NACFB Magazine - November 2018 by NACFB

Issue 64 November 2018

The magazine for the National Association of Commercial Finance Brokers

The rise of the ‘super broker’ As financial solutions become more and more diverse, so too are brokers evolving.

In this issue

Top tips for social media in business

The do’s and don’ts for a healthy online presence

Diversity and inclusion

An important perspective on putting people first

Investec’s annual asset finance survey Brokers anticipate growth and over half are expanding into new sectors

Buy-to-let lending for foreign nationals Not just mad dogs and Englishmen At Octopus Property, we know the challenges foreign nationals can face getting the funding they need. That’s why we specialise in unconventional buy-to-let deals. We take a flexible approach, knowing that every case is unique. Whatever the location, experience or asset, we could work to oﬀer funding.

Give a case a home at octopusproperty.com

Welcome | NACFB O

ver the last two months, I have attended a number of key events and met with a wide range of Members and Patrons. From regional sector-specific days to a London Patrons’ Day, the team and I sought to stand before as many of our stakeholders as possible. We also staged our 2018 AGM this month at the Lending Summit, where I was pleased to see a high level of support, understanding and debate. Firstly, thank you to all those who came along to these events and offered their feedback, constructive guidance and suggestions for steering the future of your trade Association. You may already have heard me discuss this at any one of the events, but one topic that came up repeatedly was that of engagement. The drive for better engagement seems to exist in all forms of modern life, but in our world, and within your Association, increasing the engagement with you – our Members and Patrons – remains at the very top of our to-do list. This drive to communicate better is not just a one-way street, I am calling upon all our stakeholders to meet us in the middle and offer your thoughts and views on how the NACFB can do better to ensure our Members are at the heart of everything we do. There will also be additional opportunities to offer feedback throughout 2019, not least in our magazine, where I encourage our Members to use it as an opportunity to tell us, their fellow Members and Patrons about their successes and challenges in their world. Closer on our horizon is our annual NACFB Gala Dinner on 29th November. Both the NACFB board of directors and head office team look forward to seeing, and engaging with, many of you there. Until next time. Graham Toy

For Professional Intermediaries Only Octopus Property is the trading name of Bridgeco Ltd (Reg No 6629989), Fern Trading Ltd (Reg No 6447318), Nino Ltd (Reg No 9015082), Octopus Property Lending Ltd (Reg No 7531926) and Octopus Co-Lend Ltd (Reg No 8913299), Registered Oﬃce: 33 Holborn, London EC1N 2HT, registered in England and Wales and Dragonfly Finance S.ar.l. (Reg No B189290) Registered Oﬃce: Parc d’Activité Syrdall, 6 Rue Gabriel Lippmann, L-5365, Munsbach, Luxembourg registered in Luxembourg. Octopus Property Lending Ltd and Octopus Co-Lend Ltd are authorised and regulated by the Financial Conduct Authority.

Graham Toy CEO NACFB

In this October issue NACFB News 4-6 8 9

In the news Notes from our sponsor Dates for your diary

Compliance Update 10-12 Top tips for social media in business

Commercial Finance 14-15 Essential news bites

Cover Story 16-18 The rise of the ‘super broker’

Top Story 20

FCA confirms greater access for SMEs to the FOS

Introducing 22

Assetz to launch property crowdfunding platform in Q4

Case Studies 24-25 Creative property finance funds business acquisition 28 The top-up that kept the broker and client coming back for more

Special Features 34

Quality over quantity – lets go local 36-38 The importance of diversity, inclusion and understanding in the workplace 40-42 Commercial finance brokers overwhelmingly positive on growth 44 What does the interest rate rise mean for SMEs and their future plans?

Industry Guides 46-47 Cleared for take off - A guide to aviation finance 48-49 A successful relationship is the sum of its parts

Opinion & Commentary 50

Brokers can get involved with property auction finance 52-53 How (and why) lenders can bring more transparency to the table 54 Is it still safe to fund higher risk businesses?

Patron Profile 30-31 Tuscan Capital

Ask the Expert 32

Jonathan Bower

For further information Kieran Jones, communications manager t. 020 7101 0359 33 Eastcheap, London EC3M 1DT Email: Kieran.Jones@nacfb.org.uk

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

NACFB Magazine | 3

Give a case a home at octopusproperty.com

Welcome | NACFB O

Graham Toy CEO NACFB

In this October issue NACFB News 4-6 8 9

In the news Notes from our sponsor Dates for your diary

Compliance Update 10-12 Top tips for social media in business

Commercial Finance 14-15 Essential news bites

Cover Story 16-18 The rise of the ‘super broker’

Top Story 20

FCA confirms greater access for SMEs to the FOS

Introducing 22

Assetz to launch property crowdfunding platform in Q4

Case Studies 24-25 Creative property finance funds business acquisition 28 The top-up that kept the broker and client coming back for more

Special Features 34

Industry Guides 46-47 Cleared for take off - A guide to aviation finance 48-49 A successful relationship is the sum of its parts

Opinion & Commentary 50

Brokers can get involved with property auction finance 52-53 How (and why) lenders can bring more transparency to the table 54 Is it still safe to fund higher risk businesses?

