NACFB Magazine - December 2017 by NACFB

Issue 53 December 2017

The magazine for the National Association of Commercial Finance Brokers

Our gala dinner: the silver lining of 2017

In this issue

Autumn Budget

Three essential takeaways

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

Are you ready?

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

r experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better n better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation r people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better ilt on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on tion built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge r innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better uilt on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on edge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service r knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on e built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience r service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better ilt on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on ence built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people r experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better ypically, any opening remarks n better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation in the December issue of the r people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better NACFB Magazine would reflect ilt on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on upon the year behind us. You would tion built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge r innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better expect me to herald the successes uilt on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on the largest ever Commercial edge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on betterof service r knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better Finance Expo and gala dinner, on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on and the work our Members have e built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience done to help fund UK businesses. r service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better ilt on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on ence built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people While r experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on betterI am extremely proud of these n better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on achievements and the tireless support built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation work from the head office team, now r people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better ilt on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge isbuilt noton a time for reflection. Let me tion built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge assure you, the focus of your NACFB r innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better remains uilt on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on firmly fixed on the future. edge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service r knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better • Acquisition funding • Acquisition & Equity Release • Acquisition funding Our on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built25th on anniversary was an important • Mixed use investment property • 44,800 sqft industrial unit • 21,400 sqft mixed use investment e built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience milestone but it is the actions and • £4.7m loan, 12 month term • £3.4m loan, 9 month term property r service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better changes that we are implementing ilt on better service built on better knowledge built on better innovation built on better people built on better experience built on better•service built on better knowledge £11.5m loan, 12 month termbuilt on better innovation built on better people built on now that will shape how we, as an ence built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people r experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better Association, adapt to the challenges n better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on of the next quarter of a century. built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation r people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better ilt on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on We are growing considerably in tion built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge r innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better scale and complexity but we will uilt on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on carry forward our inherent values to edge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service ensure r knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better that we are the professional on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on association of choice for all commercial e built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience finance brokers and lenders, r service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better ilt on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on servicing the needs of business ence built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people borrowers and property investors. r experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better n better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation Over the coming weeks and months, r people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better you ilt on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge builtwill on see the Association clearly tion built on better•people built on better experience built on better service built on better knowledge built on betterand innovation built on•better people built on better experience built on better service built on better knowledge 19 unit residential scheme with • Conversion to 33 apartments 31 unit residential scheme set out its vision for the future. We r innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better cinema, restaurant and bar 3 restaurant units • £10.6m loan, 19 month term firmly uilt on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built onbelieve that such clarity of £15.2m loan, 25better month term • built £12.0m loan,service 26 month term 65.0% LTGDVbuilt on better people built on better experience built on betterpurpose edge built on better• innovation built on people built on better experience on better built on better knowledge built on•better innovation service and transparency of method r knowledge built on better innovation built on better service built on better knowledge built on better innovation built on better people built on better experience built on better • 60.0% LTGDV built on better people built on better experience • 67.4% LTGDV will make it easier for our brokers on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on and Patrons to engage with the e built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience r service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better NACFB, and allow us to bring even ilt on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on greater ence built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people value to the membership. r experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better n better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on Thank you to all of those who are built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation joining us on this exciting new r people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better ilt on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on I very much look forward chapter. tion built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge to meeting with as many of you as r innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better uilt on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on next year. 2018 is going to possible edge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service bebetter a year of positive change for the r knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on – but before all that can NACFB e built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience begin, I want to wish all of those r service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better within ilt on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built onthe NACFB family a very merry ence built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people Christmas and happy new year. r experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better n better experience on better service innovationbridge built onloan better people built on better experience built on better • built Development exitbuilt loanon better knowledge built on•better Acquisition • Development exitservice loan built on better knowledge built on better innovation built on built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation Warm regards, • 9 new-build detached luxury homes • Site with consent for 77 student units • 5 apartments and 3 mews houses r people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better • built £6.0m loan,experience 18 monthbuilt term, 70.0%service LTV built on •better £3.8m loan, 3built month term, 50.0% LTV £3.6m loan, 12 month term,built 70.0% LTV service built on better knowledge built on ilt on better people on better on better knowledge on better innovation built on better•people built on better experience on better Graham Toy tion built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge r innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better CEO, NACFB uilt on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on edge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service r knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on e built on betterOctopus knowledge built is onthe better innovation on better people built on Fern better experience built on betterNino service on better knowledge built on better built on better people built on better experience Property trading name of built Bridgeco Ltd (Reg No 6629989), Trading Ltd (Reg No 6447318), Ltd built (Reg No 9015082), Octopus Property Lendinginnovation Ltd (Reg No 7531926) r service built on better knowledge on better innovation on better people built onLondon better experience built on better service onand better knowledge built on better innovation and Octopus Co-Lendbuilt Limited (Reg No 8913299),built Registered Oﬃce: 33 Holborn, EC1N 2HT, registered in England andbuilt Wales Dragonfly Finance S.ar.l. (Reg No B189290) built on better people built on better ilt on better service built on better built on better innovation built on better people built on better experience built on Octopus better service built on better knowledge built on Limited better innovation built on better people built on Registered Oﬃce: Parcknowledge d’Activité Syrdall, 6 rue Gabriel Lippmann, L-5365 Munsbach, Luxembourg registered in Luxembourg. Property Lending Ltd and Octopus Co-Lend ence built on better service built better knowledge builtConduct on better innovation built on better are authorised andon regulated by the Financial Authority. For intermediary usepeople only built on better experience built on better service built on better knowledge built on better innovation built on better people r experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on better n better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation built on built on better experience built on better service built on better knowledge built on better innovation built on better people built on better experience built on better service built on better knowledge built on better innovation

