-19 and a national petrol crisis to contend with I have been proud to be part of the team that delivered the first NACFB Expo post-lockdown. I look forward to developing and delivering great events in the future on behalf of the NACFB.”
Jonathan Sealey, Hope Capital
Rebecca McGarrity, NACFB
38 | NACFB
“As one of the founding brokers with the NACFB, it is our privilege to have been able to watch its evolution into a financial services community, facilitating how business works. Its Code of Practice drives trust and professionalism; one of my own clients reflected that our NACFB membership gave us credibility and kudos, and provided them with reassurance about working with us, especially when dealing in a non-regulated part of the industry. This direct positive impact on our clients shows how our business continues to benefit from working alongside the NACFB. Plus, they throw the best party every year!”
“The NACFB is about a lot of things, but it strikes me that the heart of the success is the value of the people involved. The enthusiasm and passion for the industry from the board; the dedication and commitment from the growing head office team; the buzz at all the events from Members and Patrons catching up, socialising and networking. A genuine collective desire to lead, develop, change and ultimately deliver for UK SMEs.” David Newborough, NACFB Board Director
“Working in partnership with brokers and their SME clients is at the heart of the way we work at Praetura Asset Finance. Being a proud Patron of the NACFB strengthens and enhances that relationship, offering a platform that no other association could offer in quite the same way. Becoming a Patron was one of the first things we did when PAF was founded. Much has changed since, but the NACFB has developed and grown. We’re excited for the next chapter!”
“As a co-founder, the NACFB has been an invaluable source of insight and support to me personally and to us as a business. It was with some trepidation that I turned up to my first Expo last year but any concerns I had soon evaporated within the warmth of its welcoming atmosphere. It was great to spend time with brokers, Patrons and the NACFB team – I left convinced that we should be part of it. Look out for our stand this year!” Hector Macandrew, Hydr
Ric Simmons, Praetura Asset Finance
“In our 25th year, Kingsway Finance is proud to be a long serving Patron of the NACFB. Our close link with the NACFB has enabled Kingsway to establish relationships with a great number of brokers throughout the UK. Whether it be advice with compliance or regular updates on industry issues and developments the trade has been vital to the success of Kingsway. The NACFB Expo is the first thing in our diary every year and long may it and the Association continue.”
“When Fleximize first opened its doors, the NACFB was exactly what you needed as the new kid on the block. We were immediately introduced to their valued Members and fellow lenders, and we’ve continued to learn and develop through its rich and diverse network. Whether through its events programme or publications, the NACFB is brilliant at getting the right people in the right place at the right time. When it comes to relationshipbuilding, you couldn’t ask for more.” Peter Tuvey, Fleximize
“Our membership of the NACFB has enabled us to continue strengthening our relationships with brokers meaning that, together, we can better serve borrowers. It’s a friendly, supportive community that really works in partnership with Octopus. The NACFB is on the ball with industry news and developments, and we love that we can attend their events including conferences throughout the year to further our commitment in making the lending process as pain-free as possible for brokers and their clients.” Steve Matthews, Octopus Real Estate
Mike Day, Kingsway Finance
“As a NACFB Patron, Redwood Bank receives a host of benefits including access to an unrivalled directory of UK leading commercial finance brokers. The quality of contacts, varied events, and communication platforms all help to deliver Redwood’s ‘it’s about time’ promise. With fast decision-making and quick turnarounds we use staff experience, skill and knowledge rather than AI, working alongside NACFB to be the business bank that supports both brokers and their SME clients.”
“The NACFB is a well-respected and trusted commercial finance trade body, one widely relied upon for professional development, business support and guidance. At Empire Finance, we value authentic relationships, and we appreciate the NACFB as a key facilitator in the overall connectivity between ourselves and lenders. The annual NACFB Expo is a great event for this! It is these relationships, coupled with up-to-date industry news delivered through Morning Briefings, that supports us with providing an informed and professional service to our clients.”