Patron Profile 30-31 Tuscan Capital

Ask the Expert 32

Jonathan Bower

For further information Kieran Jones, communications manager t. 020 7101 0359 33 Eastcheap, London EC3M 1DT Email: Kieran.Jones@nacfb.org.uk

ADVERTISING & EDITING: Medianett t. 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 November 2018

Tell them you’ve found someone who really understands you.

NACFB launches streamlined principle-based Code of Practice

he NACFB launched its revised Code of Practice on 8th November at our 2018 AGM. The streamlined code is now principlebased rather than prescriptive to ensure a more pragmatic approach in its application, and focused on outcomes for clients, rather than on process. The change also reflects the fact that our regulators also operate ‘principle-based’ regulation. The NACFB Code of Practice lays out the framework under which Members and Member firms conduct their business. The code applies to all members of the Association. The previous Code of Practice contained a set of generic rules, processes and procedures with some for specific industry sectors. As it stood, within the existing framework, the Association felt that there was not enough transparency for stakeholders within the Code.

The revised code has undergone significant revisions, one of which is to remove processes and procedures from the document; these now sit separately and are clearer and more objective. A further benefit is that the code has been consolidated from 21 pages to just eight – ensuring it becomes a more practical working document. The code, together with the NACFB Minimum Standards document, sets out and promotes the standards of compliance and professionalism that Members must meet in their business activities. NACFB Members commit to treating their clients fairly and responsibly, and to operating with integrity at all times. They also commit to being timely, transparent and unambiguous in their business dealings.

for Business and the regulations set out by the Information Commissioner’s Office (ICO). The code is not intended to sit within any regulatory hierarchy and there should be no conflict between the NACFB framework and any existing statutory regulatory regime – if there is, however, the latter will always prevail

When it comes to property finance, we care about developing something meaningful.

Importantly, the code is there to represent to clients and other stakeholders that in dealing with NACFB brokers you should expect to be dealt with in a way that matches that of any other professional service To view and download the new NACFB Code of Practice visit: nacfb.org.

The commitments are designed to sit alongside the FCA Principles 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.

4 | NACFB Magazine

NACFB | in the news Association news and updates for November 2018

Tell them you’ve found someone who really understands you.

NACFB launches streamlined principle-based Code of Practice

When it comes to property finance, we care about developing something meaningful.

4 | NACFB Magazine

NACFB NEWS

Why join the NACFB? The National Association of Commercial Finance Brokers (NACFB) is the flagship trade body for UK commercial finance brokers. Our Association comprises over 1600 commercial finance brokers covering the whole of the UK. Our Members are required to have FCA Permissions, Professional

Indemnity Insurance and a Data Protection Licence. The Association partners with all Members to foster professional expertise, embracing the highest industry and regulatory standards to help your business prosper.

CODE OF PRACTICE

COLLABORATIVE EVENTS

Helping all our Members adhere to a consistent set of principles assuring both lenders and SMEs.

COMPLIANCE & REGULATION Delivering a comprehensive and bespoke compliance support package for all Members.

Hosting the Commercial Finance Expo and CPD accredited workshops alongside regional training and educational roadshows.

NACFB hosts packed out Patrons’ Day Representatives from over 50 NACFB Patrons joined chairman Paul Goodman and members of the senior executive at our October Patrons’ Day, a forum designed to share the Association’s progress and look ahead to future developments. The opening remarks from Paul outlined that while the NACFB is – and always will be – a brokerdriven Association, it remains very much aware that we form only part of a wider commercial finance community. A community that includes brokers, lenders, lawyers, valuers and accountants all working together with the sole aim of helping to fund UK business.

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NACFB CEO Graham Toy used the forum as a platform to share, and obtain feedback on, some of the Association’s key projects and developments. He spoke of the NACFB’s brand refreshing as well as the new look magazine and website. Graham also outlined upcoming changes to the board of directors; ensuring there is lender input and representation on future decision making. Gathered Patrons collectively recognised the positive changes that the NACFB has made in 2018 and looked forward to seeing a continuation on the same trajectory. As with feedback received from brokers, Patrons also expressed

PI INSURANCE

Enabling a closer working lender relationship – making processes easier and more time efficient.

their desire to have greater clarity of communication from the NACFB and more distinctly tailored messages to each sector. This was only the Association’s third ever Patrons’ Day, but similar opportunities will form part of the NACFB’s events programme in 2019. How can the NACFB work better to help our Patrons? Were you unable to attend and feel like offering your own perspective? Get in touch, the NACFB is not just receptive to feedback on Members and Patrons’ days – you can reach us any time by contacting any member of the team via phone or email.

