NACFB & PATRON NEWS
NACFB Commercial Broker Awards 2023 open for entries
They’re back! Whether you are a sole trader broker, a regional player, or a national brokerage, the NACFB Commercial Broker Awards 2023 are the ideal way to show your clients, peers and lender partners that you have a recognised track record of both success and expertise. Open exclusively to NACFB Member brokers, this year firms can choose to enter up to 15 categories here including two new accolades - Service Excellence Award and Industry Ambassador of the Year. The judging and voting process will be announced separately and award winners will be revealed and presented with their prestigious trophies at an in-person ceremony on Friday 15th September at Lancashire Cricket Ground in Manchester. Full details on how to enter alongside an exclusive early bird discount on ceremony tickets can be found here, and if you missed out on last year’s awards, watch the highlights now.
NACFB Commercial Broker Awards 2023 entries
Consumer Duty: NACFB seeks unified approach from lenders
The penultimate major milestone of the FCA's Consumer Duty passed on Sunday 30th April. All lenders in scope should by now have completed the
reviews necessary and, as product manufacturers, should have shared this with
their intermediary panel of broker distributors. Early indications from NACFB
Member brokers suggests that only a small minority of Patron lenders have yet
made the necessary information available, and the Association will soon be
issuing lenders a reminder and sharing guidance on the expectations of the
intermediary community. NACFB managing director, Norman Chambers, said: “Many
lenders and manufacturers operating in other professional service sectors have
hosted this information on their website, akin to a privacy notice, and shared
the URL with those acting in a distributor capacity. The NACFB recognises that
this approach is the simplest and most effective way to meet requirements and
would help to ensure a greater level of consistency across the intermediary-led
lending community.”
NACFB, Consumer Duty
Commercial Broker: Basel 3.1 and the impact on SME lending
The Prudential Regulation Authority (PRA) has introduced proposals for the implementation of Basel 3.1 prudential standards in the UK. These standards would govern how banks are supposed to keep capital ‘on hand’ so as to cover potential losses on loans. "In the case of SME lending, the PRA has overestimated the benefits of tighter prudential standards as regards these small, systemically unimportant banks," says Dr Andrew Mell, technical adviser at Oxera. Writing in the latest edition of Commercial Broker magazine, Andrew explains the risk weightings for both small and large banks and shares how the PRA is reviewing how those risk weights should be determined for all kinds of loans including loans to SMEs. Generally speaking, risk weights for SME lending are set to increase. Read the full article here.
Commercial Broker, Carry that weight?
Partner spotlight: Claiming capital allowances on commercial property
SMEs that own commercial property can claim capital allowances not only on plant and
machinery such as equipment, machinery and business vehicles, but also items
that are embedded within the property. Embedded fixtures and fittings include
heating, plumbing and electrical systems, wiring, lifts, air-conditioning and
kitchens. Claiming for capital allowances can free up funds and help improve an
SME’s borrowing profile. Tax specialists and NACFB Partner Catax (a Ryan
company) works with brokers to improve their SME clients' tax position. To find
out more and book an appointment to explore ways in which the service might be
useful to clients looking to finance commercial property visit the Catax page on the NACFB website.
Partner spotlight: Catax (a Ryan company)
Magnet Capital widens lending criteria
Magnet Capital has its lending criteria as part of the firm’s continued growth strategy for 2023. The changes include increasing the largest facility amount to £2.5 million, up from £2 million. The NACFB Patron has also widened its geographical range to include additional regions in the north of England, as well extending its reach further into Cornwall. The firm’s lending geography now covers all southern England and part of South Wales. Magnet Capital specialises in small residential construction projects including new builds, conversions and refurbishments. Ashley Ilsen said: “Building a loan book based entirely on development finance is no mean feat but our experience and know-how in this market continues to put us in an exceptionally strong position and sets us apart in what is already a very busy space.”
Magnet Capital, Press Release
Accelerated Payments launches new trade finance product
Accelerated Payments has announced the launch of AP Trade Finance (APTF) aimed at businesses operating on a global scale, especially in industries such
as manufacturing. By pledging their inventory as collateral, SMEs can access
innovative financial services that would otherwise be unavailable due to a lack
of necessary securities for traditional financing options. Unlike traditional
trade finance models, APTF leverages a logistics-intensive processes that
allows the company to assume full control over goods at the manufacturing site
and delivery to the SME client. “We’re proud to be reimagining the way
businesses operate on an international scale by providing unparalleled
flexibility and efficiency,” said Ian Duffy, CEO of the NACFB Patron.
