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July 2, 2020

Aldermore provides £5m refinance facility to Quintain subsidiary

Aldermore, the specialist lender, has provided a £5m, 10 year, interest only Commercial Residential Investment refinance facility to Quintain Alto Residential Limited – a subsidiary of Quintain, which owns 13 apartments in Wembley Park’s Alto building, a development completed in 2017. The apartments are privately let and managed by Wembley Park Residential, Quintain’s private sales and lettings management team.

Warren Harrocks of Heron Financial advised Quintain and worked alongside James Maunder Taylor, head of finance advisory at Crestbridge Property Finance who recommended Aldermore for the financing as a lender who would consider a lower debt quantum and provide a high level of flexibility and service. This deal represents one of Aldermore’s major commercial residential investment transactions.

James Maunder Taylor, director at Crestbridge Property Finance said: “I have worked with Aldermore for many years, as the team can always be relied upon to take a commercial approach and deliver quickly; they were the perfect fit to meet Quintain’s requirements for this deal.”

Caroline Baker, lending manager at Aldermore said: “This financing demonstrates our ability to work with large developers to provide them with the bespoke facilities they need.

“We are delighted to be working with Quintain and to have been involved in such a high profile scheme. We worked hard to provide competitive terms which suited Quintain’s requirements and were able to turn the deal around swiftly. This deal underpins why Aldermore exists to back clients like Quintain and their ambitions.”

July 2, 2020

Bank support safeguards jobs at Stafford-based mobility equipment supplier

A leading provider of specialist mobility equipment for elderly and physically disabled people, has been able to secure all the jobs of its 36 staff during the coronavirus shutdown, after securing a Coronavirus Business Interruption Loan Scheme (CBILS) from Lloyds Bank.

Stafford-based Easy Living Mobility is one of the UK’s largest retailers of innovative mobility products including daily living aids, mobility scooters, manual and electric wheelchairs, rise recliners and stairlifts. It has a regional network of 12 stores across the Midlands and Staffordshire and serves more than 35,000 customers each year.

Like many ‘non-essential’ retail businesses, Easy Living Mobility faced unprecedented circumstances from the coronavirus outbreak as it was forced to close its doors to customers. The impact of lockdown on the firm’s cash flow has been significant, and it has had to furlough around two-thirds of its staff.

Lloyds Bank helped the firm to navigate the government support available and arranged a £307,000 funding package using the CBILS. This has enabled the firm to maintain some of its administration operations during the pandemic to respond to customer queries, giving it sufficient funds to pay its suppliers, whilst also being able to meet its own operational overheads and staff costs.

The business has recently re-opened its stores in-line with the government’s gradual relaxation of lockdown measures, but as many of Easy Living Mobility’s customers are aged over 70 years and therefore classified as vulnerable, the business’ recovery from the crisis is likely to be gradual. As such, the loan from Lloyds Bank will also allow Easy Living Mobility to more effectively trade back out of the pandemic over the longer-term.

Established in 2001, Easy Living Mobility also specialises in disabled bathroom conversions and installations and provides a mobility scooter repair service to its customers. The business’ stores are located in Newcastle-under-Lyme, Leek, Cannock, Lichfield, Dudley, Kidderminster, Hanley, Walsall, Northfield, Wylde Green, Telford and Wolverhampton.

The CBILS funding arranged by Lloyds Bank is also supporting Easy Living Mobility’s sister company Motus Medical, a leading supplier of specialist lightweight wheelchairs and powered wheelchairs.

Daniel Griffiths, director at Easy Living Mobility said: “Our specialist mobility equipment improves the quality of our customers’ lives. Unfortunately, they haven’t been able to access our stores or any of our installation or maintenance services during lockdown, and this has had a big impact on our customer’s lives as well as our business.

“We’ve seen a substantial decrease in turnover since the crisis unfolded, so the support we’ve had from Lloyds Bank has been invaluable. The team was really helpful and quickly provided a funding solution to give us the cashflow needed to meet our overheads and other costs during lockdown. This has been a real lifeline for our business.”