Competitively priced Professional Indemnity Cover helps keep Members’ costs down and mitigates risk.

BROKER & LENDER ENGAGEMENT

INDUSTRY VOICE

BRAND & REPUTATION Promoting a kitemark of quality and trust with clients and lenders, maintaining sector confidence.

w. t. e. a.

nacfb.org 02071010359 admin@nacfb.org.uk 33 Eastcheap, London, EC3M 1DT

Maintaining an authoritative dialogue on behalf of Members before lenders, regulators and the Government.

@NACFB linkedin.com/in/nacfb

NACFB NEWS

CODE OF PRACTICE

COLLABORATIVE EVENTS

Helping all our Members adhere to a consistent set of principles assuring both lenders and SMEs.

COMPLIANCE & REGULATION Delivering a comprehensive and bespoke compliance support package for all Members.

Hosting the Commercial Finance Expo and CPD accredited workshops alongside regional training and educational roadshows.

6 | NACFB Magazine

PI INSURANCE

Enabling a closer working lender relationship – making processes easier and more time efficient.

Competitively priced Professional Indemnity Cover helps keep Members’ costs down and mitigates risk.

BROKER & LENDER ENGAGEMENT

INDUSTRY VOICE

BRAND & REPUTATION Promoting a kitemark of quality and trust with clients and lenders, maintaining sector confidence.

w. t. e. a.

nacfb.org 02071010359 admin@nacfb.org.uk 33 Eastcheap, London, EC3M 1DT

Maintaining an authoritative dialogue on behalf of Members before lenders, regulators and the Government.

@NACFB linkedin.com/in/nacfb

NACFB NEWS

Dates for your diary Social Media for Business - Leeds When: 13 November – 10:00 - 15:00 Where: Hilton Leeds City, Neville Street, Leeds LS1 4BX

Notes from our sponsor

Social Media for Business - Birmingham When: 21 November – 10:00 - 15:00 Where: Radisson Blu Birmingham, 12 Holloway Circus Queensway, Birmingham B1 1BT Social Media for Business - Gatwick When: 27 November – 10:00 - 15:00 Where: Hilton London Gatwick Airport, South Terminal, Gatwick, Surry RH6 0LL

Andy Bishop UK Director of Business Development Lloyds Bank

Andy Bishop, national director of business development – SME banking at Lloyds Bank, outlines the current state of the market and what opportunities and stumbling blocks there may be for brokers.

What should brokers be aware of with the current state of the market? While we hear concerns about the current state of the market – and undoubtedly some of those are more than justified – we’re currently seeing the broker market continue to expand. From a Lloyds Banking Group perspective, we’re up year-onyear around 30% in terms of introductions and sanctioned lending for brokers. On invoice finance we’re up about 25% and on asset finance we’re up around 30%. That said, for brokers’ clients, some sectors will be experiencing more uncertainty than others, particularly those where they’re heavily reliant on EU migration for staffing. But overall, the market is holding up remarkably well. What are the current opportunities for brokers in this market? The opportunities are enormous, mainly because there’s no ‘one funder’ out there that will be able to do everything to support SME businesses.

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The broker is in a unique position where they have access to whole-of-market funding across traditional finance, as well as secondary and niche finance arrangements. Some of this will be brilliant for SMEs that need more support than a single funder can provide.

What are the biggest stumbling blocks for brokers?

How can Lloyds Bank help brokers to make the most of these opportunities?

The role of Lloyds Bank’s business development managers is to help brokers navigate what can be quite complex client needs.

The Lloyds Bank proposition brings together term lending, invoice finance and asset finance all under one roof. Brokers can access a wide range of products and services for their clients through one single point of contact: their Lloyds Bank business development manager. We also supply a lot of support to brokers; working with them to help them shape transactions and propositions. This is particularly important as brokers seek to go up the value chain and deal with much larger businesses than they perhaps would have done historically, where the financing needs may be more complex.

There are many funders now available in the market, so one of the biggest challenges for brokers is being able to ensure a client gets the right type of finance at the appropriate time.

What is Lloyds Bank’s new offering around personal wealth management? We now offer personal lending for brokers’ commercial clients. This is lending which, from a regulatory perspective, would be considered personal rather than commercial, but is more complex than can be managed than through, say, a residential mortgage or similar. This is a way of dealing with more complex financing needs. It’s a bespoke service offered through our dedicated wealth managers.

And finally, why is it important for NACFB Members to take part in the Lending Data Project? We’re currently working closely with the NACFB on its Lending Data Project. It feeds into Lloyds Bank’s overall strategy of Helping Britain Prosper. The Lending Data Project is an incredibly important piece of insight for two crucial reasons: 1.It’s a demonstration of the positive impact commercial finance brokers are having on SME businesses. 2.It will support NACFB in terms of its share of voice in the regulatory and political environment.

