Karl Mallett MD of CFBUK

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2. Karl Mallett MD of CFBUK

3. Agenda • Briefly - What we are • Briefly - How we do it • When we charge fees • When we pay you & how much • Identifying when we can help

4. What we are? • Whole of market commercial finance brokers. • Sourcing finance for clients in the following areas: • Commercial investment property • Owner occupier trading premises • Property development finance • Non regulated bridging • Hard to do BTL, HMO & portfolios

5. What we are? • FCA Permissions for CONC • No FCA permissions for regulated mortgage contracts • No cross selling or cross referring • NACFB members (Main board director for compliance)

6. How we do it – Client Journey • Brochure on round tables • Initial contact - Fast assessment of your enquiry and clear indication of the likely outcome. • Only if we think we can help, will we take the deal on.

7. PERFORMING AS WHOLE OF MARKET BROKERS The commercial sector does not have a ‘Mortgage Brain’ type facility, that ‘works’! So our Table of Terms provides you and your client with the comfort that the market has been searched and the most likely indicative terms have been obtained. The client can then select their preference.

8. Whole of Market Access • CFBUK have access to all commercial lenders operating in the UK including CROWD/P2P funders • If we cant do it, it cant be done

9. CFB Fees – What & When • We do not charge up front fees • If the client decides to move forward with a lender/s from the Table of Terms we charge an admin/application fee of £250. • Once the client accepts an offer of finance we charge our arrangement fee of 1% • Payable on acceptance of facility . • Negotiable for larger loans • Min - £1,495 ( <Loan of £149,500)

10. We pay % 50% • Of arrangement fee of 1% (min £1,495) • Of standard procurement fee from nil – 1% • Paid to Openwork on completed cases only and paid to you by Openwork after network retention %

11. When to call us? • Every time you have a case or an enquiry that you are struggling to find a home for with your current residential lenders • Every time you have a case or an enquiry that sounds impossible to achieve

12. To Consider! • Commercial lenders operating in the residential investment space –LTD v Personal and generally more relaxed criteria. • Portfolio Landlord – criteria changes • If you are struggling to place a BTL proposal – Call us

13. Commercial Lenders – BTL 30+ • Brand new properties • Term of ownership • Mixed use – Flat/retail – Flat/offices - Etc • HMO properties • Multi-title properties • One title multi properties • Lack of earned income – Maintain lifestyle • Limited companies, off-shore and trusts. • Non UK resident/domiciled • SIPP/SSAS • Poor credit scores/history – with explanation

14. Other Finance • Asset Finance – anything with wheels or a serial number. • Invoice Finance – discount & factoring • Business cashflow finance • Trade Finance • Stock Finance

15. Additional Earnings • Life Assurance Products • Residential Remortgages • SIPP/SSAS Funding • Commercial General Insurance

16. Case Study • A client & 3 fellow directors wished to purchase a competitor: • £350k goodwill, assets, SAV etc & £300k for freehold factory unit = £650k purchase price • They had only £100k in cash • Own bank rejected deal • First broker had failed to produce an offer of finance • CFB(UK) achieved: • 80% BM of factory £240k • Sale & leaseback of machinery £80k • Invoice discounting £60k • Cash at bank/hand (new business) £50k • Increase to overdraft £20k TOTAL RAISED £450k Shortfall £100k • Introducer raised £25k for each director by remortgaging their homes, who then made director’s loans to the company • Purchase achieved in 8 weeks!

17. Case Study contd ... Fees Earned by Introducer • % of commercial finance fees £4,600 • TA: £300k each for 4 directors £7,200 • 4 residential mortgage commissions £2,700 • Total introducer fees £14,500

18. Call us or email 0800 999 2015 info@cfbuk.com