Gary Wilkinson, Redwood Bank
Jo Sutton, Empire Finance
“Shawbrook has worked alongside the NACFB ever since our inception over ten years ago, supporting the Association across a variety of important initiatives to assist the broker market and its diverse range of customers. We have made so many connections and friendships over the years with a group of people that share our passion for the development and growth of our industry in a sustainable and societally productive way. Happy 30th to the wonderful NACFB team, and we hope to continue working closely together into the future.” Neil Rudge, Shawbrook Bank
NACFB | 39
Special Feature
Advertising Feature
Back of the net Bridging finance to help investors achieve their goals Kara Williams Specialist Account Manager Together
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he need for fast, flexible finance is becoming increasingly evident, particularly as the property market becomes ever more competitive. That’s where bridging finance comes in, especially as it can be the solution when a buy-to-let mortgage isn’t suitable. At Together, we’ve been providing short-term finance for nearly five decades, and use underwriters – not tick boxes – to make common-sense lending decisions in short timescales. We have teams who are dedicated to both regulated and unregulated cases which enables us to underwrite hundreds of bridging loans every month. It’s how we’ve helped many entrepreneurial landlords take their first step as an investor or build property empires worth millions. Often the best opportunities have the tightest deadlines and yet it can take weeks or even months to secure a buy-to-let mortgage. If your clients have an opportunity that won’t stick around, perhaps a property being sold at auction for an attractive price, a bridging loan could allow them to act quickly – sometimes in a matter of days. What’s more, your clients could secure the bridging loan against a number of their existing properties, meaning they could borrow more and potentially expand their portfolio more than one asset at a time. Even the largest loans we underwrite benefit from the same speed and service as any other. And that’s down to our many years of experience as a team and as a business, as well as our strong network of trusted valuers and solicitors who can action things quickly. 40 | NACFB
Once those properties have been acquired and let out, it could prove easier for your clients to secure a mortgage and they’ll be able to use 100% of the rental income to demonstrate affordability, rather than risk relying on predicted income. Bridging finance could also support landlords carrying out renovations to a new or existing buy-to-let property including bringing the property up-to-date, or making energy efficiency improvements to comply with new EPC rating regulations which are due to come into effect from April 2025. Investors are often keen to complete the works as soon as possible – time the property isn’t being let out equates to a potential loss in income – and a fast, short-term finance solution could let them get started right away. Furthermore, if your clients are purchasing a property that’s uninhabitable (whether it’s in poor condition or fails the minimum
“
If your clients have an opportunity that won’t stick around, perhaps a property being sold at auction for an attractive price, a bridging loan could allow them to act quickly – sometimes in a matter of days
EPC rating requirements), it could prove more difficult to mortgage. Bridging finance could allow landlords to make refurbishments first and, once the property has increased in value, exit the bridging loan and potentially secure a mortgage deal with a lower LTV. Landlords looking to convert a property into a higher-yielding rental opportunity – such as a HMO, student accommodation, or holiday let – could use bridging finance in a similar way. The short-term loan could let your clients buy the building quickly, sometimes securing a better price for being able to do so, and reconfigure the property so it’s suitable for tenants or holidaymakers. Again, time is often of the essence when completing these refits,
especially where there are seasonal pressures (spring and summer for holiday lets, and the run-up to September for student housing). Whatever the case may be, you’ll have easy access to our dedicated underwriting team who’ll look at every case individually, and get back to you within 24 hours with either a decision, or to request the information they need to make one. So you can get your client’s application moving in the timescales that are right for them. For professional intermediary use only. Subject to a credit check and an assessment of your client’s individual circumstances.
