< p>With Watts Bridging Finance recently becoming a member of the astl, Director Phil Gray speaks to B&C about becoming a ‘broker lender’.

Watts Commercial Finance is one of the UK’s biggest commercial brokerages outside of London, with a base of 1500 intermediaries and IFAs.

Last August, the Broker decided to activate its short term lending offering, launching Watts Bridging Finance Ltd - having brokered around 100 bridging deals in 2013.

Its lending book currently stands at £500,000 and it aims to grow this to between 3 and £5 million in the next two years. The firm provides funds to its lender arm, via internal company funds and private investors - however the firm is rumoured to have attracted interest from larger investors.

Process
 
On the process of creating Watts Bridging, Phil Gray said: “We came up with the idea and then approached our investors. Once we had secured initial funding we set about obtaining

all our necessary licences and accreditations, part of which was applying to join the ASTL (Association of Short Term Lenders), something we felt vital as a small but eager to grow firm. We also made sure that we had our expert legal and valuation teams in place and all the correct documentation set up and internal systems, etc before even considering a bridging loan.

“Once this was all done we began to think about lending. It was vital that we built the business on solid foundations rather than running before we could walk. Reputation is everything.

Commenting on how Watts Bridging interacts with Watts Commercial Finance, he said: “The two companies are ran separately, one provides products and one advises on the best products and bespoke solutions, they are completely different.”

Service

Phil states that whether you are a broker or a lender, all customer solutions should be bespoke to the client and tailored to their needs. The best advice must be given at all times and only recommending your own funding solution, if it’s the best option for the client.

Long sighted

Within bridging, as ever, the exit is of prime importance. Phil said: “We also make sure that we look at the overall picture for the client looking at the short and long term solutions, so the client does not end up with a bridge that they cannot exit.”

Recruitment

To have the correct type of business, apt people are needed to optimise its functions. Watts Commercial has just been through one recruitment drive and plans to employ one further commercial manager and one further commercial assistant in the second half of this year.

“We have a balanced approach of recruiting externally and developing and rewarding our existing team.”

“Both, you need a balance of experienced people with expertise, and at the same time you must develop and grow your team and help they develop as individuals...”