Welcome | NACFB

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

Recent Commercial Loans

Ruislip, Middlesex

Imperial Way, Croydon

Long Lane, London

Recent Development Loans

Kings Road, Reading

Chalk Farm, London

Wood Green, London

Recent Residential Loans

The Oaks, Sutton Valence

Ealing, London

Castle House, Tunbridge Wells

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

Graham Toy CEO NACFB

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

In the news Expanding our reach Notes from our sponsor

Commercial Finance 10-11 Essential news bites

Top Story 12

Number of IFIsa offerings on the rise

Introducing 14

Think Business Loans launches much-needed broker app

Case Studies 16

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

Special Features 34-35 Brokers: how you can support ‘made in Britain’ 36 Entering a new realm within P2P 38-39 Are you ready? 40-43 Three essential takeaways from the Autumn Budget

Compliance Updates 44-45 The thorny issue of complaint handling

Industry Guides 46

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

Opinion & Commentary 50 52 54

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

Cover Story 24-28 Our 2017 gala dinner

Patron Profile 30-31 West One

Ask the Expert 32

John Byrne

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

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

NACFB Magazine | 3

Welcome | NACFB

Recent Commercial Loans

Ruislip, Middlesex

Imperial Way, Croydon

Long Lane, London

Recent Development Loans

Kings Road, Reading

Chalk Farm, London

Wood Green, London

Recent Residential Loans

The Oaks, Sutton Valence

Ealing, London

Castle House, Tunbridge Wells

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

Graham Toy CEO NACFB

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

In the news Expanding our reach Notes from our sponsor

Commercial Finance 10-11 Essential news bites

Top Story 12

Number of IFIsa offerings on the rise

Introducing 14

Think Business Loans launches much-needed broker app

Case Studies 16

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

Special Features 34-35 Brokers: how you can support ‘made in Britain’ 36 Entering a new realm within P2P 38-39 Are you ready? 40-43 Three essential takeaways from the Autumn Budget

Compliance Updates 44-45 The thorny issue of complaint handling

Industry Guides 46

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

Opinion & Commentary 50 52 54

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

Cover Story 24-28 Our 2017 gala dinner

Patron Profile 30-31 West One

Ask the Expert 32

John Byrne

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

NACFB Magazine | 3

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

A year of compliance

We’ve got a crush on you.

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

he team has supported new Members’ FCA authorisations and built a bespoke compliance support function for our NACFB Members. From the minimum standards reviews some of our Members have embraced the importance of operating within the new regulatory world and have the correct policies and procedures in place, driving the appropriate cultures. Some firms have had actions to be completed to bring themselves up to the standards the Association expects. Many others have taken the feedback and carried out remedial actions, and reported on their progress. The Association has provided support when required and, in overall terms, the response from Members has been excellent, giving the Association statistical data to support the quality of NACFB brokers. This initiative and the data it has produced is a key stage in the

4 | NACFB Magazine

Association being able to demonstrate to the SME market that NACFB brokers are set up to deliver professional services, and that clients can be confident in their dealings with our Members. It also gives funders the confidence that they are dealing with a quality-assured distribution channel for their lending products. Outside the visit programme we have developed an in-house capability to give bespoke compliance support to Member firms. This support has helped Members amend their regulatory permissions, and for some, to apply for their FCA authorisation. Through the model office suite of documents brokers now have access to over 50 tools specifically designed for implementation within a broking firm. The Association has seen an increase in complaints. We have been actively supporting our Members in handling these effectively and compliantly. Our sector will see complaints becoming more and more prevalent and having

the internal resources available to help Member firms, we believe, is an invaluable addition to the Association’s Member support framework. We have hosted a series of workshops during the year, starting with business quality and finishing the year on GDPR themes. Both topics will continue into 2018 as we look to increase the scope of topics relevant for our Members. NACFB Compliance Services has welcomed over 160 firms to our workshops this year, and we predict an increase in popularity over 2018.