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Industry Insight
Taking the plunge SMEs diving into the world of immersive experiences Martin Kennington Chief Marketing Officer 365 Business Finance
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mmersive experiences are taking the entertainment and leisure industry by storm. Post-pandemic, their steady rise in popularity reflects consumers’ desire to connect both virtually and in-person. From escape rooms and theatre to art exhibitions and dining experiences, the trend towards immersive entertainment is growing at an astonishing pace. It is a new approach to creativity. For venues it is an approach that is redefining how we interact. But it is not all glitz and glamour in the entertainment sector. From large multi-nationals to SMEs, hard work and financial strain define the industry, particularly following the impact of successive lockdowns. More than ever, how an organisation approaches funding can determine its future, and for SMEs, alternative finance can seem like an immersive experience – new, exciting, and redefining how businesses and lenders interact. Unsurprisingly, the development of virtual reality (VR) and augmented reality (AR) technology has fuelled the progression of immersive experiences further and assisted the rapid growth of the entertainment industry. The pandemic too, which brought enforced isolation, led to an unprecedented reliance on home entertainment. A National Library of Medicine study found that 73.7% of participants considerably increased their TV and internet consumption. Such online experiences have now branched out into innovative in-person events that are gathering pace. As the entertainment and leisure 42 | NACFB
sector looks to bounce back from COVID, immersive experiences are at the leading edge of this recovery. Here at 365 Business Finance, in 2021 we recorded a 375% increase in funding applications from businesses in the entertainment and leisure sector compared to 2020. Similarly, the average amount advanced for the industry also increased – up by 51% compared to pre-pandemic levels. Some of these businesses were SMEs looking to fund immersive experiences using our merchant cash advance facility. By way of example, towards the end of last year we provided funding to a business that was previously a ‘traditional’ bar focusing on food and drink as its primary source of revenue. The business pivoted and our cash advance enabled it to open an immersive themed experience, bringing in a new revenue stream through ticket sales. Another business used our funding to introduce an augmented reality retail experience, which enabled customers to ‘view’ their homeware items in their homes ahead of purchasing in the digital store. We have also funded escape rooms, supercar driving experiences, immersive theatre – even an axe-throwing experience. Over the next few years, we expect the number of enquiries for funding from entertainment and leisure sector SMEs will grow, particularly from businesses looking to offer immersive experiences. Brokers with clients in this sector should consider merchant cash advances as a borrowing option for their client because not only are they unsecured, but because repayments – which are taken from a small percentage of the SME’s future debit and credit card payments – mirror the ups and downs of the business, easing financial stress, so that if there is a quiet period, they repay less, and when business picks up, they repay more.
Lending decisions made by real people We don’t just look at credit scores when making a decision, the overall health and plans for a business are just as important. Our straightforward finance solutions help real businesses fund new equipment purchases or unlock the value held in existing assets to ease cashflow. Speak to us today, we’re here to help. 0330 057 3848
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Close Brothers Business Finance is a trading style of Close Brothers Limited. Close Brothers Limited is registered in England and Wales (Company Number 00195626) and its registered office is 10 Crown Place, London, EC2A 4FT.
Industry Insight
The long view Consolidating debt and leveraging personal assets Josh White Business Lending Lead Selina Finance
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mall businesses have had to navigate some extremely difficult situations in the past 24 months, and 2022 has only brought new challenges, with the war in Ukraine exacerbating supply chain issues that we had seen growing over the last year. But SMEs remain crucial to the economy. They account for 99% of all UK business and are key drivers of productivity and economic growth, so how are they faring in the current business climate? A third of SMEs examined by the Bank of England recently showed debt levels more than 10 times their cash balance. Cash reserves are unsurprisingly much lower for businesses than witnessed before the pandemic, across a variety of sectors. As we begin to see the winding down of the government’s Recovery Loan Scheme and CBILS loans begin to exit their interest-free periods, businesses are having to rethink how they finance their growth. ʻGrowthʼ is definitely the key word here. Across the market, businesses are seeking finance to grow rather than simply to keep themselves afloat. Unfortunately, the lending market has still not returned to where it was pre-pandemic in terms of credit availability for SMEs. In my opinion this is driving a trend towards businesses seeking out longer-term and more affordable funding arrangements. It doesn’t take a rocket scientist to understand that for SMEs to 44 | NACFB
thrive in a post-COVID world, funding needs to be more flexible. Fortunately, options for borrowing are increasing – the Bank of England has eased its regulations to challenger banks and a number of new banks and fintechs are popping up giving SMEs access to new types of funding. At Selina Business, we have seen an increasing number of businesses eager to reduce their cost of borrowing and wean themselves off of the high-interest, piecemeal financing options which they have relied on to navigate through a difficult few years for the economy. This type of finance has its place within the wider business ecosystem, helping businesses who need to solve sudden cashflow problems or seize opportunities at short notice, but it may not be the most suitable option over a longer period of time. Desire to consolidate multiple unsecured facilities has increased too, as has taking terms of 20-30 years, reducing monthly payments to further free up cashflow for businesses in the short-term. We have also seen a major uplift in business owners willing to leverage their personal assets to secure funding which is flexible, affordable and long-term. Understandably, they are not always eager to offer up personal assets as collateral to finance their business but the advantages, especially in price, can sometimes outweigh the risks. This is only likely to increase with 87% of business owners reporting increases in operational costs year-on-year. Flexibility in business borrowing becomes more key at this point, and borrowers want something that gives them a sizeable and flexible facility at a reasonable price. This is a trend I think we’ll continue to see grow, as the economic and political climate forces businesses to take a longer-term view of their finances.
