Online directory Bridgingloandirectory.co.uk is aimed at IFAs, mortgage brokers and lenders that are serious about securing fast and effective solutions for short term finance.

The site offers a comprehensive list of key companies specialising in bridging loans and interim commercial finance for a multitude of purposes – from property development to buying a new house or paying an unexpected tax bill – so that intermediaries can select bespoke solutions for their customers.

Tony Sanchez, founder of the Bridging Loan Directory, part of the Clara Capital group, said: “A mainstream bank may take some months to put together a loan for a borrower, whereas an experienced bridging finance company should be able to advance a loan within a couple of days.

“In the current climate, demand for bridging and commercial finance continues to grow and so the Bridging Loan Directory is keen to offer brokers and intermediaries access to some of the most trusted and reliable providers in the marketplace today.”

Well-known companies featured on the ‘yellow pages style’ directory website include London-based Borro whose introducer programme allows IFAs, mortgage brokers, accountants, solicitors, lawyers, wealth managers and tax advisors to offer short term loans of £1,000 to £1,000,000.  All loans are non-status and secured against jewellery, luxury watches, gold, fine art, antiques, luxury cars, yachts, speedboats and other high value assets.

Approval in Principle (AIP) is provided in minutes and cash is advanced within 24 hours. There are no credit checks or extension, redemption, expiry or penalty fees for clients.

Bridgebank Capital – one of the UK’s leading property finance lenders in the area of Bridging and Short Term property – is another directory entry, specialising in residential and commercial property transactions.

Laurence Goodman, MD at Bridgebank Capital, of Manchester, said: “We provide property funding when it is needed the most and this can often be arranged in just seven working days.

“The Bridging Loan Directory is the who’s who of the finance world because it brings together the industry’s most notable companies in one place – making life easier for advisers and intermediaries.”

Mr Sanchez added: “Bridgers and commercial financers are fulfilling a real need in today’s economic environment, where appetite to lend amongst the mainstream community is still low.

“While a bridging loan is advanced to a borrower in a much shorter time-frame than a traditional bank loan, most bridging finance companies will still carry out the same level of checks on the transaction as a bank, including obtaining an independent valuation on the property, and conducting due diligence on the borrower’s circumstances.

“Bridgingloandirectory.co.uk is a quick and simple tool to assist providers in finding the right financial products for their clients – with instant decisions and direct access to funds.”

Contributed by Tony Sanchez – Director, Clara Capital

“Whilst there is now mounting criticism regarding the lack of bank lending, banks have also previously been criticised for irresponsible lending. It is essential that banks and funders ensure that responsible frameworks are in place for the benefit of the whole economy. Whilst economic figures have shown growth, the reality is that day-to-day trading remains tough. Therefore, looking at funding solutions which allow greater levels of flexibility and growth in line with turnover is an excellent way of ensuring funding is available when any opportunities arise.

“Taking all of this into account, I think we will start to see an increase in the use of alternative forms of funding, such as invoice finance, where providers have the scope to look beyond rigid financial criteria. This would also allow them to consider the wider picture of a business’ health and suitability for the many tailored solutions available to assist the UK SME.”

Evette Orams - MD, Hilton Baird

Contributed by Hilton Baird

Chief Executive Adam Tyler explained: “There are different expos which cover different aspects of the commercial finance industry, but none which get representatives from all the sectors under one roof. This is an ideal opportunity for commercial brokers to get to meet with lenders and funders who are still active in the market and still looking to work with brokers.”

The event has grown from the extremely successful ‘Meet the Patrons’ networking days that the Association has held over the last three years. These were informal ‘expo’ with the emphasis very much on meeting and talking. It’s hoped that this same ethos will carry through to this larger event.

“We’re hoping that underwriters will be available to discuss individual cases. I am especially delighted that only two weeks after we launched to our Patrons, we have 18 exhibitors signed up to attend. We hope to attract around 500 delegates for the day and anyone who works within the commercial finance industry would be more than welcome to come along.

“The negative headlines have outweighed the good for some time now – but we wanted to do something to prove that the broker market was still alive and there are still lenders who support brokers – even in these tough times. The market has been tough for the last couple of years, so this is really something which we hope will help to kick start confidence and instill more of a feel good factor than we’ve had of late.”