Adam Hartshorne, relationship manager at Lloyds Bank said: “The service and support that Easy Living Mobility provides to its customers is second to none. It helps people who rely on disability and mobility aids to live more independently, which is critical to their wellbeing. But as the business predominantly services a market that’s been impacted by the lockdown and social distancing rules, it needed extra support during these challenging times.

“We’re working flat out to help firms like Easy Living Mobility to navigate the disruption caused by Covid-19. This includes lending through the Bounce Back Loan Scheme and Coronavirus Business Interruption Scheme, as well as capital repayment holidays on loans for businesses that have been affected.”

July 2, 2020

Paragon supports Southampton-based printer with £250,000

Specialist SME lender Paragon Bank has continued its support for UK companies impacted by coronavirus, providing a £250,000 Coronavirus Business Interruption Loan (CBILS) to Southampton-based printing firm Indigo Press.

The CBILS loan has enabled the business to trade through Covid-19 as it had to continue to pay trade suppliers, even though turnover was significantly impacted. The company is now seeing sales rise again as the economic activity picks up.

Prior to this most recent support, Paragon also helped Indigo to free up cash flow by refinancing assets, allowing the business to consolidate and re-structure debt.

So far Paragon has lent £6m to UK SMEs through CBILS, with a number of deals in the pipeline due to complete.

Tony Swift, joint managing director at Indigo Press, said: “Paragon has been incredibly supportive. The team were very fast at turning around both of our agreements and extremely professional to deal with. Having experienced many issues with the big high street banks, it was an absolute breath of fresh air.

“We are now in a completely different situation and can now concentrate on what we actually do for a living, so that we are able to guide the business out the other side.”

Amanda Wytenburg, business development manager at Paragon, said: “We are extremely glad that we can support our customers through challenges presented by the pandemic. Our strong relationship with Indigo has meant that we have been able to provide ongoing support, tailored to their needs, both prior to the coronavirus pandemic and during.”

Established in 1989 and now with a turnover of approximately £4m, Indigo Press specialises in B2 Commercial Lithographic printing for a range of clients across many sectors. The business prides itself on being a high quality, competitively priced supplier of fast turnaround litho printed materials.

July 2, 2020

Banking Competition Remedies Ltd (BCR) board update: chairman succession

Banking Competition Remedies Ltd (BCR), the independent body established to implement the £775m Royal Bank of Scotland (RBS) State Aid Alternative Remedies Package, today announces the resignation of Godfrey Cromwell as executive chair and the future appointment of Richard Anderson (currently a non-executive director of BCR) as non-executive chair.

Godfrey Cromwell will be leaving BCR on 30 September, with a handover to Richard Anderson during August. Godfrey has led BCR since its set-up in April 2018 and he has decided to stand down to coincide with the completion of most of the major decisions at BCR.

  • Under Godfrey’s leadership at BCR:
  • The Incentivised Switching Scheme has doubled the SME switching rate through CASS.
  • The Capability and Innovation Fund has successfully allocated £425 million to a wide range of organisations, which are now using these funds to support the development of wider capabilities and competition in the SME banking market.

A further funding round, Pool E, has been created to redeploy some £100m of this sum after two awardees, Metro Bank and Nationwide, each returned £50m to BCR after their own internal strategic reviews indicated a change in business direction.

Godfrey Cromwell said today “We have achieved a great deal. ISS has performed far better than many expected and has recently announced plans for the next phase, taking it to its scheduled conclusion in 2021; CIF awards have been made in full across a portfolio of positive projects and Pool E is on track to allocate £100m funds by early September. Passing these milestones has been a great team effort by BCR staff, directors and our advisers as well as colleagues at HMT, RBS and participating bodies. Every deadline has been met, within budget, and we have recruited two excellent NEDs who add value to the board. All this in the teeth of once-per-generation economic, social and political challenges from Brexit and Covid-19. I am leaving BCR in very capable hands and wish them continued success.”