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

Nearly 700 Members are logging in to MyNACFB and completing their annual testing on AML, data protection and financial crime prevention, and to record their CPD. The Association has started to deliver new modules such as cybercrime, and training for the upcoming GDPR. With effective Member feedback, new modules will be developed and released over 2018. Continued P6

Call us on 0203 846 6809 or visit intermediaries.lendinvest.com. LendInvest Limited is registered at 8 Mortimer Street, London, W1T 3JJ (Company 08146929). ICO number ZA179467. Your client’s property may be repossessed if they do not keep up repayments on their mortgage. For intermediaries only.

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

A year of compliance

We’ve got a crush on you.

4 | NACFB Magazine

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

NACFB NEWS

Looking towards 2018, we know and understand the demands on the Association to continue support for our Members in compliance matters, as firms are required to keep up-todate with changes in regulation, and adapt to recommendations from FCA supervisory activity, such as the impending motor finance review. You can book your free consultation today simply by emailing: compliance@nacfb.org.uk with a contact telephone number and a convenient timing for our team to call you.

NACFB asset finance day

he NACFB hosted a dedicated asset finance day that catered specifically for our asset finance Members. The event, which took place in Bolton in mid-November, was sponsored by NACFB Patrons Shawbrook Asset Finance, Hitachi, Aldermore and Investec. A strong turn-out of NACFB broker Members ensured that the roundtable event was the ideal forum to discuss processes and products impacting those operating in the space. The group also benefited from a complimentary compliance workshop from Roger Deane, managing director of NACFB Compliance Services. Roger outlined the regulatory hurdles and potential compliance pitfalls asset finance brokers may encounter in the lifecycle of a deal. Norman Chambers concluded the day by outlining the scope and vision for the Association in 2018. Part of this outlook includes a series of events targeting specific practice areas, providing a platform for lenders and brokers to engage and collaborate.

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

823 Member firms 135 Patrons.

6 | NACFB Magazine

NACFB NEWS

Expanding our reach Over 5,000 people attended an NACFBsupported event in 2017. From headline events, such as the CFE and gala dinner, to Membersâ&#x20AC;&#x2122; days and compliance workshops, the NACFB remains committed to engaging with its Members face-to-face.

A AGM E Expo

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

W Workshop

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

R Roadshow

B Broker day

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

P Property development day

R W

What value is there in attending an NACFB event? Member brokers find such events are an invaluable resource in terms of their educational function and providing an ideal forum to share ideas on products and processes in the commercial finance sector. Next year will see the NACFB refine its events focus, both in terms of where events and workshops are hosted but also in terms of what subjects are covered. Keep an eye out for more sector-specific events, tailored to areas of commercial finance where we are seeing a demand for educational and networking days.

W W

R R

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

Location

Date

LendInvest Property Development Course

Location TBC

1st March

LendInvest Property Development Course

London

7th June

Commercial Finance Expo

Birmingham

20th June

LendInvest Property Development Course

Location TBC

13th September

LendInvest Property Development Course

London

15th November

NACFB Gala Dinner

London

29th November

E W W R B R P B

R W

A G P

W W

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

NACFB Magazine | 7

NACFB NEWS

NACFB asset finance day

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

823 Member firms 135 Patrons.

6 | NACFB Magazine

NACFB NEWS

A AGM E Expo

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

W Workshop

R Roadshow

B Broker day

P Property development day

R W

W W

R R

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

Location

Date

LendInvest Property Development Course

Location TBC

1st March

LendInvest Property Development Course

London

7th June

Commercial Finance Expo

Birmingham

20th June

LendInvest Property Development Course

Location TBC

13th September

LendInvest Property Development Course

London

15th November

NACFB Gala Dinner

London

29th November

E W W R B R P B

R W

A G P

W W

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

NACFB Magazine | 7

THE TEAM FOR BRIDGING LOANS

NACFB NEWS

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

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

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

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From a Shawbrook perspective, we have been delighted with 2017 and look forward with a great deal of optimism. The various changes to the affordability landscape represented one of the more challenging occurrences of the year, and while some were forced to make some fairly radical shifts to distribution and process, our appetite and ability to lend across our various markets remains undimmed. Having said that, this year has not been without its problems and there were undoubtedly some speed bumps along the way that were resolved due to the hard work of our dedicated teams, and the close relationship we have with the broker and intermediary community. Feedback is crucial to the evolution of any proposition and fortunately for us, the participants in our industry are always fairly vocal. Much of this feedback has been around systems and platforms, and has resulted in continuous improvement to the digital touchpoints with our distribution. In fact, technology seems to be one of the buzz words currently dominating the C-suite and there has

CMY

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

opportunity to continue our support of the NACFB as title sponsor. This has been a four-year journey for Shawbrook, and looking back over our time with the Association is hugely gratifying, given our involvement in some great initiatives against the backdrop of significant regulatory and governmental change. The importance of leadership, training and education has never been more significant, and these are undoubtedly high on the agenda as we move into the new year. I would like to thank the NACFB for their work and support over the past four years, and I look forward to retaining a strong voice as a Patron moving forward. In the meantime, I wish you all a very merry Christmas, a happy new year and I’ll be sure to raise a glass (or 10) to a positive 2018.

