1.    What does your role consist of at Funding 365?

MS – I’m responsible for running Funding 365 on a day-to-day basis. In a small company, an MD has to be prepared to get involved in all aspects of the business, from financing negotiations and developing partner relationships to IT solutions and HR.

2.    What is your past experience and did you always want to be in finance?

MS – Before moving into bridging finance, my career was spent in structured finance in investment banks such as Barclays Capital and Goldman Sachs. Essentially, my job was to obtain cheap and flexible funding for finance companies such as credit card issuers, car finance providers, prime and sub-prime mortgage companies etc.  A job in finance was always my aim - I think it stems from watching Wall Street as a boy!

3.    What makes Funding 365 currently stand out in the market?

MS – We have big lending power, but because we control our credit in-house we can also move really quickly. We have immense loyalty from the packagers and brokers who have used us - they know that if they need a loan to be completed quickly, we can do it.  

4.    Do you think there has been a lack in SME funding over recent times?

MS – Yes.  I think this lack of funding has been well publicised.  You can’t blame the banks however.  They’ve been told to hold more capital, more liquidity and more Government bonds.  They can’t do this and lend more to SMEs and consumers at the same time.  This is why the alternative finance industry is more important than ever.

5.    How important is technology in the short term finance sector?

MS – Every lender will tell you that things like fast online credit scoring, Google street view and search engines that can give you background on a borrower or a property are essential.  Peer to peer lenders will tell you that technology is critical to allow them access to financing.  However, I don’t think anyone will ever convince me that technology can make manual underwriting redundant in the bridging sector - loans are just not homogenous enough.

6.    What would you change about the short term finance market and why?

MS – I would like to see the industry associations make a list of approved law firms and encourage brokers to steer borrowers towards one of these firms for their conveyancing.  Too many borrowers use law firms that just don’t have the ability to move quickly enough for bridging needs - some lawyers still post all correspondence rather than use email!

7.    What exciting plans does Funding 365 have in the next six months?

MS – We have just signed up a securitisation funding line that gives us the financial depth to take on the industry head-on. We’re also in the middle of a branding development process and will soon be launching a new website and marketing campaign which will showcase our distinctive offering.

8.    How do you think the short term loans market will change in the next 12 months?

MS – I believe that the London market is overheated and could see a not-insignificant correction in the next 12 months.  If this does transpire, it will put a lot of pressure on those lenders who have been highly aggressive in offering high LTV loans within London and the South East.  

Failing such a correction, I think we shall see a steady march towards either outright regulation of the industry or a half-way house of self-regulation.

9.    What is more important in the short term finance market - experience or innovation?

MS – They are both important, however if I had to pick one, I would say experience is more likely to lead to business longevity.

10.    What is the most interesting case you have dealt with at Funding 365?

MS – We pride ourselves on our speed and frequently execute ‘Rescue Finance’ transactions.  We completed a £6.2m loan within a space of 3 days where the borrower had been let down by another lender (who couldn’t raise the funds) after 6 months of diligence.  The borrower’s property was to be sold via auction by a receiver, but planning permission to allow the building of a 15 storey building on the land was in its final stages.  We completed the loan and saved the property from being auctioned. The planning permission came through 10 days later and trebled the sale price of the building - saving the borrower many millions of pounds - he was very happy!