COMMERCIAL FINANCE
Broker Voice
Come back around Are we entering a commercial renaissance? Jason Berry Group Sales and Marketing Director Crystal Specialist Finance
offering bespoke financial solutions that take into consideration the challenges of adverse credit, first time commercial landlords and the need for projection-based income assessments.
What are the main headaches for us?
T
here’s no denying that the commercial property sector has experienced a tumultuous few years. The earthquake of the pandemic is still being felt by commercial landlords, tenants, and investors alike. Even big-name investors have struggled to navigate the impacts of the COVID-19 lockdowns. However, despite these reverberations, the sector is seeing green shoots of, not just recovery, but also financial opportunity – leading many industry experts to ask the question, are we on the verge of a commercial sector renaissance? There’s no denying the confidence in commercial real estate is ramping up, with wealthy foreign investors expected to spend more than £1 billion this year, undoubtedly targeting office buildings where performance is predicted to be strong. With this interest in Britain's commercial sector beginning to soar again, we can perhaps view this as an indication that pent-up demand is now being released following the COVID-19 restrictions. This will be encouraging news for many, who spelled doom for the UK’s office market and its surrounding footfall businesses as many companies adopted permanent hybrid working styles rather than enforcing a full-time return to headquarters. However, this resurgence does not mean it’s smooth sailing for investors and brokers who still often come up against strict mainstream lending criteria and challenges with valuations. This is where specialist brokers and lenders have filled the vacuum, 46 | NACFB
For brokers, there are obstacles which may have to be negotiated. For example, following the uneasy market landscape, down valuations have been a challenge that create deposit headaches. In addition, brokers may come across the frustrations of ever moving goalposts and will be looking for certainty on decision from lenders with no ambiguity or vagueness. Not only that, ensuring competent and experienced lawyers are engaged for any specialist transaction is a must but even more crucial in the commercial funding space too. Far too often we see cases nearly fail due to a lack of expertise from the lawyer acting for the borrower. When trying to secure mainstream commercial finance, brokers will find themselves up against a variety of obstacles as mentioned above. Notably for more complex planning or change of usage, making it harder for them to secure the funding they need. This is where a specialist can help problem solve and drive your case forward. They can also provide you with access to exclusive or more bespoke products, meaning they can secure an even better deal for a client. But it doesn’t end with monetary value, us brokers can also leverage specialist’s expertise and guidance when choosing the best exit strategy and terms for our clients. With the reopening of commercial, retail and leisure industries, the developments and decisions made over the next five years will significantly shape the ongoing structure of the commercial property sector. Vital decisions, that if made wisely, can help assure a new greener, reinvigorated, and innovating sector – and a commercial renaissance that we are all hoping for.
