<
p>Very rarely in the bridging industry and indeed in any form of consumer credit transaction, does every cog in the mechanism of a deal gather in one room to discuss the industry.
But that’s exactly what happened last week, B&C sat down with a client, broker, surveyor, conveyancer, insurance provider and the lender to discuss how each of their roles had been affected by the existence of alternative financing methods.
The revelation that came from such a meeting - simply revolved around one of the most basic principles of any deal, in any industry – relationships.
In this case, Heritage Commercial Finance – a relatively new lender to the bridging market, exemplified that decisive relationships right down the chain of a theoretical deal – was the secret to its exponential growth.
Off the back of sealing the ‘Highly Commended for Best Bridging Newcomer’ at this year’s B&C awards, the lender has continued to extend its reach across the industry, with a very simple dedication to supporting local and national brokers.
Upon listening to those towards the beginning of the chain - the broker, surveyor and client, it became clear that local developers’ businesses had been shaped by the revelations of alternative financing methods.
In one such case, the client, a local property developer, had been able to capitalise on more opportunities than would otherwise have been open to him, knowing that he could rely on the lender to back him in his purchases.
This ideology is a primary focus for one of the industry’s newest lenders, with directors Allison and Mark focussing a large proportion of their efforts on the immediate area – in a bid to improve life in the ever-improving city of Hull.
“Most businesses tend to have a natural affinity to their local area and this is particularly true in our case…” Dave Stead, Operations Manager at Heritage commented; ”…although we are relatively new to the bridging lending market, there is a long business history behind Heritage which connects us with business both locally and nationally. But more importantly the last 18 months have shown us just how many opportunities are available in the property sector.
“In most cases it is the lack of available funding which holds these projects back and so we are delighted to be able to provide finance and some impetus to the local economy. “
Furthermore, a local advisor also spoke of how his role had also been sculpted by the aid of Heritage – he and his team had been able to recommend more opportunities to clients – knowing again that his relationship with the lender would enable the client to progress with the acquisition.
One such example, was former NACFB Director, Andrew Pritchard – whose business, Simple Commercial Finance is one of many local brokerages supporting growth within the area.
“Merely acting as a signpost for funding is of course difficult when considering all of the options that are open to me…” Andy said, “...but for me I rely upon my relationship with decision makers, and it’s that concept that I relay to my local clients and ensures that they continue to bring me business”.
This discussion however, brought about another key concept in an industry as volatile as financial services, how important is the understanding between a lender and its clientele, and how can this understanding help to shape a lender’s services?
Furthermore, a concept that is often overlooked - is the relationship between a lender and the tertiary services that act as the lynchpin behind any bridging finance transaction, whether on a national or local scale.
When considering insurance and legal services, in this case, both TowerGate Insurance and Graham and Rosen were keen to stress that their knowledge of what criteria and advisory methods are best suited to the lender, are vital to the day-to-day running of their respective businesses.
Priding itself on supporting local growth within the ever evolving city of Hull, Heritage and its service levels have become synonymous with providing the necessary support for local property developers.
Having an understanding with key components – means that local developers are not left waiting in the wings for financial support.
Speaking on the importance of an understanding between services, Adam Waller from Graham and Rosen, said: “To operate in the way that I like to, in an ever popular industry such as bridging, I rely solely on an understanding between my legal obligations, and those requirements of my client - the lender.”
“It means one very simple thing; I can maintain the commercial interests of the lender, knowing that each and every cog of the process is working together synchronously”.
Commenting on selecting key partners, Dave Stead, Operations Manager at Heritage, said: “As a lender we are fortunate to have good working relationships with our legal team, brokers, surveyors and insurers – all vital parts of completing a deal quickly.
“Many borrowers will understandably focus on the importance of the Valuation Report, but the other elements in the process can often have just as much significance. Working closely with our partners in the process tends to ensure that information is shared and any issues dealt with as quickly as possible.”
If not beneficial from a productivity perspective, the round table appeared to cement both a working relationship and develop a clear understanding of what role is played by each party in a theoretical transaction.
In this case, a local understanding of the significance of each role was clearly integral to the continued success of each company – and more so – even in a market with master brokers and corporate distributors– there is still sustained dependence upon the ‘old fashioned’ credit transaction.
Very rarely in the bridging industry and indeed in any form of consumer credit transaction, does every cog in the mechanism of a deal gather in one room to discuss the industry.
Leave a comment