Onside Issue 6 - 33

33

It's all in the detail

Trade Finance

From our original target market of providing
bridging finance for fast moving property
transactions, typically small developers buying at
auction with a small refurbishment requirement
prior to the onward sale or refinance, we have
moved the bridging business into providing
development finance in single loans up to £3
million. These schemes involve anything from
converting offices to residential or 'traditional'
housing developments and require close controls
and regular visits from experienced people who
know what they are doing. To deliver the service
properly we need the correct skills within the
business, which amongst others is epitomised
by the recent recruitment of Sharon Catterall,
an experienced Banker who led the mezzanine
finance activities of Flourish Capital prior to
joining Seneca Bridging as Head of Operations.

In the mainstream debt markets, working capital
lines whether provided via a traditional overdraft
or invoice discounting facility are highly price
sensitive, reflecting the fierce competition for
standard deals. However, within this category of
working capital finance is the little understood
area of Trade Finance which if correctly structured
around the supply chain, provides an efficient
source of capital for the borrower and a
remunerative and relatively secure facility for
the lender. The process is knowledge intensive,
making it an ideal arena for Seneca, which we
have again exploited by recruiting a specialist
team, recently expanded by the hiring of Mark
McGuire who is a leading figure in this market.

Specialist bespoke lending
Next in line for development was our secured
lending product, which includes a discreet niche
of providing block finance lines to relatively small
but experienced lenders in the asset based
lending market (vehicles, plant, and machinery).
We provide the capital which they on-lend to
their customers, in return we have the security
of their balance sheet but also the underlying
loan agreements. Again this is highly specialised
and requires detailed monitoring and controls.
We also deliver tailored fleet vehicle lines and
bespoke property loans through this division,
which for a variety of reasons may require
sophisticated structuring.

Technology will continue to revolutionise the
way in which banks deliver their services and
how businesses interact with them. However,
these massive structural changes will produce
opportunities within niche markets that require
capital but do not suit commoditised delivery. It
is our job at Seneca to spot those opportunities
and determine if we can serve them profitably
with the right people and products. In this
environment standing still is more than ever not
an option, if we did we'd end up like everyone
else - which just isn't Seneca!

Jeff Morton

Tim Murphy
Director, Seneca Property
Director, Seneca Partners

E tim.murphy@senecapartners.co.uk

jeff.morton@senecaproperty.com
T 07900 160 564
www.senecaproperty.com



Table of Contents for the Digital Edition of Onside Issue 6

Contents
Onside Issue 6 - Cover1
Onside Issue 6 - Cover2
Onside Issue 6 - Contents
Onside Issue 6 - 4
Onside Issue 6 - 5
Onside Issue 6 - 6
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