The National Association of Commercial Finance Brokers (NACFB) was established in 1992 in response to the growing incidence of fraud. The NACFB is the national trade body for brokers who arrange finance for businesses. NACFB members work across the whole commercial finance sector and operate in areas such as commercial mortgages, leasing and asset finance and vehicle finance.

The NACFB works to encourage best practice in a largely unregulated sector of the market. These standards are published within an industry recognised Code of Practice and have been adopted by an increasing number of commercial finance, lease and motor vehicle finance brokers.

To find out more and register go to: http://www.commercialfinanceexpo.co.uk/

Having steered a path through what is undoubtedly the worst global recession in living memory, Leumi ABL is pleased to look back on 2009 and report continuing growth: discounted turnover has almost doubled and both client numbers and funds-in-use have increased.

As clients seek to maximise available funding, the market appetite for structured asset-based lending facilities continues to grow.  Stock, plant and machinery are featuring in increasing numbers of deals alongside invoice finance as clients see this as a more flexible way to fund growth plans.  Now that many banks are reluctant to increase, and in some cases, continue overdraft facilities Leumi ABL has seen an increase in deal flow opportunities and this looks set to carry on.

Notable deal successes during 2009 include the backing of Walstead Investments, with its acquisition of Southernprint in July when Leumi ABL provided a £4 million facility in financial support.  Another significant print sector deal came in October with a £25 million working capital facility to a major UK printing group.

Supporting niche manufacturing businesses, Leumi ABL provided a £2.75 million confidential invoice discounting facility and a £200,000 stock line to two of Domes of Silence Group’s subsidiaries: Aluminium Shapes and Windmill Extrusions.  In a deal completed in November, Leumi ABL and its parent, Bank Leumi (UK) Plc, together provided a range of acquisition and working capital facilities to Polestar Foods to support their acquisition of the non-branded frozen desserts business of HJ Heinz Frozen & Chilled Foods.

Finance providers who can demonstrate trust, agility and flexibility are making a real impact, and have the potential to build a greater presence in the market as opposed to their position pre-crunch.  Many banks are moving into what they perceive as the higher value market, particularly with invoice finance where there has been a degree of consolidation.  Leumi ABL is exploiting this opportunity with the recent launch of Leumi Invoice Finance, tailored to the needs of smaller businesses.  The combined facilities of Leumi ABL, Leumi Invoice Finance and Bank Leumi (UK) now mean that clients can be supported with funding solutions at all stages of their business life cycle.

With the mood in the market more upbeat than at this time last year, we are funding new fledgling companies out of the recession and seeing many successful businesses which have been hampered by their bank’s reluctance to support them through tough times.  Real recovery may be slow to emerge, but we are seeing many good businesses across the UK that are well placed to thrive.

Due to the challenges of the past year, clients and their introducers are now looking for more certainty with any deal.  There is very little speculation in the market at present and this is likely to remain for a considerable time.  Introducers are looking for funding providers they can truly work with and who are serious about doing business.

As we enter 2010, Leumi ABL has a full pipeline of transactional work and much to build on as the economy begins to emerge from recession.

Article contributed by Phil Woodward, Managing Director, Leumi ABL

Email: pwoodward@leumiabl.co.uk
Tel: 01273 716202
Mob: 07900 802774
Website: www.leumiabl.co.uk

Close Brothers Corporate Finance Holdings Ltd (www.cbcf.com) offers independent corporate finance advice in: Mergers and Acquisitions, Restructuring, Debt Advisory, Financial Sponsors Coverage, Pensions Advisory and IPO Advisory. Headquartered in London, it employs over 200 professionals across offices in Manchester, Paris, Lyon, Madrid, Barcelona, Frankfurt and Zurich.

Close Brothers Corporate Finance, one of Europe’s leading advisers with operations in the UK, France, Spain, Germany and Switzerland, will be a stand alone business working in alliance with Daiwa SMBC’s other international corporate finance operations and will continue to provide independent corporate finance advice. Close Brothers Corporate Finance will continue to trade under its existing name for up to twelve months. 

Close Brothers Corporate Finance will bring scale and authority to Daiwa SMBC’s international corporate finance advisory business, providing it with access and insight into European markets. The acquisition is in line with Daiwa SMBC Europe’s commitment to grow its presence across its four divisions (Investment Banking, Equity, Fixed Income and Derivatives) and to provide clients with market leading services.