Richard Anderson said today “I am delighted that the board has asked me to step up to the role of non-executive chair. Godfrey has led BCR from its creation through to the present time with great enthusiasm and skill. I look forward to working with my fellow directors, the team at BCR and all of those with an interest in our work as chair over the remaining period of the ARP. CIF has been crucial in supporting the development of SME banking competitors. But these are difficult times for the SME banking market and for fintechs in general, so we know how important our role is in distributing Pool E and also in holding awardees from all Pools to account against their public commitments.”

The Pool E application and awarding process is currently in train with full details here.

Application Round One of Pool E is due to report w/c 17 August and Round Two of Pool E is due to report w/c 21 September.

July 2, 2020

Aspen completes £1.2m bridge for BVI company

Aspen has completed a £1.2m residential bridging loan for a British Virgin Islands (BVI) company which commenced a debt restructuring programme just prior to the coronavirus outbreak.

The loan, which was completed at a rate of 0.89%pm flat rate with no exit fees over 12 months, was secured on a penthouse in the prestigious Pan Peninsula development in the City of London using the lender’s desktop valuations system.

The client, an experienced foreign businessman, required a quick turnaround to ensure the cashflow of his businesses was maintained during the uncertain period.

Continuing the practice of one underwriter per case, credit manager Harry Baker took the application from start-to-finish.

The lender met all Time-Based Service Excellence Targets with a fully-costed quote issued in the first 15 minutes and a submitted post-search DIP in one hour.

Legals and valuations were instructed within 30 minutes with enquiries and undertaking received same day.

Meetings with the client were undertaken by Facetime and Aspen’s legal partners were able to progress matters quickly, seamlessly working with a third-party legal team to provide the required legal opinion on the BVI Company.

Jack Coombs, director at Aspen Bridging said: “This case shows we are still able to deliver on our Time-Based Service Excellence Targets remotely, regardless of market challenges or case complexity.

“Our experienced team knew what to look for from day one to ensure it progressed in-line with the client’s expectations and to ensure the best turnaround time without any last-minute problems.

“Our business has been built to ensure the highest levels of service whether it’s a simple light refurb, complex legal structures or foreign national applications, and that is why we have seen a record number of brokers registering for our instant quoting ‘Broker View’ platform since the pandemic started.”

Aspen’s rate card has a maximum LTV to 75%, which can be realised through both physical and desktop valuations, and a top loan amount of £3m net.

The lender’s flat and stepped rate products include residential and light refurbishment, residential and medium refurbishment, HMOs, prime semi-commercial and prime commercial property.

The equity-funded lender further streamlined their processes during Covid-19, with full remote capacity and same day pay-out facilities.

July 2, 2020

UK businesses looking to international markets for post-Covid bounce

UK businesses are planning for increased international trade over the next 12 months looking for a post-Covid bounce, finds new research commissioned by Kreston International, a global network of independent accountancy firms.

The research, conducted in May amongst 514 SMEs across the UK and published in a report Trading internationally in 2020 – a post Covid-19 perspective, found that whilst 55% of businesses have cancelled or delayed plans to export to overseas markets or trade internationally as a result of the COVID-19 pandemic, 51% say their view on the importance of international trade has increased.

45% of businesses surveyed expect international trade to return within 12 months, suggesting they are expecting a V-shaped economic recovery. 40% of those surveyed also expect to see increased levels of import trade.

Kreston is a global network of 200 accountancy firms across 110 countries employing more than 23,000 people. The survey was commissioned by five UK Kreston member firms: BHP, Bishop Fleming, Duncan & Toplis, James Cowper Kreston and Kreston Reeves.

