ADVANTAGE ONLINE | JULY 2024 5
Having completed almost 30 years with accountancy firm BDO LLP , in their Business Restructuring Department , I decided that it was time to try something new – after all I am not getting any younger .
My role at BDO meant that I spent much of my time working alongside lenders to help them resolve difficulties with borrowers whilst considering recovery options . Invariably , we were brought in by the bank or lending institution once all attempts to work consensually with their borrower had been exhausted . The type and nature of the security that had been pledged was always of paramount importance and , interestingly , I dealt with a wide variety of assets including shopping centres , care homes , office buildings , retail units and residential development schemes .
Comparing my then role at BDO with my new position as COO of Blue Square Capital , there are many similarities , most notably being that all borrowers will , throughout the term of their loan , be continually exposed to the threat of enforcement and , as a consequence , the prospect of an appointment of a receiver may loom large . In some circumstances , the opportunity for a lender to charge high default rates of interest and additional fees through the “ wrapper ” of a receivership structure can be hard to resist , regardless of how advanced the borrower may be as far as refinancing or selling the assets that are the subject of the security . The borrower could , in those circumstances , become an unsuspecting victim .
That is not to say that many borrowers will , in their desire to transact in property and make a profit , convince themselves that signing a Personal Guarantee is a minor inconvenience ( which will “ never be called upon ”) and that agreeing to the wording within the loan documentation ( whereby higher rates of interest will crystallise as soon as an event of default has occurred ) can be ignored ( as “ that scenario will never happen ”).
Banks and large lending institutions are generally unable to progress a transaction as quickly as bridging businesses due to the time necessary to complete their compliance procedures ( which are often extensive ) and , as such , are unable to offer the borrower community the speed of service that they crave . On occasion , therefore , a borrower can be induced to “ cut corners ” and sign up to a potentially riskier loan whereby the risk / reward dynamics are often stacked heavily against the borrower .
Notwithstanding the above , it is clear from my early experience at Blue Square Capital that there are so many advantages for a borrower to seek out Bridging Finance and to benefit from the ability to secure a tailormade solution suited to the circumstances . In my current role , it is a requirement that each and every loan that passes across my desk is forensically reviewed whilst careful consideration is given to the pedigree of the borrower ; his / her experience and track record and commercial acumen . Only then , once our criteria have been met , will any advance be approved .
At Blue Square Capital , we work in collaboration with our borrowers , as a team . There is no “ us and them ” and hopefully no awkward conversations down the road . In the ( unlikely ) event that a loan cannot be redeemed on time , we will do everything possible to find an appropriate solution that best suits all stakeholders . From my personal perspective , I remain confident that the soft skills that I have acquired during my time with BDO will be of great benefit as we grow the Blue Square business over the next few years .
E : we @ bluesquareccapital . co . uk T : 07768 951984 www . bluesquarecapital . co . uk