The enterprise of banking: Why choosing the proper financial institution could make all of the distinction to your property enterprise

In response to the Competitors and Markets Authority, 85% of SMEs financial institution with both Barclays, Lloyds, HSBC, NatWest and Santander. This can be a surprisingly excessive determine given the quite a few ache factors we regularly hear from companies about banking with these establishments: legacy expertise and outdated processes imply making an attempt to get what you want is far more sophisticated than it must be; you’re handled like a brand new buyer on the subject of opening new accounts or making use of for brand new merchandise, even should you’ve been a loyal buyer for a number of years; merchandise are served up like a menu with none contextualisation or personalisation to your corporation; you’re bounced round totally different groups and people; your calls and emails usually go unanswered for days or perhaps weeks; and also you expertise hidden charges and uncompetitive charges.

At OakNorth Financial institution, we all know from our expertise of lending to a whole lot of property companies and SME housebuilders since our launch in September 2015, {that a} specific ache level for them is once they arrange a particular objective automobile (SPV) for a brand new undertaking. A high-street financial institution will make them apply for a brand new account – a course of that sometimes takes months, even when they’ve been an present buyer of that financial institution for many years. Why can’t banks take a extra logical strategy, noting that if a buyer already has an account with them, the required due diligence checks will need to have been performed, and due to this fact work with the enterprise to open a brand new account for the SPV rapidly? This is able to imply the enterprise might get again to progressing their undertaking at once, and the administration crew doesn’t waste helpful time on telephone calls with the financial institution.

One other ache level that’s usually raised from our clients on this sector is round transaction values. At instances, they could attempt to make a big fee for his or her subsequent funding similar to a down fee on a property, however their financial institution will usually block these, citing fraud danger given the scale of the transaction and historical past of transactions on the account. They could even say the enterprise’ director has to return into the department to confirm the fee. Why can’t banks recognise that these sorts of transactions are very regular for the sector, so scale back this friction and work with the enterprise to make sure the fee occurs rapidly?

These are questions our clients have requested us quite a few instances over time, and are why we’re increasing from simply lending, to a holistic banking providing with present accounts, financial savings accounts, playing cards, funds, and many others. We’ve labored with a few of the best-known property companies within the UK – names similar to Galliard, Frogmore, Hayfield Properties, Arora Group, Bruntwood SciTech, and Scarborough Group Worldwide – and wish to assist companies like these profit from their cash, and guarantee their banking is gratifying and rewarding.

Working alongside Founders, CFOs, CEOs, and Administrators of property companies, we’re constructing an providing from the bottom up, that scales with companies and their aspirations, and that addresses their distinctive ache factors similar to these outlined above. We’re assigning every enterprise a devoted OakNorth Enterprise Companion – somebody they will name or electronic mail at any time when they’ve a query. We’ll additionally offer a aggressive fee of three.85% AER on easy-access accounts.

If any of what you’ve learn right this moment resonates, please signal as much as our ready listing through this hyperlink to be a part of our phased Beta launch, and assist us construct a banking proposition that works for property companies like yours.

I’ve by no means had this sort of expertise with any lender in my life – I’ve been so impressed by the velocity and transparency with which OakNorth operates. If the key clearing banks wish to find out about the right way to genuinely do issues otherwise, they need to be OakNorth.” – Surinder Arora, Founder and Chairman of Arora Group

[OakNorth’s] expertise gained from working with a few of the main property builders actually shone by way of throughout the complete lending course of, permitting us time to spend money on areas the place our personal experience and keenness can take advantage of influence.” – Kate Lawlor, CEO of Bruntwood SciTech

We have been impressed with the velocity and transparency with which the [OakNorth] crew works, in addition to their industrial and entrepreneurial strategy.” – Kevin McCabe, Chairman of Scarborough Group Worldwide