Accelerated Payments, Press Release
Record commercial mortgage rate reductions at Allica Bank
Allica Bank has announced record rate reductions across its commercial mortgages product range with reductions by up to 1.20% on owner-occupied
commercial mortgages and 0.90% on commercial investment mortgages with a
maximum value of £10 million. This is the biggest reduction in rates in the
history of the NACFB Patron. The bank also has an initiative that allows
businesses to achieve a further discount of between 0.25% and 0.50%, depending
on loan size, EPC rating or debt service cover. Commenting, Nick Baker, chief
commercial officer said: “UK businesses have been through a period of sustained
uncertainty and increasing costs, but many now see an opportunity to grow and
need our support on their journey."
Allica Bank, Press Release
Assetz Capital supports 7,000+ new homes in 10 years
Assetz Capital is celebrating its 10-year anniversary with the announcement that over the course of its history it has supported the
construction of over 7,000 new homes. Further, with property development
finance, bridging loans and commercial mortgages, the company has supported
well over 1,000 businesses, lending over £1.5 billion. Stuart Law, founder and
CEO at the NACFB Patron, said: "It is humbling to see what our team at
Assetz Capital has achieved over the past decade, alongside its funders
providing loan capital for us to lend."
Assetz Capital, Press Release
OSB Group issues strong trading update
OSB GROUP Plc has issued a trading update for the period from 1st January 2023 to date. The update shows a strong financial and operational
performance with organic originations of £1.2 billion in the first three months
of 2023. Underlying and statutory net loans and advances increased by 3% to
£24.2 billion. The Group’s three months plus arrears balances remained stable
at 1.1% as at 31 March 2023. In addition, the NACFB Patron has repurchased
£20.1 million worth of shares at the end of April under the £150 million share
repurchase programme. Commenting, Andy Golding, CEO said: "The strength
and resilience of our business model, our strong capital and liquidity
position, secured loan book and proven risk management capabilities position us
well to deliver attractive and sustainable returns across the cycle and I look
to the future with confidence."
OSB Group, Press Release
FW Capital helps SME paint a picture of positive growth
Cheshire-based Polar Specialist Coatings is using investment from NPIF – FW Capital Debt Finance, which is managed by FW Capital and part of the
Northern Powerhouse Investment Fund, to finance growth and new product
development. The six-figure funding will help launch a new eco-friendly bitumen
paint product. Commenting on the transaction, Laura Rees, senior investment
executive at the NACFB Patron said that the business is "bringing to
market an exciting new product which is eco-friendly and aligns with FW
Capital’s purpose and values.”
FW Capital, Press Release
FSE Group supports holiday cottage agency
One of the UK’s leading high-end holiday rental providers, luxurycottages.com, has received financial backing worth £500,000 to support
the continued growth of the business. Founded in 2019, the business will now
get a funding boost from the Midlands Engine Investment Fund (MEIF), provided
by The FSE Group Debt Finance Fund and backed by the Recovery Loan Scheme. Ryan
Cartwright, investment manager at the NACFB Patron, commented: “This is a truly
exciting time for Luxury Cottages as the rise in popularity of “staycations''
continues to boost the sector.”
FSE Group, Press Release
Kingsway Finance secures new £10m funding facility
A new £10 million facility from British Business Investments will enable Kingsway Finance to increase its funding capacity to UK SMEs. The news follows record figures across the whole of the Praetura Lending Division in 2022, for the second consecutive year. The division’s combined loan book has grown to more than £330 million, with ambitions to increase that significantly in 2023. The NACFB Patron also announced their formal accreditation as a lender for the new iteration of the government-backed Recovery Loan Scheme (RLS) by the British Business Bank in February this year. Paul Bradbury, Kingsway’s commercial director, said: “This new funding facility from British Business Investments will enable that trajectory to continue, so that more brokers and their SME clients can benefit not only from the funding we offer, but the exemplary service levels that we pride ourselves on providing.”