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Opinion
The Ukraine crisis What does it mean for UK business? Emma Rowland Junior Policy Advisor Institute of Directors
Kitty Ussher Chief Economist Institute of Directors
A
side from the grim human repercussions, at first glance, the invasion of Ukraine would not appear to have a huge impact on the UK business environment: the UK economy is about twenty times the size of Ukraine’s and with UK-Ukraine trade worth £1.8 billion it is number 62 on our list of trading partners. We buy goods worth £1 billion from Ukraine, predominantly iron, steel and cereals and our foreign direct investment (FDI), although totalling £3 billion only accounts for 0.2% of the UK’s total outward stock. When adding the impact of sanctions on Russia, the economic disruption is potentially greater. Russia is the UK’s 19th largest trading partner, making up 1.3% of our total trade, with direct imports consisting mainly of metals and precious stones. Even larger however is the indirect effect through the sharply rising prices of goods Russia supplies into the global market, even if UK businesses themselves do not buy those goods directly from 48 | NACFB
Russia. Energy is the most obvious example, but we have also seen great volatility in prices of nickel as well as fertiliser components such as potash. Russia is the 11th largest economy in the world in terms of GDP, and the 5th largest in Europe. In 2020, it was the largest global exporter of mineral fuels, oils, and distillation products, to the tune of a massive $142 billion. Its primary exporting markets in these products are China, Netherlands, Germany, and Republic of Korea. Russia’s next largest exports are other commodities, precious stones and metals, iron and steel, and cereals. Contagion effects on British businesses are also felt through the financial markets. Asset managers holding stocks in Russian securities have written their value down sharply, if not to zero, and under pressure to sell if a market exists for them to do so. This may affect the value of insurance premiums, if not private pensions, in future. And a falling stock market affects the climate for IPOs and merger activity, which in turn is a medium-term driver of economic growth. In the longer term, however, the lasting impact on UK-based businesses will come from how households decide to behave. For those who were already unable to save, these are tough times and rising prices make it even harder to make ends meet. For those who have some disposable income, the key question is whether concerns around rising bills more than offset the desire to return to a ‘normal’ spending pattern now the pandemic is receding. The initial data showed both happening at once: retail spending rising while consumer confidence fell. The lasting impact on the UK economy will depend on which of these forces wins out in the months ahead.
BUY TO LET’S GO GREEN Reduced rates for energy efficient properties with our green buy-to-let product range. Applies to properties with an EPC rating of C or above. Landbay.co.uk
Opinion
Bricks beyond borders Servicing the international property buyer market Jamie Mills Business Development Manager BC Invest
I
n the first £120 million of mortgages we have written since launching our product in 2021, we noted several trends in international buyer behaviour which are worthy of further exploration. At BC Invest, we specialise in writing mortgages to non-resident investors purchasing UK property. The specialist sector is an extremely important one, which perhaps underpins the new build market more than many realise, especially as it becomes increasingly difficult to operate as a domestic landlord in the UK – but that’s an entirely different article.
Seeking value Unsurprisingly, most of the value was in London despite lower yields and recent limited capital growth when compared with the rest of the nation. Traditionally, the capital has been a resilient property market when compared with the regions and therefore we expect this trend of inward investment to continue – if you need proof of this continued performance just look at Berkeley Group Plc's share price through various recessions with their footprint being almost exclusively in this region. From a volume perspective, we see almost just as much demand from overseas investors buying in Manchester which some may find surprising. This is a city offering value for money, unrelenting rental 50 | NACFB
demand, and surprising capital growth of over 20% in apartments over the last five years. With the governmentʼs levelling up agenda now in full swing, it will be interesting to see whether other regional cities can catch up with Manchester, and equally, whether Manchester's impressive track record can be sustained.
Responding to appetite We also see consistent demand from international borrowers for two very simple things – speed of delivery; and transparency in doing so – highly valued attributes in this space. Your typical international borrower has a different appetite for rates and ultimately, they simply want a lender they can trust. As a result, we focus on our operational efficiency to deliver formal approvals within seven working days. Buying a property in the UK can be an opaque process (to put it politely) even for domestic buyers. With international purchasers, who are often buying new build properties with a known completion deadline, they need additional reassurance that their lender will deliver on time and brokers need to know they will do this repeatedly. Whilst this may seem obvious, unfortunately we often hear of borrowers who have been let down late into the process and can ultimately lead to contracts being rescinded. From a transparency perspective, a cross border transaction can exponentially increase the amount of misinformation as to what stage the process is at. Therefore, we speak with developers daily to update them on our mortgage applications with our mutual customers – when all parties are informed and matters are progressing, even if it is delayed, we find that developers are far less inclined to rescind contracts and more likely to work together as team.
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.
Listicle
5 tips for a winning award entry 2 Assign someone to the job
T
he NACFB Commercial Broker Awards 2022 have now opened for entries from Members. The awards return on Friday 23rd September to Edgbaston Cricket Ground in Birmingham. As ever, NACFB Members can enter as many of the relevant award categories as appropriate for no cost whatsoever.