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

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

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Commercial Finance

James Bloom appointed MD of short-term lending at Masthaven

65% of brokers report bridging loan volume increase

33% of commercial investors suggested that Germany is their preferred region to invest in, according to research by BrickVest. The online real estate investment platform’s barometer revealed that for the first time Germany has been chosen as the number one region to invest in, ahead of the UK (27%). UK, German and US investors favoured the UK less than last year.

Bank of Ireland UK launches online offer service for brokers Bank of Ireland UK has launched a new online offer service for brokers. Mortgage offers will now be available for brokers to view and download online via Bank of Ireland’s mortgage application system. Brokers will receive an email once their client’s case has gone to offer. Online and hard copies will also be sent to the client and their solicitor.

Turnover of UK’s top 500 hotel companies hits £13bn The turnover of the UK’s top 500 hotel companies increased 5% last year to £13bn (2015/16: £12.4bn), according to Ortus Secured Finance. The lender claimed that the rise in international visitors and British people holidaying in the UK has helped to drive the turnover of the UK’s top 500 hotel companies to a five-year high.

James Bloom has been appointed to the role of managing director for Masthaven’s shortterm lending division. The post – which James took up on 1st December – encompasses the specialist bank’s bridging and development finance lending teams. Since joining Masthaven from Regentsmead, James has held the position of managing director of the development finance team.

Innovate UK makes £10m available to SMEs Up to £10m is available in loans to UK SMEs via a pilot programme offered by Innovate UK. SMEs working on late-stage infrastructure systems projects can apply for a share of £10m in the loans competition. The aim is to help businesses overcome barriers to scaling up innovation in infrastructure systems by enabling them to demonstrate their ideas in real-world applications.

Commercial property investors favour Germany over UK

Start Up Loans programme delivers over £350m An independent review of the Start Up Loans programme revealed more than £350m of funding was provided to start-ups and early-stage business across the UK. 35% of those surveyed stated they wouldn’t have started a business at all without the programme’s support. The scheme, operated by a subsidiary of the British Business Bank, has delivered over 50,000 loans since launching in 2012.

Almost two-thirds of brokers (65%) reported increased bridging loan volumes in Q3 2017, a rise on 48% in Q2, according to bridging lender MTF’s latest broker sentiment survey. For the first time, 9% of the 96 brokers surveyed highlighted increased demand in Scotland and Northern Ireland. Some 69% of brokers claimed the bridging process took longer than it did 12 months ago. Government names small business commissioner Paul Uppal has been appointed to the newly established role of small business commissioner. Mr Uppal will lead an independent office tasked with empowering small businesses, providing advice and information regarding resolving disputes with larger businesses and help to drive a culture change in payment practices. Mr Uppal has 20 years’ experience as a business owner in the real estate sector.

Debt trading platform RCX now accepts bitcoin Racefields has announced that investors will now be able to invest in debt securities using bitcoin following an update to its RCX debt trading platform. The new service launched in November and allows bitcoin owners to bid on investment opportunities just as a cash user would. Racefields will process transactions via its regulated bitcoin exchange partner based in the Netherlands.

LendingCrowd funds 33 Scottish SMEs

Alternative finance provider LendingCrowd has completed 33 loan deals, worth £3m, to Scottish SMEs following its partnership with Scottish Enterprise. In October 2016, LendingCrowd received £2.75m from Scottish Enterprise to lend across its platform to SMEs north of the border. Stuart Lunn, CEO and cofounder of LendingCrowd, said the firm was targeting £15m of loans to Scottish SMEs in 2018.

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LendInvest enters BTL market

LendInvest has announced the launch of its BTL product for experienced, professional property investors and landlords operating in England, Wales and Scotland. The new product was developed with portfolio landlords in mind and caters for the full spectrum of the residential property investment market. Brokers can apply for the BTL product on behalf of their clients via LendInvest’s online platform. Ultimate Finance posts surge in asset finance lending Ultimate Finance Group has experienced major asset finance growth, with money advanced up 65% from September 2016 to September 2017. The lender also reported a 60% rise in the number of asset finance clients in the same period. The increase has been matched by internal expansion, with the company reporting a 50% increase in asset finance staff this year.

Commercial Finance

James Bloom appointed MD of short-term lending at Masthaven

65% of brokers report bridging loan volume increase

Commercial property investors favour Germany over UK

LendingCrowd funds 33 Scottish SMEs

01784 227322 hitachicapital.co.uk/business-finance

LendInvest enters BTL market

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Business-boosting loans up to £500,000

Our pick of the latest Patron news

Fixed rate loans with no set up fees or early repayment charges Security may be required. Product fees may apply. Over 18s only. Business turnover of up to £2 million. Excludes refinance and Commercial Real Estate Finance.