Kingsway Finance, Press Release
HTB completes £7.4m facility for later life development
Hampshire Trust Bank (HTB) has provided an experienced developer of modern care home and assisted living facilities with a £7.4 million loan for a substantial development in Shipley, North Yorkshire. The facility will fund the development of 56 apartments for occupation by over-55s at a site known as Canal Works in Shipley. The transaction was complex, as the borrower had built a care home which was pre-let to an operator and sold to a fund. They obtained planning consent for the Canal Works scheme and the transaction was structured as such that the borrower provided the site and a modest sum of cash as equity. A trusted mezzanine provider HTB had worked with before delivered a mezzanine slice and the bank provided the senior facility of £7.45 million. The deal, which completed in February, provided an overall facility for 65% Loan to Gross Development Value, with the project commanding a total Gross Development Value of £11.44 million.
Hampshire Trust Bank, Press Release
Secure Trust Bank appoints North West sales director
Secure Trust Bank Commercial Finance has expanded its nationwide network of sales professionals with the appointment of Andrew Welden as regional sales director for the North West. Andrew joins from Breal Zeta CF, where he led on the firm’s asset-based lending strategy across Merseyside and Cheshire, with a focus on facility sizes between £5 million and £150 million. He also helped the firm establish a presence in Manchester as it opened a new office in the city. As part of the firm’s UK-wide origination team, Andrew will be helping to drive deal activity across the region to deliver flexible asset-based lending solutions to some of the UK’s most innovative businesses, as well as building on the NACFB Patron’s existing network of key introducers.
Secure Trust Bank, Press Release
JD Capital Finance merges with Spark Finance
Spark Group have announced it has merged its corporate finance broking activities with NACFB Member JD Capital Finance, subject to FCA consent. The merger is expected to create value for both parties by leveraging Spark’s proficiency in generating debt opportunities with JD Capital Finance’s deep experience in placing debt business, wider lending panel and connections in the industry. Both parties share a long-term goal of automating the placement and execution of SME debt in the UK. As part of the merger, Jamie Davies will become head of Spark's broking activities and join their senior management team.
Spark Finance, Press Release
COMMERCIAL FINANCE
Approved Business Finance hit £300m milestone
Milton Keynes-based asset finance brokerage Approved Business Finance has announced a record year of business, facilitating more than £105m-worth of finance and taking the total amount of finance it has facilitated to over £300m since its inception in 2019. Approved has also welcomed two new shareholders, with directors George Dunn and Tom Sudds both taking on shareholder responsibilities. Both are longstanding members of the Approved team with a deep understanding of the business and its industry.
Asset Finance International
LHV secures UK Banking Licence from the PRA
LHV Bank, a leading provider of Banking Services and SME Lending solutions, announces it has been authorised as a credit institution by the Prudential Regulation Authority (PRA), becoming the first institution to receive a banking licence without restrictions in 2023. The licence means it can accept customer deposits and transition from operating under the temporary permissions regime as a branch of Estonian retail bank AS LHV Pank (LHV Pank) to being a fully authorised and regulated bank by both the PRA and Financial Conduct Authority.
Finextra
Simon Kirtikar buys majority stake in The Mortgage Broker Group
Sam Kirtikar, former managing director of Clever Lending, has acquired a majority stake in The Mortgage Broker Group, and will take over as active chief executive of the business. He takes over from founder Darren Pescod, who will become a minority stakeholder in the firm. "The Mortgage Broker is a very strong brand, with some really skilled advisers within it", Mr Kiritkar said. "Having had some excellent achievements in the past, including top-rated customer reviews and award-winning brokers, I am delighted to have the opportunity to come back into the business having steered it through the pandemic, and really have the opportunity to help it grow".
Mortgage Solutions
Walker Morris boosts motor finance regulatory team
Law firm Walker Morris has appointed Russell Kelsall as a partner and head of consumer and motor finance in its regulatory team. Kelsall was formerly a partner at TLT LLP, where he led a team of non-contentious and contentious lawyers specialising in consumer, motor, and asset finance. He has recently advised the Finance & Leasing Association (FLA) on its lobbying of HM Treasury for changes to the regulation of consumer credit and has been instructed by the FLA to review best practice guidance for the industry.
AM Online
REGULATION & COMPLIANCE
Capita clients warned of data breach fallout
The Financial Conduct Authority (FCA) has contacted Capita's corporate clients, including Aviva and Phoenix Group, urging them to assess whether their customers' data has been compromised after a cyber-attack on the outsourcer in March. The FCA has also contacted insurance companies which use Capita for administration, as well as annuity providers Pension Insurance Corporation, Rothesay and Just Group. Capita is still handling the fallout from the cyber hack, which saw staff abruptly locked out of their systems in late March. The FCA said companies had a responsibility to alert affected consumers if their data had been affected, and notify regulators including the Information Commissioner's Office. Aviva told the FT that there was “no evidence” that its customer data had been accessed.