Designate someone in your company as the coordinator who can take responsibility for collating information, contacting referred clients, consulting colleagues, checking facts, chasing up, writing the initial draft, and keeping an eye on the timeline and deadline. Make sure that person is given enough time to carry out this task along with all their other responsibilities.
1 Give yourself enough time
52 | NACFB
Get buy-in from colleagues It can be extremely hard to write objectively when writing an award entry, so ensure you enlist the help of your colleagues and managers. Teamwork really will help. This might be by providing useful information, proofreading and or giving feedback to help you create the best possible entry. Suggest a brainstorming session – you never know what interesting nuggets may appear that could set you apart from the competition.
Entries require the completion of a submission form outlining your case for receiving the award and, to help you make a successful entry, here are some top tips to assist you in completing a compelling entry. Best of luck…
Give yourself plenty of time to prepare your entry. The process invariably takes longer than expected, particularly if you need to get sign-off. Allocate yourself more time than you think you will need and enter early – a last minute rush is likely to impact on the quality of your submission. Make a start on gathering the information required for your chosen category some weeks ahead of the deadline. This year the entry deadline for the NACFB Commercial Broker Awards is Friday 24th June.
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5 3 Stay on topic Focus on what the judges are asking for in the judging criteria. Read the questions and guidance carefully, and ensure you target your answers to the question. Don’t just fill your entry with the contents of existing sales and marketing materials. Ensure that each submission is completely different and tailored to the specific category. Be concise, clear, and focused, with clean, easy-to-digest copy. Always write in plain English and avoid jargon, inflated claims, and unedited copy-and-pasting.
Follow the rules In the likely event that we are once again flooded with entries, please bear in mind that the judges, who give their time voluntarily and free of charge, will be on a deadline, so it’s important not to overstep the maximum word count requirements of each question. Each entry must be uploaded into the online entry form on the awards website, so it’s a good idea to use the relevant category’s downloadable Word document first to collate your answers. For more information about the NACFB Commercial Broker Awards 2022, visit commercialbrokerawards.co.uk
Five Minutes With
ive F Minutes with: Andy Smith Andy Smith Relationship Director CAF Bank Describe your role in ten words or less? Supporting property developers and social projects with much needed finance.
How do you make a difference? I listen to clients and brokers and use my 30+ years of banking experience to shape requirements into proposals that work for both bank and client and have the best chance of success.
In your view what are the key elements to a successful deal? When planning for any project it is vital to ensure that there is sufficient scope for contingencies for rising costs. Particularly in the current uncertain climate, costs rise and unless this is allowed for then problems can escalate.
What’s the most common reason for turning away a deal? The greatest barrier to a viable deal is unrealistic expectations of how much financial input will be required from the client. 54 | NACFB
If you were to start your own small business, what would it sell? I have a deep passion for watching motorsport having seen everything from F1 to lawn mower racing so it would have to be related to that. I particularly look forward to my annual pilgrimage to the Le Mans 24 hour race so linking in with that would be awesome.
What is your favourite SME success story? In an earlier role, I dealt with a small business owner whose business grew rapidly and he quickly recognised that he was practical rather than managerial so took the unusual step of employing a manager to oversee the business and manage him while remaining on the tools! The business thrived and I always respected the client for recognising his own skills and limitations.
What was the last great book you read? Strange choice this but Psycho the Stuart Pearce autobiography! Being in my
twenties during the period of the 90s and particularly spending far too much time in a pub watching football during Euro 96, his dedication and desire to do his best from humble roots was an inspiration to me and I’ve read that book several times (usually on a sun lounger!).
Where is your favourite place in the world? Brisbane Road, the home of Leyton Orient football club. As a third generation supporter and season ticket holder, I have experienced pretty much every possible emotion whilst at the ground. Watching lower league football provides a great connection to your club and its players and whether things are going well or, more usually, not, arriving at the ground always feels like arriving home.
What is the best live music experience you’ve ever had? Seeing Paul Weller at V96 in Hylands Park, Chelmsford was fantastic! I’ve seen him several times since but that was my first festival and holds special memories for me.
Buy to le t mortgag es
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