LendInvest Broker Academy When: 27 November – 10:00 - 15:00 Where: LendInvest, Two Fitzroy Place, 8 Mortimer Street, Fitzrovia, London W1T 3JJ NACFB Gala Dinner & Awards When: 29 November – 18:30 - late Where: Park Plaza Westminster Bridge, 200 Westminster Bridge Rd, Lambeth, London, SE1 7UT Commercial Mortgages Financial Day When: 4 December – 8:30 - 16:30 Where: Radisson Blu Edwardian, Vanderbilt 68-86 Cromwell Road, London, SW7 5BT

That’s why I strongly urge all NACFB Members to participate fully in the project. You can find out more about the upcoming NACFB events programme by visiting: www.NACFB.org/events or by emailing Claire Luckhurst on Claire.Luckhurst@NACFB.org.uk

NACFB Magazine | 9

NACFB NEWS

Dates for your diary Social Media for Business - Leeds When: 13 November – 10:00 - 15:00 Where: Hilton Leeds City, Neville Street, Leeds LS1 4BX

Notes from our sponsor

Andy Bishop UK Director of Business Development Lloyds Bank

Andy Bishop, national director of business development – SME banking at Lloyds Bank, outlines the current state of the market and what opportunities and stumbling blocks there may be for brokers.

8 | NACFB Magazine

What are the biggest stumbling blocks for brokers?

How can Lloyds Bank help brokers to make the most of these opportunities?

The role of Lloyds Bank’s business development managers is to help brokers navigate what can be quite complex client needs.

There are many funders now available in the market, so one of the biggest challenges for brokers is being able to ensure a client gets the right type of finance at the appropriate time.

NACFB Magazine | 9

Compliance | update The latest from our in-house compliance team

Top tips for social media in business Following a series of sold out social media workshops, NACFB Compliance Officer Nicholas Murphy shares his top tips on managing your online presence

Nicholas Murphy NACFB Compliance Officer NACFB

n behalf of the Association I have been delivering a series of workshops on Social Media. This has been a refreshing step away from technical and compliance related subjects but sits within our remit of raising professional standards through training and education. The subject was also top of the request list from our Members. Through the course of these workshops I have met many Members all of whom have come with varying technological and digital experience. Ranging from those who do not yet have a business website or a social media account, to those wanting to refine and focus their existing online efforts. The feedback has been overwhelmingly positive and brokers have left feeling more confident and comfortable with the idea of using social media in a professional capacity. In this article I would like to share some of the key learning points from these digital skills workshops with you.

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Understanding the terminology For some of us, posting a tweet with a hashtag and knowing the difference between ‘replying’ and ‘mentioning’ is common practice. However, software and social media platforms are changing and popping up on an almost daily occurrence - even the more experienced among us may across a term we have never heard before.

brand awareness. Quantifying how many times your content has been seen is also a valuable tool, not easily achieved through traditional billboard or newspaper advertising. But, ensuring your followers are regularly engaged in your content will allow you to build a loyal follower base; one that is more likely to remember you the next time they are seeking funding.

Whilst terms like ‘troll’ and ‘viral’ can get the imagination going, the important social media jargon to be considered are ‘impressions’, ‘engagement’ and ‘reach’. These three terms are essential in measuring the success of your efforts online and provide a basis for any social media strategy.

Recognising the opportunity During this course of the workshops, I have listened to many of the concerns of our Members when it comes to starting out on social media. Brokers quite rightly have concerns about privacy and are often sceptical, questioning how social media can be used in the commercial finance sector.

Impression – The number of times a post has been seen on a user’s feed Engagement - The number of interactions with your post Reach – The number of accounts, or individuals, your posts are reaching on social media Achieving a high number of impressions is essential for increasing

Some of the opportunities to be seized from the correct use of social media are lead generation, enhanced credibility, deeper market research, increased industry influence, further web traffic, potential recruitment and more direct customer service. However, as we discuss in the workshop, in the commercial finance sector one of the most important opportunities is brand awareness. Even the major high street banks use their social media to support

NACFB Magazine | 11

Compliance | update The latest from our in-house compliance team

Top tips for social media in business Following a series of sold out social media workshops, NACFB Compliance Officer Nicholas Murphy shares his top tips on managing your online presence

Nicholas Murphy NACFB Compliance Officer NACFB

10 | NACFB Magazine

NACFB Magazine | 11

COMPLIANCE

NACFB Compliance support is available to all NACFB Members. Our team will provide you and your Brokerage with the guidance, training and support necessary to remain fully compliant with both regulatory requirements and the NACFB Minimum Standards.

their brand and bolster existing PR efforts. Indeed, one of the main reasons a social media user will stop interacting with your company account is if they feel they have become your customer not your peer. Creating a ‘brand persona’ Whether you are starting out on your social media journey, or refining your current strategy, it is important to have your customer base in mind when posting to your social networks. By creating a brand persona, you can better describe your typical customer base. This persona is constructed of age, gender, job and interests. In keeping two or three brand personas in mind, and sharing these with your team, you can ensure that the posts on your social networks are relevant and interesting to the clients you are seeking to interact with. Gathering the right content For a consistent and engaging social media presence, it is essential to know the difference between good and bad content: Good content: Relevant news stories Developments in the sector Networking sessions Professional opinions Events attended