Close Brothers Corporate Finance will benefit from access to a global network of relationships in Daiwa SMBC’s existing markets. This includes Japan, Asia (China, Hong Kong, Singapore, India and other countries), Russia, Bahrain, Dubai and other Gulf territories as well as into the US through Daiwa SMBC’s alliance partner, Sagent Advisors. Close Brothers Corporate Finance’s extensive presence across Europe, in conjunction with Daiwa SMBC’s established operations in Japan, Asia and the US, will facilitate cross-border deals.

Commenting on the acquisition, Mr. Eishu Kosuge, Chairman and Chief Executive Officer of Daiwa SMBC Europe, said: 

“This is an important acquisition for the firm and a significant day in our forty-five year European history. Acquiring Close Brothers Corporate Finance provides the firm with a stand alone European corporate finance advisory business thereby achieving one of our current strategic goals. Close Brothers Corporate Finance will also increase the firm’s locally originated European business and revenues as well as serving to diversify our earning streams which, to date, have largely been commission driven. I very much look forward to working with our new colleagues.”

Stephen Aulsebrook will remain Chief Executive of Close Brothers Corporate Finance, reporting to Mr. Ikuo Mori who becomes Chairman of Close Brothers Corporate Finance on completion of the deal. Mr. Mori was previously Senior Managing Director and head of International Operations at Daiwa SMBC and Director of Daiwa Securities Group Inc.

Mr. Mori, Chairman Designate of Close Brothers Corporate Finance, commented:

“I am delighted to accept the position of Chairman and look forward to working closely with Stephen. He and his team have built a successful and highly regarded European corporate finance advisory house and this acquisition positions us well to benefit from the increased cross border deal flow we expect to see between Europe, Japan and Asia.”

Stephen Aulsebrook, Chief Executive of Close Brothers Corporate Finance, said:

“Close Brothers Corporate Finance is experiencing a period of significant growth across Europe as a result of our proven expertise in handling complex situations in debt restructuring and M&A.  I am delighted that Daiwa SMBC Europe recognises the value of Close Brothers Corporate Finance and has clear plans to invest in the continued expansion of the business across Europe, as well as maintaining our independent advisory business model.”

For more information please contact:

Close Brothers Corporate Finance – Justin Clark  +44(0) 20 7655 3784

Daiwa Securities SMBC Europe Limited – Paul Lyon  +44(0) 20 7597 8109 

Citigate Dewe Rogerson
Grant Ringshaw     +44 (0) 20 7282 2851
Alistair Kellie         +44 (0) 20 7282 2850
Georgiana Varey   +44 (0) 20 7282 2806

Daiwa Securities SMBC Europe Limited (www.Daiwasmbc.co.uk) is the European subsidiary of Daiwa Securities SMBC Co. Ltd. The firm can trace its origins back to 1964 when Daiwa Securities opened its first representative office in London. It has branch offices in Paris, Frankfurt, Geneva, Milan, Bahrain and Dubai and a representative office in Moscow, operating across fours divisions – Equity, Fixed Income, Investment Banking and Derivatives.

Daiwa Securities SMBC Co. Ltd. is the Tokyo-based parent of Daiwa Securities SMBC Europe Limited. It provides brokerage and investment banking services, including M&A advisory services, targeting domestic and overseas institutions for their optimum asset management. It was formed in 1999 through a strategic joint venture between Daiwa Securities Group Inc. (60% owned) and Sumitomo Mitsui Financial Group (SMFG), Inc. (40% owned). The major strength of the firm is this unique business model, being the only dedicated wholesale securities company in Japan formed through a joint venture between a major securities company and a megabank. Daiwa Securities SMBC Co. Ltd. is able to develop its business by drawing on the broad customer bases of both Daiwa Securities Group and SMFG.

Sagent Advisors Inc. (www.sagentadvisors.com) is an independent, privately owned investment bank that provides its clients with financial advisory services and strategic alternative capital markets solutions. The firm serves a broad client base through its offices in New York, Chicago, Charlotte and San Francisco.  Sagent Advisors has no lending, trading, research or other structural conflicts – acting only as a trusted advisor to its clients.  Daiwa Securities Group Inc. holds approximately a 20% equity stake in the firm.

