In what started last year as more of a speculative study, development specialists Regentsmead began to assess the current financial climate.
The firm’s researchers noticed that a number of enquiries were being put on hold after some clients had decided to contact a high street bank regarding development finance.
Regentsmead reported that, time and time again, its clients will put their projects on hold in the hope that they can get a loan from the bank rather than a specialist provider.
James Bloom, CEO of Regentsmead, explained why this course of action might lead borrowers into difficulties.
He said: “One of the key advantages of using Regentsmead is that we lend our own money, as we have substantial assets. This means that we can give our clients instant decisions and advance funds in days - our current record stands at seven days for a client last December, after he was turned down by the bank as well as three of Regentsmead’s competitors.”
This proved to be the main prompt for Regentsmead to go directly to the banks to see if they could do some reciprocal business. The firm realised that the opportunity was there to convince the banks to make a good recommendation, rather then stringing a client along while they come up with an excuse not to lend.
As many of the institutions are understandably entering the lending market with trepidation at the moment, Regentsmead made the initial approach to meet with the appropriate directors at the High Street banks.
So far, the firm has had discussions with Metro Bank, HSBC, Bank Leumi, Barclays and HSBC and have further appointments lined up with many more institutions.
James went on to say: “The current illiquid market is actually a time of great opportunity, providing that a lender is self-funded and does not have to reply on any external backers. We offer market-leading service and even the High Street banks have finally recognised this.
“From the banks’ point of view, rather than simply rejecting a client or, worse still, having to string them along while they go through the various layers of credit, they are now able to make a confident referral to the number one development lender in the market and know that they have enhanced their relationships with their clients.”
Regentsmead’s CEO concluded: “Contrary to popular belief, there are bankers in the industry who do think it important to help their clients and not just themselves!”
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