Bad content: Political opinions Controversial topics

25 Years Sector Experience

Complaining about customers Anything you wouldn’t say aloud in a public setting Mapping out the strategy In establishing or refining your online presence, working to a strategy allows you to set goals and ultimately measure how successful your online efforts are. For many of the Brokers I have met at our workshops, two to three unique posts per week are manageable. Many social media users fall into the trap of posting multiple times per day, however, maintaining this momentum can prove resource intensive. Your new strategy should state who will be managing the social media for your business, and whether this will be their primary role. This allows for time to be afforded to the staff member to manage the social media effectively. Utilising your website & Search Engine Optimisation (SEO) Your website is the essential anchor point of all your social media efforts. It is important that your website contains links to each of your social media networks, and in turn, each of your social media networks should link to your website.

There are many things you can do yourself to ensure your company site ranks high; post relevant content, ensure there are links on every page, alongside clean and categorised content featuring relevant keywords. However, another essential part of the push to increase your ranking is to ensure your website is linked back to all your posts on social media. Measuring success Without measuring your efforts online, it can be impossible to further strengthen your offering. Each of the major social media networks offer native software to allow you to analyse and report in detail your number of impressions, engagements, video views and reach. By using the analytical tools built in to Facebook, LinkedIn, Twitter and Instagram, you will discover what times of day are best to post and what kind of posts have better engagement with your followers. By taking advantage of the data available to you, over time you will offer a more refined experience for your followers. In attending our workshops, Members have been able to consider and re-visit their social media and digital marketing strategies and we have discussed the tools necessary for analysing and reporting their efforts. I hope to see you at an NACFB Compliance workshop in the new year.

Patron Engagement

Promoting a kitemark of quality and trust before the regulator, clients and lenders maintaining sector confidence

Criticisms of the competition

Search Engine Optimisation (SEO) is the process of maximising the number of visitors to your website

12 | NACFB Magazine

by ensuring your site appears higher on search engine results lists. For example, in the case of Bridging finance, when a potential client enters ‘short term business loans’ into their search engine, where does your company rank?

Members of the NACFB benefit from access to a wide range of bespoke template documents, help-desk support, regulatory updates, targeted workshops and access to our MyNACFB training portal.

Facilitating harmonisation between key stakeholders when new regulation is introduced.

Calendar of Workshops Centralised Personal Support

Hosting bespoke workshops, training sessions and webinars on a diverse range of industry matters.

Delivering high-quality expert insight via email and telephone as well as consultations in person.

Model Office & Pragmatic Support Providing a full suite of the latest customisable working documents for your business.

w. t. e. a.

nacfbcompliance.co.uk 02071010359 compliance@nacfb.org.uk 33 Eastcheap, London, EC3M 1DT

Regulatory Dialogue & Future Insight Maintaining a dialogue with the regulator keeping ahead of the curve.

@NACFBCompliance linkedin.com/in/nacfb

COMPLIANCE

Bad content: Political opinions Controversial topics

25 Years Sector Experience

Patron Engagement

Promoting a kitemark of quality and trust before the regulator, clients and lenders maintaining sector confidence

Criticisms of the competition

Search Engine Optimisation (SEO) is the process of maximising the number of visitors to your website

12 | NACFB Magazine

Members of the NACFB benefit from access to a wide range of bespoke template documents, help-desk support, regulatory updates, targeted workshops and access to our MyNACFB training portal.

Facilitating harmonisation between key stakeholders when new regulation is introduced.

Calendar of Workshops Centralised Personal Support

Hosting bespoke workshops, training sessions and webinars on a diverse range of industry matters.

Delivering high-quality expert insight via email and telephone as well as consultations in person.

Model Office & Pragmatic Support Providing a full suite of the latest customisable working documents for your business.

w. t. e. a.

nacfbcompliance.co.uk 02071010359 compliance@nacfb.org.uk 33 Eastcheap, London, EC3M 1DT

Regulatory Dialogue & Future Insight Maintaining a dialogue with the regulator keeping ahead of the curve.

@NACFBCompliance linkedin.com/in/nacfb

Commercial Finance

Masthaven reaches £500m in assets

Masthaven has announced that it has generated £500m in assets driven by the growth in its diversified lending across short-term and longterm property finance. The specialist bank has also generated £1bn of loan applications since it launched as a bank in 2016. Masthaven reported that over 15,000 savings accounts have now been opened.

