Fast, flexible, creative….but still willing to play the long game

As the first quarter of our new financial year comes to an end, it is good to look back not only on last year but also how the new year is panning out, especially after closing a nice ￡3.5m line today assisting an established business purchase a local company by utilising a range of funds.

Being one of the lucky BD’s in the industry who didn’t have to lean on the government schemes last year, and still being able to have an outstanding year, today was the first time that I have utilised government lending.

Dovetailing a ￡1m RLS term loan in with a combined triple invoice finance facility of an additional ￡2.5m with two interfactor transfers, a three lender deed of priority and having to deal with three sets of solicitors, this was not an easy one to complete.

However, as a team we acted fast, supplied a credit backed offer (back in July) and were flexible with the terms of the deal and proved our ability to move fast. So why the delay in closing the transaction?

Having been a high street bank customer for circa 50 years, the prospect was keen to give his current IF lender a chance to structure the deal and unbeknown to me, there were two horses racing at once. Legal docs signed, take on booked in early August and all systems go…..

Then came the bombshell. “Sorry Glenn, I need to advise you that we are going to go with our bankers as they can provide a more competitive offer, but thank you for your help, it is appreciated.”

Obviously then came the obvious questions that any BD asks,

Why didn’t you tell me?

Are they credit backed?

How have they structured the deal?

Is there anything I can do to change your mind?

Luckily the prospect and I had struck up a good relationship and they were pretty open with me, advising what had occurred and how this was a better deal for his business, which in all honesty it was. But as with a lot of indictive offers, they often don’t come to fruition, and I knew this was too good to be true.

So what do you do next? Play it cool? Review your facility and try to compete? Reduce rates and look desperate? Or just trust in your offer and wait for the other lender to go to credit and not be able to deliver?

Fortunately, I chose the latter, extending my offer to the prospect for a month and advising that I hoped he would speak to me when his bank couldn’t deliver on their proposed terms. 3 weeks later, the call came in and we were back on, all systems go.

It is always tricky trying to lift a prospect away from a lender where they are entrenched, and whilst independent lenders can be lean, nibble, creative and quick to respond, sometimes loyalty and history can weigh heavily in a high street banks favour.

So a great end to a first quarter. Winning a deal that has spanned all 3 months of the quarter and mixing it in with other deals too has set a good footing for another fantastic year as the industry looks to be bouncing back again and becoming “the lender of first resort” and not last.

Big shout out to Callum Bull at PMD Business Finance for the introduction and for also living and breathing the deal every step of the way which is great to see from an introducer. Top work mate.

#PlayTheLongGame #MarathonNotASprint #WorkingCapital #TeamWork