Headline findings:

  • 71% of businesses in this survey told us that pre Covid-19 they were trading internationally.
  • 55% of businesses have delayed or cancelled plans to trade overseas as a result of Covid-19.
  • 51% of business leaders say their view on the importance of exporting has increased in a post Covid-19 world.
  • 40% of business leaders surveyed expect to see import trade increase.
  • 45% of business leaders expect international trade to return within 12 months, suggesting they are expecting a V-shaped recovery.
  • Of those businesses that were not trading internationally before the outbreak of Covid-19, 34% say they are likely or very likely to expand internationally in the next three years.
  • 39% of business leaders believe Covid-19 will provide opportunities for their business.

Andrew Griggs, a board member of Kreston International and senior partner at Kreston Reeves said: “Our research has shown that UK businesses are outward-looking, generating considerable revenues from international markets. Covid-19 has, unsurprisingly, placed businesses under varying degrees of stress and temporarily halted much international trade – 80% of businesses told us that they are under a little or a lot of stress, and that 55% of them have delayed or cancelled plans to explore export markets or trade internationally as a result.

“But the research presents a much more positive picture. Over half (51%) of those businesses surveyed say that their view on the importance of international trade has increased in a post-Covid world, and that 40% expect to see import trade increase.

“What is particularly encouraging is that 45% of businesses surveyed expect international trade to return within 12 months, suggesting the much hoped for v-shaped recovery.”

In November and December 2019, Kreston surveyed 1,109 small and medium-sized businesses for their views on the reputation of the UK internationally and barriers to international trade as the UK looked to officially depart the European Union.

That survey found 52% of businesses believed the UK’s reputation on the international business stage had improved in the last 3 years, with 70% of businesses saying that it is the skills and expertise of entrepreneurs and businesses that drives our reputation. 79% of businesses surveyed in late 2019 believe that it is the actions of politicians and policy that threaten our international reputation.

Liza Robbins, CEO of Kreston International adds: “The first survey was due to be published in March this year but was delayed because of Covid-19. Yet as the UK looks to agree a trading agreement with the EU, its findings are still important and relevant.

“Our research found that the biggest concerns for businesses trading internationally are tax, VAT and duties (23%), currency fluctuations (20%), and tariffs and trade barriers (19%). Red tape (18%), the cost of international trade (18%), logistics (17%), and getting paid (14%) are all very real barriers to international growth. As we look to redefine our position on the world stage these remain live issues.

“We asked businesses what help they would most value when trading internationally, and, reflecting the complexity of international growth, there is no one single measure that would help more than others.
“Businesses told us that free trade deals (32%) would be the most helpful but would also want to see tax breaks (26%), financial incentives (25%), partnering opportunities (25%), less red tape (23%) and help in identifying customers (21%). A package of support is quite clearly required to help British SMEs take on the world.”

Businesses looking to trade internationally turn to many different sources of information for advice including professional or trade body (41%), Department for International Trade (39%), accountants or financial advisers (32%) and local chambers of commerce (31%).

Andrew Griggs adds: “Brexit has changed the face of international trade for UK businesses, and that will bring both challenges and opportunities. We are encouraged by the outward face of SMEs, but government, professional and trade bodies, and their advisers, all need to play a greater role in helping secure the long-term international future of British business.”

 

July 2, 2020

Trend of increased global use of digital payment technology to be accelerated

The Covid-19 pandemic will accelerate a worldwide trend towards contactless payments, according to a new report from the Emerging Payments Association EU (EPA EU), which was commissioned by Luxembourg for Finance (LFF).

While the shift to digital payments is not a new trend – over recent years investment in payments related fintech has been double that of other technology investments across financial services – the pandemic will accelerate the pace of change in the structure of the industry. It is pushing what were once powerful disruptors, such as credit and debit cards, to become the disrupted, as digital wallets gain favour, particularly with younger age groups.

This sped-up evolutionary process is not without its challenges. EPA EU and LFF’s report argues that global providers must keep customers’ personal data safe while still ensuring cross border interoperability.

