After recently announcing a brand new £30 million funding line, B&C spoke to David Kinane, Partner of Paxton Private Finance, about the company and the key challenges in the market right now...
1. First of all David, could you tell us more about Paxton Private Finance and when you first started up?
Paxton Private Finance was established in 2010 as a private principal lender funded by various high net worth individuals and specialising in providing short-term finance. In 2011, the Paxton Secured Income Fund was launched to complement our existing private funding and to provide the opportunity for smaller investors to participate in the short-term finance sector. The fund has now completed its third successful year – providing an annual investor return of 9.80 per cent.
2. With your recent new funding line, how do you see your company doing in the next year?
It is looking like it will be a very good year for Paxton. The new £30 million funding line will allow us to further enhance our position within the bridging finance market. Our lending philosophy will remain the same - we always meet our borrowers personally and will continue to work with them to put together the best funding package possible, by reacting quickly, pricing competitively and delivering a proactive and open service.
3. What do you feel are the main problems in the bridging industry at the moment?
Generally, I believe our industry to be in good shape and improving all the time - business levels are increasing, new lenders are coming on stream and the industry is more competitive and professional than ever before. However, we have identified two areas of frustration within the sector for both borrowers and introducers which are the speed in which transactions are completed and the publishing of unobtainable headline rates. As a true non-status lender, we understand that bridging finance is priced at premium to reflect the need for quick completions, we also respect the cost to borrowers if rates are offered but then not provided – rates are important, delivery is everything!
4. With lots of people talking about bridging qualifications, how do you feel about the idea of a IFS backed bridging qualification?
Education and knowledge is vital in any market, however I feel a compulsory required qualification may not be well received. Bridging represents a relative small part of the business spectrum for most introducers and a qualification may prove to be one hurdle too far.
5. If you could be in any other job, what would it be?
It would have to be a job where I’m making something tangible, probably a carpenter.
6. What has been the highlight of your time at Paxton so far?
Providing funding to borrowers to complete their projects – it is always very satisfying when you make a site visit and see the completed refurbishment or development and knowing that Paxton has enabled the borrower to realise their profit.
7. If you could take three things to a desert island, what would they be?
A helicopter, plenty of fuel and someone to fly me back home.
8. If you could change one thing about the sector, what would you change?
The need for lawyers – this of course is “tongue in cheek”, while there are many good lawyers, there are a number who are not and slow down completions.
9. If you could make up your own law, what would it be and why?
Ban the EU from interfering further in the UK financial services sector.
10. If you were allowed one superpower, what would you choose?
The power to see the future.
By Emma Billingham
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