Aldermore agrees over £200m of new invoice finance facilities

HTB secures ENABLE Guarantee to support SME housebuilders Hampshire Trust Bank (HTB) has secured an ENABLE Guarantee from the British Business Bank (BBB) to help it finance SME housebuilders across the UK. The transaction is expected to allow the specialist bank and BBB to support the building of new housing to a value of over £500m over the lifetime of the guarantee.

Just Cashflow quadruples max facility size Just Cash Flow PLC has increased the upper limit on its range of flexible finance facilities from £500,000 to £2m following a rise in customer demand. The £2m upper limit applies to new and existing customers and the fintech lender will provide finance significantly in excess of the limit on a case-by-case basis.

Aldermore has announced that it has delivered over £200m of new invoice finance facilities to UK SMEs in the last 12 months. The specialist bank has achieved this by hiring a team of senior business development and relationship managers, enabling Aldermore to provide funding into the private equity, acquisitions, back-to-back funding, asset-based lending and specialist finance spaces.

STB Commercial Finance opens Leeds office

STB Commercial Finance has opened a new office in Leeds as it continues its national expansion. The office – which is based at Minerva House on East Parade – will be headed up by John Gribbon, regional director at STB Commercial Finance. He is joined by Victoria Conway, portfolio and structuring director, and Paul Goodchild, who was recently appointed as regional sales director for Yorkshire.

Roma doubles sales and underwriting teams

Roma Finance has doubled the size of its BDM and underwriting teams. This comes after the bridging and development lender reported an 80% year-onyear increase in H1 2018 lending volumes last month. Its sales team has added six new members.

Assetz to launch property crowdfunding platform in Q4

New property crowdfunding platform Assetz Exchange is set to launch in Q4 2018. The platform – part of the Assetz group of businesses, which includes Assetz Capital – allows users to invest in a range of properties, from student accommodation, privately rented houses and apartments to affordable housing.

Hope Capital launches fixed-fee loan Hope Capital has introduced a fixed-fee loan. The bridging lender’s product is available up to 75% LTV and for a term of between one to six months, while the actual fee will be agreed on a case-by-case basis. Hope added that the fixed-fee loan has no complicated interest calculations or hidden fees.

Octopus Property makes changes to residential products Octopus Property has revamped its bridge-to-let, development exit and refurbishment products. The specialist lender has reduced rates to 6.99% per annum for its bridge-to-let and development exit products. These products have a minimum loan size of £500,000 and loans over £10m will be considered.

Fund your clients faster. A bank of knowledge not simply a bank of money Our support for your broker business goes beyond finance. We can connect you with the right people, with the right knowledge, to boost your clients’ businesses and help them grow. Search: NatWest Brokers

Esme is the straightforward business loan. No early repayment charges and no hidden fees. Just a simple, paperless application and competitive rates. £10k - £150k Unsecured from 1 - 5 years

Search ‘Esme loans’ Applicant must be

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NACFB Magazine | 15

Commercial Finance

Masthaven reaches £500m in assets

Aldermore agrees over £200m of new invoice finance facilities

STB Commercial Finance opens Leeds office

Roma doubles sales and underwriting teams

Assetz to launch property crowdfunding platform in Q4

Esme is the straightforward business loan. No early repayment charges and no hidden fees. Just a simple, paperless application and competitive rates. £10k - £150k Unsecured from 1 - 5 years

Search ‘Esme loans’ Applicant must be

14 | NACFB Magazine

NACFB Magazine | 15

Cover Story | feature

The rise of the ‘super broker’ With a surge of specialist brokers eyeing new markets, could the sector be witnessing the emergence of intermediaries whose offerings are more diverse than ever before? Tom Belger Senior reporter Bridging and Commercial Super brokers – according to one specialist finance lender – are adaptable introducers capable of providing a service across a range of specialities to serve their clients better. For example, this means that a broker would be able to support a client when they are looking for property or business finance. One industry expert also felt that brokers would be “foolish” to limit their market by just operating within one realm; by operating across more markets, it meant that brokers had more opportunities to write business. These opinions suggest that we might be seeing the end of the specialist finance broker. A recent survey from Investec Asset Finance Group backed up the rise of these multi-disciplinary brokers after it found that 57% of asset finance brokers were aiming to expand into new sectors.

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When asked how they would achieve their growth targets, 37% expected to shift towards different products, including specialist loans such as VAT finance or those with more complex structures. Is there a rise in super brokers entering new markets? Zuhair Mirza, principal at Avamore Capital, said it had seen a rise, and that in many cases it could see the rationale for this given that relationship-driven brokers want to assist their clients as broadly as possible. “We tend to see that when brokers do enter new markets they invest in building both knowledge and relationships in that sector. “One example of this which we have seen is at the NACFB round tables.” Recently there has been an increase in lenders, packagers and associations hosting workshops to help train brokers on different areas of finance. Throughout the year the NACFB has hosted several roundtable broker days focusing on various areas of the specialist finance market, ranging from bridging finance to invoice and factoring discounting.