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

he number of available IFIsa products in the P2P market is about to increase rapidly, with several of the biggest lenders in the field recently announcing their plans to launch the offering. Funding Circle has confirmed it would roll out its Isa account from 30th November onwards, allowing access to the offering in stages: investors who are actively lending (have lent to a business since 1st May 2017) investors not actively lending but who have previously transferred in funds investors who have not previously transferred in funds new investors and those who have opened a classic account after 23rd November 2017. In preparation for the anticipated high demand, the lender said it will not initially allow transfers of existing Isas to its platform. RateSetter, another one of the ‘big three’, has announced it would be launching its IFIsa offering before the end of March 2018. Speaking to the Financial Times, Rhydian

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

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

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

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

“We also expect that the introduction of the RateSetter Isa will attract new lenders, and increase the supply of money into the RateSetter market.” Assetz Capital has also announced its plans in November to launch an IFIsa offering before Christmas, after receiving full authorisation from the FCA in September. Speaking to Peer2Peer Finance News, the lender confirmed the offering would be available to both existing and new customers without additional charges. Stuart Law, CEO at Assetz Capital, said the decision to launch the IFIsa offering was based on initial interest registered by around 8,000 existing customers.

Numbers released by HMRC in August 2017 showed the product had still some way to go before becoming a mainstream offering, claiming just £17m had been invested across 2,000 accounts in the 2016/17 tax year. The long process of obtaining full authorisation is often cited as a key reason for this. However, 2017 saw several larger lenders obtain authorisation, such as Funding Circle in May 2017, Assetz Capital in September and RateSetter in October. It is important to note that take-up of IFIsa offerings may not necessarily mean a sudden, large boost in P2P lending, rather that investors are shifting their lending from different Isas into the new account. However, the P2P sector has already demonstrated a steady growth in 2017, with more than £700m lent during Q3 2017, according to the Peer-to-Peer Finance Association. Additionally, with more P2P lenders obtaining full authorisation, 2018 could truly go on to be the year of the IFIsa.

Email us at brokerteam@natwest.com

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

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

Top | story

Business-boosting loans up to £500,000

Our pick of the latest Patron news

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

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

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

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

Email us at brokerteam@natwest.com

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

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

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

Think Business Loans launches Commercial Finance much-needed broker app

Sales [Re-Engineered]

Jamie Stewart Director Think Business Loans

ommercial finance brokerage and NACFB Member Think Business Loans has launched a new cloud-based application, TheThinkApp, to assist intermediaries with day-to-day case management throughout the loan process. The CRM, tendering platform and matching app allows intermediaries to contact, match and process applications directly, all in one place, with the ability to compare clients against the criteria and prequalification of over 200 lenders. work the coatings so that, through

Users can filter results using our iFunds lender matching software, based on the data collected from the client and through connecting the customer’s accountancy software, open banking and credit agencies to give a real-time result. This means brokers can advise their clients instantly, collect all the relevant supporting documents at the push of a button and then apply to that lender via the lender platform. Once the application is in credit, brokers can monitor the progress in real time and also connect directly with that lender via a live chat function. The app also connects to several third party data feeds, including credit agencies and banks. In addition, with open banking coming into force in January 2018, the software will also allow direct access for brokers to their clients’ bank statements. As a result of TheThinkApp we have seen our company grow by 1000% in 12 months, and that growth can

14 | NACFB Magazine

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

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

SMS compliant, capabilities allow This ensures not only are we FCA but them also the likelihood be directly attributed to both our to get on with building their the lenders is increased considerably. lending technicians and the app itself. business and this industry. The licence is based on commission splits, which in essence means you This is a service completely designed only pay when you close business. for commercial finance brokers, and has been designed to side-step Not only do you have full use of the the daily hurdles we all face. end-to-end capabilities, but also our operations team. We made sure to

of ﬁnal offer from

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

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

API Connectivity - Credit check your clients & connect to

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

Think Business Loans launches Commercial Finance much-needed broker app

Sales [Re-Engineered]

Jamie Stewart Director Think Business Loans

14 | NACFB Magazine

of ﬁnal offer from

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

API Connectivity - Credit check your clients & connect to

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

Fuelling two luxury refinance deals Isaac Hooper Account manager Liberty Leasing

ue to the type and potential age of assets in the classic, prestige and race car markets, the transactions in this field tend to be refinancing deals that involve careful structuring. Back in 2005, Liberty Leasing recognised an opportunity to enter this market and since that time has built a solid reputation for dealing with these assets. In March 2017, we were approached by one of our brokers who had an ultra-high-net-worth client with a refinance proposal for four classic cars – including an Aston Martin DB5 and a Ferrari 288 GTO – with a cumulative value of £4m. At an agreed lend value of £2.5m, this was Liberty’s largest-ever deal. The nature of a refinance tends to involve a higher level of work and expertise. For example, the assets were viewed and valued by a specialist third party under the instruction of our asset team. With the director of the company being a foreign national with a limited profile in the UK, this involved extra due diligence. The main reason for the client to refinance the vehicles was to release funds from the asset to allow for a cash injection into the business while maintaining manageable payments. With this in mind, the deal was structured to include balloons along with longer terms. I went to meet the director of the business in Mayfair, and was responsible for the deal throughout the whole process. I also remain the main point of contact for the introducer. Sales and operations director Paul Sheedy also attended the meeting. He said: “While it feels

