B&C went behind lender lines to talk to Claire Gates, Managing Director and Global COO of borro, about the lender's new reinvigorated drive and new growth plans….
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div> B&C went behind lender lines to talk to Claire Gates, Managing Director and Global COO of borro, about the lender’s new reinvigorated drive and new growth plans.
After some internal restructuring, Claire is now actively running the entire UK operation and explained to B&C how the lender had “taken its eye off the ball” in its dealings with traditional intermediaries, but borro is now “back to basics” with a new reinvigorated focus and drive.
Claire said: “We were off the radar in 2013 and took our eye off the ball with traditional intermediaries, as we looked at moving into the online affiliate space. We’re going back to basics and are focussing on a number of verticals to further support intermediaries.”
Back to basics
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Picture: Claire Gates, MD at borro
Claire was headhunted for borro in January 2011 on the operations side, but in June got the role as MD. Explaining why she had made the move, Claire said: “I loved the proposition. The fact that it was very innovative and something for the mass affluent – the middle class – was very appealing.”
When talking about her role, Claire said: “I will be overseeing further expansion into the Broker market, hiring further BDM’s and providing strategic initiative into how we continue our strong progress during Q1 and Q2 of this year.”
borro has been on a big recruitment drive and is boosting its business development team.
Claire said that borro wanted people with a degree of seniority and a proven track record in the business development field. borro has recently hired David Hardy, as a Business Development Director, in the last couple of weeks, and is currently looking to appoint a couple more, with a view to additional hires in Q3 this year.
Claire said: “We will further expand our BDM team with three more hires in the next 2-3 months. We have already recruited a senior BDM ‘David Hardy’ who is a main liaison for business in the midlands and northern territories.”
Claire, who has a team of eight direct managers which report to her, said that the volume of its clients come from its TV and London Underground advertising, which have lifted the brand in the last 12 months to achieve double digit growth.
Commenting on its intermediary partnerships, Claire said, “We’ll be beefing up on the affiliate side and with our advertisements.”
“When a deal doesn’t fit the box, we want them to think of borro.”
“We don’t want people to think of us as the last resort, but the smart choice,” Claire added.
Claire said that its new strategy plan started towards the end of last year with the re-launch of their website.
Loans and Products
Prospective borrowers can make an application online, receive a home visit from one of borro’s expert valuers or even come directly to the lender, where there is a daily walk in centre for valuations.
borro lends up to £1 million or $2 million on a single asset, with an average loan term of 10 months. However, with the recent acquisition of a £67 million funding line from Victory Park Capital, Claire now says the lender can facilitate funding up to £2 million.
Claire stated: “Our successful last round of funding with Victory Park Capital means we are now able to leverage much larger deals quicker than almost any other route of alternative finance. “
The lender’s latest Products Enhancements arm is directed at clients who want to sell their assets. borro’s team works together to get the best price on the market for its client and Claire said: “We negotiate with the auction houses and have the best catalogue presentations.”
borro also facilitates a Sale Advance Loan product which can see a borrower attain a loan for up to 70 per cent of the estimated sale price of the asset. Another innovation at the end of last year saw the launch of the Concierge Service, a home visit and collection service for intermediary clients.
Valuations
When asked about the most unusual assets that borro have valued, Claire said they included a stamp collection, a miniature railway and a Star Wars mask mould. Samantha Lilley, Head of the Valuations, said the most unusual application she has received was for a tank.
borro has also valued high-end assets, such as a Beatles manuscript, an Oscar and Banksy and Damien Hirst works of art.
The valuation department is made up of seven people, including a jewellery valuer, a watch specialist, a picture specialist, consultants and a head of logistics.
The valuation team will also approach other specialists for second opinions as well as going to further consultants and often contacting auction house specialists.
Samantha said: “We have a huge database of specialists. We have 200 in New York and London.” She then added: “As the company develops, we will be growing.”
The valuation team are also more than happy to talk to both the borrower or broker directly about their assets – the more information they can give, the more accurately they can value the asset.
Samantha highlighted one case in which they were asked to sell a client’s Chopard Watch, which was originally valued at £50,000. However, the team managed to sell it for £300,000 because they sourced the right auction and shipped it to the New York market.
Borro do not need to check their clients’ financial history, current spending or debt, because they are only securing the loan on the asset. Samantha said: “Because of the recession, we have found a lot of businessmen and small businesses come and sell their assets.” She added: “People now think slightly outside the box. The whole market is changing.”
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