Companies looking to mitigate future risk or even gain a competitive advantage are looking for funding packages which improve cash flow.

In this climate Asset Based Lending (ABL), which includes factoring and invoice discounting, has come to the fore due to the flexibility it offers businesses of all sizes, from SMEs to multinationals.

UNLOCKING EXISTING VALUE

By drawing on existing assets such as a firm’s sales ledger, plant, property or stock, ABL is an effective way to quickly inject funds into a business in order to provide rapid access to working capital.

It focuses the business on its working capital, ensuring it addresses issues such as reducing debtor days and maximising stock turn.

Effectively managing cashflow in this way empowers a firm to be fleet of foot. It allows management to enter new agreements safe in the knowledge that ABL will boost funds immediately and give them the breathing space to confidently move forward.

A significant benefit is that facilities are regularly reviewed and can be quickly scaled up to meet a firm’s exact requirements, enabling them to move quickly to tackle challenges or seize new opportunities.

The best ABL lenders adopt a relationship-led approach, using their experience to guide management and tailor facilities according to the individual business’ assets, trading history, current requirements and future strategy.

It’s this flexibility which has seen ABL move steadily into the mainstream finance arena over a number of years and the current economic climate has accelerated this trend.

Figures from the Asset Based Finance Association (ABFA) show that the total value of ABL advances in the UK for the four months to the end of September 2008 totalled £17.6 billion, a 15 per cent rise compared with the same period in the previous year.

PROTECTING WHAT’S YOURS

As a result of increasing concern about customer insolvency and the huge negative impact it can have on a business, an increasing number of companies are also including debtor insurance policies in their package of ABL facilities.

These agreements take the legwork out of spotting potential credit risk problems before they lead to a bad debt which also frees up management time to focus on running their business.

Crucially, they ensure firms receive payment of outstanding invoices should a customer become insolvent and protect against the full impact of a bad debt on cash flow.

DOING DEALS

Many businesses struggle to fund sizable deals through cash reserves alone and for those not wishing to take on an interest-generating loan, or release equity to a third party, ABL is an ideal solution.

It allows management to finance an acquisition by unlocking often considerable ‘hidden’ value in a firm’s existing assets.

It has proven particularly well suited to companies that have healthy balance sheets with strong sales ledgers and significant physical assets.

By leveraging value from across the asset base, ABL can provide rapid access to large scale funding, enabling management to move quickly when they spot a potential opportunity.

Providers will also work closely with a business to structure the optimum set of facilities for the deal and ABL’s flexibility allows funds to be easily ramped up, should the enlarged company require additional headroom post-transaction.

As a result, ABL has successfully established itself as an integral part of the funding landscape for buyouts, acquisitions and refinancings of all sizes and across all sectors.

WHAT TO LOOK OUT FOR

Whilst awareness of ABL and its benefits are growing, service levels can vary so there are a few key factors to consider when selecting a lender.

The best ABL lenders will not have fixed limits on the percentage of the sales ledger they advance against or limit facilities if the majority of orders come from one customer.

This is particularly important for businesses with narrow customer bases and therefore a concentration of the sales ledger.

Quality ABL providers will assess an individual business’ trading history and make a lending decision based on the confidence they have in its strategy and management’s ability to drive growth.

These are also the funders most likely to ‘stretch’ their facilities to suit the business rather than withhold funds and potentially leave it dangerously short of cash.

In a challenging economic environment, the ability to closely manage and control capital is a necessity and ABL is a proven tool to ensuring cash flows during these testing times.

Contributed by Lloyds TSB Commercial Finance:-

ABOUT LLOYDS TSB COMMERCIAL FINANCE

Since it was established 25 years ago, Lloyds TSB Commercial Finance has maintained its market-leading position and pioneered a full ABL approach. This enables clients to draw on a diverse set of assets in order to access a tailored lending solution.

Year on year we’ve increased our client advances and we’re expecting this to continue going forward despite the tough economic conditions.

We’ve also grown our international footprint by opening seven offices across Europe in the past few years in order to support complex, cross-border deals involving multinational corporates.

Website: www.ltsbcf.co.uk