like a natural progression, it’s great to see Liberty dealing with large-ticket deals, particularly this year, providing finance for two of their largest deals ever. “As we’ve grown, we’ve continued to push the boundaries of what we can offer and are in a position where we are confident to handle larger transactions. We’ve made considerable investments in our infrastructure and systems with an in-house asset and legal department, as well as employing Richard Bristow as head of credit last year. “Isaac has done a fantastic job, having been with the company for two years, coming through our training programme and being mentored by area manager Lewis Banford. Liberty is passionate about nurturing new talent and believes it is vital for the future of the asset finance industry.” This deal set something of a trend at Liberty, with our second-largest deal paying out in August, also handled by Isaac. Our south-east account management team was introduced to a refinance proposal

for two classic Jaguar Le Mans cars worth £2.5m, with a lend of £1.56m. This deal presented some challenges that required negotiations between Liberty and the invoice discounting company in order to complete the transaction. The client benefited from the refinancing in a number of ways as we were able to settle outstanding finance, while applying residual balloon payments to facilitate lower repayments, as well as creating equity for the client.

A short-term let product which isn’t short on common sense Our new holiday let product is ideal for landlords who want to purchase or remortgage a property for short-term letting. It’s available on a first or second charge basis. We’ll consider many income sources, credit profiles and property types. If we can help, we will. It’s what we call common sense lending.

While recognising its strength within the car markets, Liberty understands the importance of not placing all its eggs in one basket. It continues to work hard to diversify the asset types it deals with. Angelo Stephens was a welcome addition to the asset team in 2016, with specialist experience in plant and agricultural machinery. Personal service has been and always will remain key at Liberty, as it allows them to spend more time with the client and understand the transaction, ensuring a deal can be crafted and structured in a way that is viable and ultimately benefits the client.

For more information call 0161 933 7065

togethermoney.com/intermediaries For professional intermediary use only

16 | NACFB Magazine

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

Fuelling two luxury refinance deals Isaac Hooper Account manager Liberty Leasing

For more information call 0161 933 7065

togethermoney.com/intermediaries For professional intermediary use only

16 | NACFB Magazine

CASE STUDIES

ONE BAN LOFTS K LOFTS LOFTS ONE ONE BANK BANK

O NE B A NK L O FTS

The office space pre-conversion

18 | NACFB Magazine

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

The finished homes

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

ver a year later and the development by Regents Bay is complete with developer and director Bhav Patel having created two character apartments in a grand bank building. Regents Bay has a strong track record in property refurbishments and the team was able to show UTB that it was equal to the task by virtue of having successfully completed three similar projects. Between exchange of contracts and completion, Bhav obtained planning permission for the change of use from A2 to C3, which paved the way for the office space to be turned into two 1,250 sq ft apartments.

The purchase price of the office space was £270,000 with the conversion works estimated to cost a further £125,000. UTB’s valuer assessed the GDV of the completed apartments to be in the region of £550,000 and the initial market value to be £250,000. UTB agreed to provide an initial advance of £162,500 representing 65% of the initial market value of £250,000 with interest rolled up and added to the loan. UTB also agreed to fund 100% of the works costs in arrears, which the borrower requested to be paid out in four tranches. The original facility – including the initial advance, loan fees, rolled up

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

Bhav said: “It has been a pleasure to deal with United Trust Bank on this project. Not only was it so much quicker than dealing with a high street bank, both in getting an initial decision and releasing the first tranche of money, but the team at UTB also bring a human side to the relationship which is lacking from many lenders currently. In my experience, enquiries to a large bank for facilities of under £2m are often handed off to a centralised platform, where a customer service person will take you through some set, vague questions. They don’t fully take the time to understand the project itself and therefore the need. “When working with the team at UTB, it’s very much a partnership. They work hard to find a solution that’s suitable and beneficial to both the customer and the bank. That was apparent when the property market cooled down causing us to make a change of plan with the apartments. They understood our situation, were happy with our suggestions and put together a flexible and

competitive solution we were all happy with. When we identified our next project – the church in East Sussex – UTB was my first choice to approach for the funding.” Gavin Diamond, commercial director of bridging at UTB, added: “The Regents Bay team has done a great job on this conversion, creating two high-quality and distinctive homes. When Bhav came to us to suggest restructuring the funding rather than rushing to sell the apartments within the original loan term, we were happy to put together a solution which met his and our requirements and we’re looking forward to supporting Regents Bay on their next exciting project.”