The Guardian
FCA promises to listen to whistleblowers
The Financial Conduct Authority’s approach to whistleblowers will change, the regulator said, after a survey revealed widespread dissatisfaction among those who alert the regulator to wrongdoing. A majority said there was a lack of dialogue and a sense of inaction from the FCA. Georgina Halford-Hall, chief executive of WhistleblowersUK, said: “Financial services whistleblowers are turning to the United States and other countries with a record of taking whistleblowers seriously and treating them with respect and professionalism.”
The Times
UK opens probe into $20bn bid by Adobe for Figma
The Competition and Markets Authority has opened a probe into Adobe’s $20bn proposed acquisition of design software company Figma, with similar action expected by the US and Brussels.
Financial Times
LENDING CONDITIONS
Experts warn against Help to Buy scheme return
Experts have warned that resurrecting the Help to Buy scheme would be "insane" and could inflate house prices further, risking young people being unable to afford homes. The Government is considering bringing back the flagship scheme ahead of the general election to appeal to first-time buyers, potentially extending it to cover all homes, rather than just new builds. However, Paul Cheshire, a former planning adviser to the Government and emeritus professor at the London School of Economics and Political Science, said the scheme would increase the price of houses eligible for the scheme by stoking demand without addressing supply. He added: “It's an insane idea which is very damaging to young people because it will land them with houses that they will find they can't afford.” Clive Betts, Chairman of the Housing Select Committee and a Labour MP, said a new Help to Buy programme would be expensive and that the previous incarnations of the scheme inflated house prices.
The Daily Telegraph
UK BUSINESS NEWS
LSE boss rails against high pay complaints
Julia Hoggett, the chief executive officer of London Stock Exchange, has called for a “constructive discussion” on how Britain approaches executive pay to stop companies moving to US. In a statement on the LSE’s website, Ms Hoggett said: “We should be encouraging and supporting UK companies to compete for talent on a global basis, so we remain an attractive place for companies to base themselves, stay and grow. The alternative is we continue standing idly by as our biggest exports become skills, talent, tax revenue and the companies that generate it.” She added: “Often the same proxy agencies and asset managers that oppose compensation levels in the UK support much higher compensation packages in different jurisdictions, notably in the US.” Ms Hoggett went on to say that the LSE was looking to bring together the chairs of listed companies, founders of private companies, asset managers, the Financial Reporting Council, the Investment Association and proxy agencies for talks.
Financial Times
The Daily Telegraph
AI could affect jobs as much as the industrial revolution
Sir Patrick Vallance has warned that AI could have as big an impact on jobs as the industrial revolution and calls for consideration of its wider impact on society. While he acknowledged its potential benefits within industries such as medicine, Sir Patrick raised concerns over the distortion of truth and erasure of jobs. He called for a national review of which sectors would be most significantly affected so plans could be drawn up “to retrain and give people their time back to do [their jobs] differently”.
The Guardian
ECONOMY
Fed implements quarter-point rate rise, signals potential pause
The US Federal Reserve increased its benchmark interest rate for the tenth time in a row on Wednesday, hiking it a quarter of a percentage point to a new target range of 5% to 5.25%. However, the central bank also dropped from its policy statement language saying that it "anticipates" further rate increases would be needed raising hopes that it may be coming to the end of its tightening cycle. But Fed Chair Jerome Powell said policymakers were prepared to do more to curb inflation and cast doubt on speculation that rates could be cut this year. "We on the committee have a view that inflation is going to come down not so quickly, it will take some time," he told reporters, and "in that world, if that forecast is broadly right, it would not be appropriate to cut rates" this year.
Financial Times
Reuters
BoE expected to hike rates again
A survey of economists by Bloomberg shows most expect the Bank of England will increase rates again this month to 4.5% and then keep them on hold. Markets, however, are betting on further hikes bring rates up to 5% by September. But rate rises beyond next week’s meeting will be “highly data dependent” says UBS economist Anna Titareva, while the BoE’s quantitative tightening is expected to help stimulate the economy.
Bloomberg
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