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Cover Story | feature

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COVER STORY

Innovation and diversification are the key drivers to being successful in this market.

The series of bespoke events allow broker members to learn more about these areas of the market and hear from lenders operating in those sectors. Some 132 brokers attended six roadshows held by Octopus Property across England last year, and the lender’s event schedule in 2018 saw similar numbers. In August, Brightstar launched a specialist lending webinar programme. The distributor’s online events have been designed to help brokers maximise the opportunity presented by the expanding specialist market. Nick Holding-Parsons, asset finance adviser at Arc & Co, felt that there had definitely been a notable surge in brokers entering new sectors. “Where your typical real estate debt adviser would only be focusing on development facilities or investment products, you now have them also providing equity packages. “This means they can offer their clients more than one service.” As to why brokers might look to diversify their offerings, Jo Breeden, managing director at Crystal Specialist Finance, said that clients had much more complex needs than just offering residential or BTL mortgages. “With market conditions, changes in legislation and investors’ desire to maximise yields, we are seeing more portfolio buy-to-lets, bridging, semi-commercial and development applications. “These sectors need to be part of a broker’s arsenal.” Meanwhile, Kevin Vendel, head of sales at Spotcap, added: “It wasn’t long ago that our partners were purely commercial finance brokers. “For example, we’re increasingly seeing mortgage brokers keen to

18 | NACFB Magazine

learn about business loans and curious about our product.”

grow, having more than four could then be more of a commercial buy-to-let.

Does this mean the end of the specialist finance broker? Chris Oatway of LDNfinance felt the market had changed so much that there was now a requirement for all brokers across the board to upskill and diversify the areas of the market in which they operated.

“The customer may also then need a second charge to do refurbishment to their property, or a bridge for a chain-break opportunity.

“There is certainly still a need for ‘specialist knowledge’ in the more complex areas of lending, but it would be foolish for any broker to limit their market by just operating within one realm.

Richard Drake of Drake Business Funding said commercial brokers with an indepth knowledge in certain funding areas would provide an advantage.

“Innovation and diversification are the key drivers to being successful in this market. “Simply the more markets in which you operate, the more opportunity you have to write new business.” Nick added: “Like anything, if you limit your expertise, you are reducing your market exposure. “If brokerages can specialise in a number of various debt and equity models for their clients, then they are providing a more well-rounded product.” However, Nick did not believe that this was the end of specialist brokers. “If anything, while times are currently a bit more challenging, specialist brokers should be thriving since the typical sources for funding are more limited. “This gives brokers the opportunity to pick up new clients and introduce them to different funding opportunities.” Jo also felt the role of the specialist finance broker was far from over. “Borrowers go through the cycle and have different needs, for instance their first buy-to-let mortgage could be niche, then having one to four may be a mainstream buy-to-let, but as they

“These fields require a level of expertise to be realised.”

“Specialist commercial brokers having the right knowledge and skills, especially in the process for applying for finance, is vital to maximise the initial approach to the right lender(s) as this is often the key stage in any funding application, they would also be aware of current trends in their fields of expertise.” Looking from a lender’s perspective, Zuhair said: “In some instances, particularly with complicated or unusual cases, it may be better for a specialist broker to assist. “Having said that, we see a number of diversified brokers having specialists in a number of products.” Kevin added: “Perhaps it isn’t important to have specialist brokers. “There’s no reason why brokers can’t maintain a portfolio spanning a range of loan products from varying specialities without compromising the quality of their service. “It ultimately means that products have to offer even more value to stand out from the crowd. “I would argue that we’re not seeing the last of specialist brokers, but the first of the ‘super brokers’, intermediaries comfortable providing a service across a range of specialities to serve their clients better.”

LOWEST RATES & %%COMMISSION 2% AVAILABLE TO ALL ALL BROKERS

COVER STORY

Innovation and diversification are the key drivers to being successful in this market.

18 | NACFB Magazine

learn about business loans and curious about our product.”

grow, having more than four could then be more of a commercial buy-to-let.

“The customer may also then need a second charge to do refurbishment to their property, or a bridge for a chain-break opportunity.

Richard Drake of Drake Business Funding said commercial brokers with an indepth knowledge in certain funding areas would provide an advantage.

“These fields require a level of expertise to be realised.”

LOWEST RATES & %%COMMISSION 2% AVAILABLE TO ALL ALL BROKERS

Top | story

Our bridging loan helped The Clarks to downsize before they’d even sold. The upside of that, we helped them do it.

Our pick of the latest Patron news

Lending for the new normal.

FCA confirms greater access for SMEs to the FOS Theo Osborn Reporter Bridging & Commercial

he FCA has confirmed plans to extend access to the Financial Ombudsman Service (FOS) to more SMEs. The service will now be available to SMEs which have an annual turnover below £6.5m and fewer than 50 employees or an annual balance sheet below £5m. This should account for around 210,000 additional SMEs, which will now be able to refer unresolved complaints to the ombudsman service. Respondents to the FCA’s January 2018 consultation strongly supported the extension of the ombudsman service to larger SMEs, charities and trusts, and a new category of personal guarantors. The changes will allow a wider number of SMEs to access the service, so they can seek redress.

