Conformity in business is not the path to success.
This is why Go Business Mortgages has actively set out to welcome tomorrow’s tycoons who are struggling with yesterday’s finance system.
If you’ve experienced the red tape and complexity of arranging a business mortgage in the past, it’s time you talked to Go.
Our speciality is fast decision-making, rapid access to funds and competitive rates for start-ups or firms with self-certified accounts or a poor credit. We look beyond the paper trail.
The UK is full of entrepreneurs whose ambitions are being thwarted by traditional lending methods. We have identified five common hurdles, and we’re determined to get clients over them.
These five hurdles are:
Companies being unable to meet traditional rigid criteria;
Lack of certified accounts;
Less than perfect credit histories;
Loan-to-value restrictions, and;
Long lead times for approval.
SME domination
The UK is dominated by small and medium-sized businesses.
This sector accounts for 99.9 per cent of all businesses in the UK, with 99.3 per cent having less than 50 employees. Small-to-medium enterprises (SME) also account for more than half of the entire UK employment market (58.7 per cent) and total UK turnover (51.1 per cent).
More people than ever are setting up independently and government agencies are supporting this growth with investment and initiatives. The missing link has been direct access to critical financial services that can be called upon at short notice.
But not any more.
Accepting risk
Lateral thinking and acceptance of risk is a significant contributing factor to success.
My second mortgage company – TML Financial Solutions – was sold to the Kensington Group in 2002, and after a spell in which I became a commercial property developer and founded Nobok Sports, I moved back into mortgages, this time with a mission to offer something less uniform in the commercial mortgage sector.
It might look like a high-risk strategy. After all, not every potential high flier with a slightly blemished credit record is going to grow into the next big thing in business, but Go’s promise that it will look ‘beyond accounts and credit’ histories is carefully supported.
Rates will range from 1.65 per cent over LIBOR where accounts have been filed with Companies House. For self-cert deals, rates will start significantly higher, reflecting the higher risk. We don’t have principal risk, so we don’t need to look at the balance of the loan book we generate. We spend our time working with customers and lenders to find the best product available.
He believes that intermediaries seeking the best deal for their clients will heave a collective sigh of relief that Go is actively seeking a territory which less confident business mortgage providers would shun.
There’s no doubt that this is a huge gap in the market, which we’re very happy to fill. We will provide advisers with excellent service and products. It’s a package that will prove to be a real winner for clients.
We are 100 per cent committed to streamlining the commercial lending process, to save time for the applicant and, where appropriate, intermediaries, IFAs, accountants, lawyers and surveyors. Whether the end user wants to buy a property or remortgage an existing one, Go can help.
Too much good business is lost when a broker recognises a client’s vision, but cannot find a commercial provider which can see beyond the red tape. It’s a genuine market which has previously not been supported.
Strode-Gibbons' pedigree in the mortgage sector is unquestionable and becoming the leading player for commercial mortgages is something that he relishes - and fully expects, with an experienced team including many previous colleagues from his earlier ventures.
Go has been quick to recognise the value of its intermediaries and is forging a strong bond with them.
Intermediaries can expect substantial commissions in a sector where loans can easily be £500,000 or more and fees much higher than the residential sector.
With Go, commission of up to 1.50 per cent of the loan will be paid within 48 hours of completion for a self-cert, owner occupied mortgage or commercial investment mortgage. Rates range between 1 per cent and 1.50 per cent, depending on the product.
We see our brokers as vital business partners and want to ensure they become as committed to us as we are to them.
We are already seeing the results of this way of working and judging by the stir we’ve created, we’re confident that soon everyone will know the way to Go. mi