Gavin Diamond Commercial director bridging United Trust Bank

NACFB Magazine | 19

CASE STUDIES

ONE BAN LOFTS K LOFTS LOFTS ONE ONE BANK BANK

O NE B A NK L O FTS

The office space pre-conversion

18 | NACFB Magazine

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

The finished homes

Gavin Diamond Commercial director bridging United Trust Bank

NACFB Magazine | 19

CASE STUDIES

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

ffirmative was recently approached by a customer who was looking to move forward on the purchase of a plot of land as quickly as possible. The land itself had planning permission granted and in place to develop a single residential dwelling. The customer was looking to complete the build to a high standard and then sell the property with minimum turnaround time to then move on to the next project. The customer had arranged an agreement with the vendor that meant all parties involved could proceed with the transaction within a short space of time. Affirmative’s customer agreed a purchase price of the land in which they would be paying just over half the amount upfront, with the seller agreeing to defer a portion of the purchase price. Arranging finance around this agreement meant that the loan would require a bespoke structure and, as such, Affirmative’s director spoke with the borrower to explain the potential method of making this work for everyone involved. After discussions with Affirmative’s team, both the borrower and lender decided that the most effective way

to proceed on this sale arrangement would be for Affirmative to put a deed of priority in place, which allowed them to take a first charge on the property and maximise their LTV. This ensured that the customer was able to release the maximum amount of funds towards the purchase on day one. The borrower was a builder by trade and due to his experience in the field, he had secured funds prior to this request to ensure that he was able to complete the remainder of the purchase and then increase the value of the project, prior to drawing down development funds from Affirmative. The customer used a residential remortgage on a separate property to achieve this. Following the commencement of the build, the customer was looking to make amendments to the planning permission to maximise the space of the site and increase the potential gross development value of the project. The customer worked closely with Affirmative’s on-the-road team and arranged site visits to detail and explain the changes that he was looking into making. Affirmative agreed with the potential of the amended planning and accommodated the delay in building while the amendments were approved by the council. The plans came through after a slight delay and the build got back on track straight away.

A FS GROU P

The delay in changing the planning meant, however, that the build was behind schedule and was at risk of running into the winter months and slowing progress even further. Affirmative again met with the borrower to discuss the timescale and the likely expected times that drawdown of funds would be required. By doing this, re-inspections were arranged ahead of time and Affirmative’s legal team were notified of an imminent release. By following this process at each stage, Affirmative was able to ensure that there was no delay in the borrower requesting and then receiving funds. By working closely with Affirmative’s team and using his prior experience, the borrower was able to progress the build back on track – even ahead of schedule – and eventually finished the project with time to spare on the initial estimated timeline. The property had interest from potential buyers prior to completion and was sold shortly before the final fittings were in place. The client’s change of plans proved to be beneficial as the project achieved the increased sale price and netted the customer a significant profit. The profit earned from this project has helped the customer push forward with similar endeavours, while maximising his own cash input and minimising borrowing to continue to enhance the profit margins.

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

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CASE STUDIES

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

A FS GROU P

brokerinabox.finance WE’VE GOT YOU COVERED

STRONGER TOGETHER

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CASE STUDIES

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

David Parker Head of healthcare Metro Bank

t’s like the healthcare industry is wearing a Fitbit. If you don’t stay on top of it, it’s likely to have lapped you. Twice. Given Brexit and the ongoing debate over the future shape of the NHS, it’s also an industry that’s getting its fair share of the limelight, which makes for an interesting period for anyone lucky enough to be working within the sector. Beyond those events taking place in both Brussels and Whitehall, there are numerous changes being implemented that are affecting the industry, whether you’re looking at the dental, pharmaceutical or the children’s day-care market. This latter is buoyant. According to IBISWorld, the industry is said to be worth in the region of £4bn to the UK economy. Within the market itself,

there continues to be a lot of activity, with consolidation at the top of many groups’ agendas, and with single sites being bought by mid-sized groups, which in turn are being purchased by national-level operators. Whatever the market conditions, the role of the broker is absolutely vital. Having spent over 10 years in the industry, it’s great to be part of a bank that really puts customers at the heart of everything it does. We are a growing team, heavily focused on building long-term relationships with both our customers and wider stakeholders. Brokers are a case in point. We know they can really make the difference for a customer, and can ensure that they’re able to find the right solution quickly and efficiently. As a business we nurture our relationships with healthcare brokers, regularly holding events,

A recent example of this was our work with East Sheen-based Top of the Class Nursery, where we were able to support the growing company with a multi-million-pound funding solution through working with Jas Bhogal from Chancery Wall Financial Services. Jas took the time to find out what the nursery was looking for, not just in terms of now, but also thinking about its future and expected growth. By way of a thorough understanding of both the customer and the wider industry, we were able to work with Jas to provide heads of terms in a timely manner, which included refinancing existing facilities and providing an equity release to support existing refurbishment works. Our one-bank ethos, which involves taking a case-by-case approach to underwriting, ensured that our healthcare team was able to engage directly with colleagues from across the bank, from credit underwriters to the local store team, meaning a significantly quicker turnaround for Jas and Top of the Class Nursery. A successful conclusion all round. At Metro Bank, we have a bankwide policy of ‘no stupid bank rules’. This means a simple and easy process, as we make sure all our communication and requirements are clear and concise – after all, we know how busy both customers and brokers are. Our outlook and way of doing business has meant that every day we’re growing our broker and healthcare customer base, and we very much look forward to developing even stronger relationships and supporting yet more customers in realising their ambitions.