The criteria for access to the service have been amended so that SMEs must only meet the turnover test and one of either the headcount or balance sheet total tests, not all three tests as previously proposed. The FCA made this change in response to feedback that applying all three tests would unfairly exclude certain types of SME, for example those with relatively low turnover but 50 or more employees. The FCA has published near-final rules, so the ombudsman service can start taking practical steps towards putting the extension of its remit in place, including starting recruitment of additional staff with the skills and experience required. The FCA intends to publish final rules later this year, following its normal scrutiny of the ombudsman service’s draft business plan and budget. The regulator expects the final rules on the SME extension to come into force on 1 April 2019.

Andrew Bailey, chief executive at the FCA, said: “The changes we are making are as far as we think we should go within our powers, but they will provide access to the ombudsman service for a significant number of smaller businesses. “Before this their only option was potentially a costly legal one through the courts. “The changes are an important extension of the ombudsman service’s role and remit. “We will work closely with them to ensure that they are ready, so that SMEs are able to benefit from the new rules as soon as they come into force.” Together with the near-final rules, the FCA has published a consultation on raising the maximum amount of compensation the ombudsman service can require financial services firms to pay out from £150,000 to £350,000.

At Together our experience spans over decades and tens of thousands of bridging loans. So no matter the circumstances our flexible approach to lending means that it’s perfectly normal to us.

Find out how we do things differently at togethermoney.com/bridge or call 0333 455 3900 For professional intermediary use only. ‘The Clarks’ has been used for illustrative purposes only.

20 | NACFB Magazine

Top | story

Our bridging loan helped The Clarks to downsize before they’d even sold. The upside of that, we helped them do it.

Our pick of the latest Patron news

Lending for the new normal.

FCA confirms greater access for SMEs to the FOS Theo Osborn Reporter Bridging & Commercial

At Together our experience spans over decades and tens of thousands of bridging loans. So no matter the circumstances our flexible approach to lending means that it’s perfectly normal to us.

Find out how we do things differently at togethermoney.com/bridge or call 0333 455 3900 For professional intermediary use only. ‘The Clarks’ has been used for illustrative purposes only.

20 | NACFB Magazine

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

Assetz to launch property crowdfunding platform in Q4 New property crowdfunding platform Assetz Exchange is set to launch in Q4 2018. Tom Belger Senior reporter Development Finance Today

ew property crowdfunding platform Assetz Exchange is set to launch in Q4 2018.

The platform – part of the Assetz group of businesses, which includes Assetz Capital – allows users to invest in a range of properties, from student accommodation, privately rented houses and apartments to affordable housing. Investors can choose to invest in properties to be rented out – at market rent or affordably – or in properties to be built and sold on according to market demand.

new housing on to the market for rent or for sale as appropriate to local market conditions and demand.

everyone, but still aiming to deliver a healthy income for that activity, so that everyone benefits.

“We will also act as the gateway for existing tenanted, landlordheld housing to be acquired, improved, rented and released for sale to homeowners over time, again as appropriate to local market conditions.”

“Combined, these two businesses provide a model to get housebuilding moving faster in the UK – while also delivering for our investors.

Assetz Exchange is currently fundraising for launch with a Seedrs equity investment crowdfunding campaign with a pre-registration page.

Investments can be made privately or through an Isa with all properties being fully managed. Stuart Law, founder of the Assetz group of companies (pictured above), said it has created Assetz Exchange to address a number of issues with the housing market.

“They will also be able to choose to not only fund normal market price properties, but also properties with affordable rents and affordable sale prices.

“We’ll direct investors’ capital to projects and investments that bring

“We’re making entrepreneurial philanthropy accessible to

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No nonsense, no red tape We’ve got commercial mortgages covered. We’re breaking through barriers to give your customers a decision in principle within 24 hours. Loans from as low as 5.9%.

Welcome to fast,

It is also accepting pre-registrations from potential investors on the Assetz Exchange platform. “Investors can choose to invest in a housing development to be held for the long term, or they could carry out shorter-term investments by delivering new housing into the market by building housing schemes for rent or onward sale to homebuyers,” added Stuart.

An aftermarket will provide an optional exit if there is demand.

“We are creating a financial hub to help provide more solutions to help solve the housing crisis here in the UK.”

Commercial mortgages without the hassle

We will act as the gateway for existing tenanted, landlordheld housing to be acquired, improved, rented and released for sale to homeowners

Find out more at assetzcapital.co.uk/borrow or call 0800 470 0432 Assetz SME Capital Ltd 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 (Reg No: 724996). ‘ Assetz Capital’ is a trading name of Assetz SME Capital Ltd.