Some of the report’s key takeaways from a review of different global markets include:

  • The European picture is fragmented. debit cards remain the continent’s preferred way to pay across all age groups. EPA argues for the continent to shine in a digital world, local networks and solutions need to be interoperable and frictionless across the EU
  •  In the US, more traditional credit and debit providers are under attack from big technology and nimble digital players. Apple Pay is now accepted in 60% of US retail locations, and one estimate suggests that Trustly, a digital account-to-account payment scheme, saw a US growth rate of approximately 600% in 2019.
  • In Asia, UnionPay has enjoyed a virtual monopoly in the electronic payment systems landscape, with more than six billion cards in issue as of June 2019. The company is now looking further afield to Europe, but local giants Alipay and WeChat are also expanding abroad.

Nicolas Mackel, CEO of Luxembourg for Finance, said: “The switch to digital payments looks set to happen much quicker than the shift to cards did in the past. The method of payment is becoming less important than the platform used, to the extent of becoming invisible. This report highlights the countries that have been early movers and are demonstrating best practice in the payments space.”

Thibault de Barsy, general manager of EPA’s EU office, added: “Despite being covered by the same regulation and having access to similar technologies, European consumers’ use of cashless payments differs drastically from one country to another. Nonetheless, instantaneous execution and openness of choice are the universal ingredients of success.”

The full report is available here: https://www.emergingpayments.eu/whitepaper/the-european-payments-landscape-in-perspective/

July 2, 2020

Sopra Banking Software signs strategic partnership with Tink

  • Sopra Banking Software (SBS), a global leader in digital banking and financing software, announces a strategic channel partnership with Tink, Europe’s leading open banking platform.

    Two European Fintech leaders in digital banking combine their technologies and expertise.

    This partnership will enable SBS’s customers to harness the full value chain of open banking, well beyond PSD2 compliance. By integrating Tink’s technologies, Sopra Banking Platform will offer new value and turn-key cloud native digital banking solutions.

  • Sopra Banking Platform’s capabilities – one of the richest catalogs of retail banking functionalities and business features, such as accounts, savings, lending, payments, channels and compliance. Through its engagement platform (Digital Banking Engagement Platform), Sopra Banking Software designs end-to-end digital banking solutions.

Tink’s technologies – financial data aggregation, payment initiation, data enrichment and personal finance management capabilities. Tink connects to more than 2,500 banks that reach over 250 million bank customers across Europe.

By integrating third-party data and orchestrating internal and external API services, banks will be able to design fully digital, personalized customer experiences.

SBS’s parent company, Sopra Steria, whose capabilities include digital services, consulting and infrastructure, will also support the deployment of its open banking solutions.

Open banking-enabled new digital banking solutions.

Sopra Banking Software’s roadmaps include Tink-enabled innovative use cases, such as multi-banking, customer onboarding, KYC, digital lending, enhanced credit scoring, integrated payments, North-South transfers and personal finance management.

Eric Pasquier, CEO at Sopra Banking Software, explained: “Tomorrow’s financial services will be inter-connected, embedded and often invisible. To differentiate, banks will increasingly need to actively connect with external third parties. Combining Sopra Banking’s unique sets of retail banking solutions with Tink’s open banking technologies will allow our clients to develop unique data-enabled customer experiences.”

Daniel Kjellén, co-founder and CEO of Tink, added: “As Europe’s leading open banking platform, we are proud to enter this strategic channel partnership with a global leader in digital banking like Sopra Banking Software. We look forward to working with Sopra Banking Software and supporting their 1,500 clients in 80 countries with our open banking technology.”

July 2, 2020

Hope Capital records huge June spike in enquiries

Hope Capital has recorded a stronger June performance than for the same month last year, fuelling growing optimism that the market is bouncing back strongly from the coronavirus-inspired freeze.

Although many restrictions remained in place, Hope Capital received a huge 189% leap in enquiries from the previous June’s figures. This includes an increase in enquiries from brokers the firm has not previously worked with. The number of formal loan offers also increased by 20% compared to June 2019.