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

Just Cashflow has successfully been supporting SMEs with its Revolving Credit Facility (RCF) that acts exactly like a traditional bank overdraft. This is a great solution for shorter term funding needs. Now it has introduced a new loan product with flexible features that allows you to design funding to suit your clients needs. Business Builder provides a 2 to 3 year loan facility for businesses that need funds over a longer period and gives them certainty on their monthly or weekly repayments. Other features that can be worked into the design include payment holidays, early repayment without penalties and loan extensions. “We appreciate that businesses have different finance needs that reflect their growth plans, seasonality of income

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

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

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

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

know how this is going to impact them and would welcome the flexibility and relief that payment holidays can provide. “Businesses rely on the expertise of professional brokers and intermediaries and our flexible financial solutions will allow them to work with their clients to provide a tailored product. We are committed to providing fast and flexible funding so our application process is straightforward.

“The most successful businesses are ones that can quickly adapt to new challenges and opportunities and our thinking is that our finance facilities should reflect and encourage this. For example if things change and a business has the ability to repay their loan early why should they be penalised for it ?” For more information on how Just Cashflow’s solutions are ideally placed to help build businesses, call our Broker Support Team on 0121 418 5037 or visit justcashflow.com/partner

The final piece in the puzzle

- a loan you can design yourself. As a professional broker or intermediary you’ll be used to seeking fast and flexible funding for your clients. Just Cashflow knows that every business is different and our new loan products enable us to offer you tailored financial solutions to meet the requirements of your clients. Now you can design a loan with your Client that can give them access to funds from £10,000 to £500,000 in a way that exactly fits with their business needs. Blend a short term and long term loan, pay it off without penalties, add in a payment holiday - a Just Cashflow loan can do it all.

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

0121 418 5037

Alternatively, find out more

justcashflow.com/partner

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

BCMS668054

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

22 | NACFB Magazine

CASE STUDIES

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

David Parker Head of healthcare Metro Bank

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

The final piece in the puzzle

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

0121 418 5037

Alternatively, find out more

justcashflow.com/partner

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

BCMS668054

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

22 | NACFB Magazine

Cover Story | feature xxxx

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

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

24 | NACFB Magazine

for the sixth time at the Park Plaza Westminster, was led by skilled host Aaron James. His experience, coupled with his wry wit and hearty one-liners, set the tone for a fun-filled evening. NACFB chairman Paul Goodman welcomed attendees and thanked all Members for their continued support and backing as the Association transitions into 2018. A special thank you was presented to the gala dinner’s headline sponsor, Shawbrook Bank. Karen Bennett, managing director of commercial mortgages at Shawbrook Bank, spoke of being “immensely proud of the commitment shown by the intermediary community to understand

the impact of a changing regulatory landscape and its effect on the customer”. She added: “The NACFB has been a leading light of this drive for education and Shawbrook has been proud to support throughout this pivotal time.” The evening also featured an innovative silent auction, with proceeds going to the NACFB’s chosen charity, YoungMinds. Sarah Brennan, OBE of YoungMinds, addressed the audience outlining that proceeds from the bids would be going to improving the wellbeing and mental health of children and young people in the UK. By the end of the night, guests had raised a staggering £20,000 – an astonishing achievement. Chairman Paul

Goodman commented: “The NACFB is proud to both support such a worthy cause and of the remarkable generosity of all those who donated on the night.” This year’s silent auction was sponsored by NACFB Patron Growth Street. Chris Weller, commercial director, said the lender was “delighted to sponsor the NACFB gala dinner’s silent auction: a great way to mark 25 years of the NACFB.” Veteran politician and broadcaster Gyles Brandreth then took to the stage to host the evening’s award ceremony. The NACFB awards recognise standout lenders nominated by NACFB broker Members. The NACFB saw dozens of names put forward in some categories

– clearly demonstrating that there are many lenders deserving of plaudits. As with previous years, a wide range of entertainment served as a backdrop to the occasion, and live New Orleans jazz provided by Hot House Jazz ensured an authentic prohibition sound scape continued well into the night.

Norman Chambers MD NACFB

NACFB Magazine | 25

Cover Story | feature xxxx

24 | NACFB Magazine

Norman Chambers MD NACFB

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

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

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

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

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

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

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

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

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

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

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

Hamilton House Award – Sponsored by NACFB Winner: LendInvest

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

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