At the same time, Hope Capital has delivered even faster response times, with application and underwriting three times faster than in the first quarter of 2020. Over the first six months of 2020, the firm has seen a 14% increase in loans accepted by underwriting and a 31% increase in loans accepted by clients.

This strong demand coincides with the introduction of a new range of products, aimed at giving borrowers maximum flexibility and control. Launched at the end of May, the Hope Capital Custom Collection provides borrowers with an array of products and features designed to help them manage cashflow and optimise their day-one loan amount.

Nearly 90% of the new enquiries Hope Capital received in June were for residential property, up from just 50% the previous year. This reflects the strong residential offering of the Custom Collection, with the Hope Mini, Midi and Maxi loans all aimed specifically at residential investors. Nearly half of these were for loans of less than £150,000 – a market specifically catered for by the new Hope Mini product, starting at just £50,000.

While 25% of residential enquiries came from the North-West of England, nearly one-third (31%) of were from borrowers in the South-East of England – the highest proportion for any region – reflecting Hope Capital’s nationwide reach.

In addition to its all-new residential products, the Hope Capital Custom Collection also includes options for a built-in three-month repayment holiday for serviced or part-serviced loans, the ability to choose how much of the loan is serviced or retained, and a discounted rate for the first six months. Borrowers can also choose to reduce the upfront fees they pay, and to use alternative valuation methods where speed is of the essence.

Jonathan Sealey, CEO of Hope Capital, commented: “These figures are evidence that demand for short-term finance is strong, and growing. With lockdown easing, there is a pent-up demand for borrowing as projects that were put on hold in spring are put back in motion.

“The strong demand we have seen also reflects the range of products we have made available to meet borrowers’ diverse needs in the post-lockdown world. Our new Hope Capital Custom Collection gives borrowers all the flexibility they need to cope with the new circumstances in which they find themselves as a result of Covid-19.

“Hope Capital is putting borrowers and brokers in control. Combined with our well-earned reputation for fast, flexible service, this should make Hope Capital their first port of call when looking for short-term finance.”

July 2, 2020

FIBA TV at Home showcases lender partners

FIBA, the specialist finance trade body, has announced the latest series of interviews with their lender partners on FIBA TV recorded during the lockdown. The first of the new series can be found exclusively on the FIBA website from Thursday 2nd July.

After the success of the first two series, which were filmed with a professional videographer, the new series of lender interviews was captured on webcams at the homes of interviewees and FIBA’s Adam Tyler. The goal is to continue providing members with vital information from some of the proactive panel lenders, including their backgrounds, aims and the types of new business they are looking for.

On Thursday, members will be able to access the first of the interviews with Aspen Bridging, closely followed by YBS Commercial’s head of business development, Mike Davies, talking to executive chairman, Adam Tyler, about the Society’s commitment to the commercial and buy-to-let sector along with its plans and aspirations in a post Covid market.

Adam Tyler said, “Obviously, webcam filming through ‘Teams’ is hardly up to Hollywood standards but we still wanted to be able to reach out to our members at this time. Since we launched FIBA TV last year, the interviews with senior lender personnel were enthusiastically received by a wide cross section of our membership before the current Covid epidemic. During the current crisis, we had already successfully attracted over 1000 advisers to attend our webinars in May and June and we felt it was important to provide another way, via FIBA TV, for members to be able to stay in touch with our lender partners and keep up to date.”

Adam added, “So, look out for the launch of FIBA TV Series 3 ‘At Home’ on Thursday, which will start with YBS Commercial and Aspen Bridging and then the interviews with Precise Mortgages, Roma Finance, Landbay, LendInvest and Reward Finance being added over the coming weeks.”

Mike Davies, head of business development at YBS Commercial, commented, “Full marks to FIBA for arranging these interviews during the lockdown. The session with Adam has given us a valuable opportunity to reach FIBA members at a time when direct contact is, understandably, still restricted. It enabled me to put across our proposition and will hopefully give advisers some ideas as to how YBS can assist them and their customers during these challenging times.”

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