DFT sat down with Lending Director Scott Marshall to discuss all things Roma Finance and its string of high profile completions in 2015.
     
1. What was your past experience before launching Roma Finance?

I have worked in financial services for the past 15 years.  I have worked in Corporate Finance at Andersen in Manchester and I worked at Lancashire Mortgage Corporation for 6 years becoming Credit & Risk Director.  

2.       Did you always want to work in finance?

No. My degree was in Manufacturing Engineering with Spanish but after spending 3 years in industry, I quickly realised an understanding of finance was critical to being a success in business, so I decided to retrain as an accountant.  I was offered a position in Corporate Finance rather than audit at Andersens so my hopes of becoming an accountant never materialised

3. What exciting plans does Roma Finance have in 2015?

This year we intend to develop our service offering by recruiting new Lending Managers and increasing our brand profile through attending events and contributing to industry discussions through the media and organisations like the ASTL which we joined recently.

Also, the property market looks like it will be strong for a number of years yet and there will be continued demand for rental property, for a lender such as ourselves that means property investors and developers will be looking for finance to renovate property or change its use to buy to let. The upcoming changes to pension regulation in April, may also boost this type of lending and we are well placed to rake advantage of such opportunities.

We’re constantly reviewing the market to see what trends are out there in terms of property lending, renovation and the rental sector.

4.       How has Roma Finance grown since establishing in 2008?

Initially we only provided sub-contract underwriting services for a number of other bridging lenders including Drawbridge (now Dragonfly).  Our first loan wasn’t until December 2010 (a 5 year secured loan) and our first bridging loan was completed in April 2011.  

We’ve grown tremendously since then, but obviously you have to look at the economic situation back in 2008. All lenders, both High Street and specialist, were caught in the turmoil of the credit crunch and this put a severe pressure on market liquidity. So you could say not a great time to start a lending business! But actually it was fine, as we had a steady funding line and demand from brokers and their clients was still high, just that a lot of their traditional routes to property finance were closed to them.

We fulfilled a niche role and grew the business steadily through the first few years. As the market has recovered in the last eighteen months or so, our business model, underwriting and processes had already evolved to take in to account the real growth we are now experiencing; both for our business and the bridging and property sectors generally.  

5.       What was the main reason for launching a charter and how has it helped introduce business since its implementation?

As we improved our brand and enhanced our service proposition to introducers, it seemed a logical step to document our business ethos. Having worked closely with many brokers over the years, we’ve provided most types of property bridging finance and solved many issues that have arisen along the way whilst delivering a high level of service.

To assist our partners further we felt it would be useful to set out our way of working to give extra clarity and confidence to our regular introducers as well as new brokers and their clients. Having built up terrific working relationships with many firms in the bridging sector, defining our service in a Charter is a great way to acknowledge the importance of these relationships and to clearly state how seriously we strive to achieve business goals.

6.       If you could have one superpower, what would it be and why?

It would be great to be able to fly.  When you’re running a business it’s important to spend some time away from day to day transactions on the ground, so the ability to fly would allow me take a view of the business from a more strategic level, more often. Also it would come in handy to get from one broker meeting or client site visit to the next!  

7.       What is more important, repeat business or new business? Why?

As with any business it’s vital to do both, and give the same excellent service to both too!  When you work with a new broker or client, it’s important to do a good job and progress the case quickly and professionally. If there are further opportunities to work together then your past performance could get you the next case, and so on. In an ever changing and growing market, like bridging finance is at the moment, then it’s also important to meet new potential business partners as they will fuel your future growth.

Working with existing clients and brokers means that the way they work is already a known quantity so can make it a little more streamline. But at Roma Finance we give the same expertise to every case.

8.       What is more important in bridging – rate or service? Why?

You could also say that in many cases it’s about speed as much as it is about rate and service. Often as bridging lenders we are asked to act very fast, often in a matter of days or even hours! So having the experience to quickly grasp the important factors in the case are key.

There’s been a lot of discussion in the industry about whether the headline rates advertised are the rates clients end up paying. And I can see why. After all, it’s not just about rate, other factors such as service, security, the exit route and client profile come in to play. It’s about underwriting each case individually to assess its viability.


9. What one thing would you change about the bridging industry?

That’s a good question.  The sector has come a long way since I first started working in it nearly 12 years ago.  There are now some excellent companies operating in the space, including brokers, lenders, media businesses, valuers and solicitors, and there are some very talented & charismatic individuals.  It is a great industry to work in and you never stop learn new things.  Would I change anything?  No, it’s a great industry to work in.

10.   To what extent does the bridging market need to consolidate?

I don’t think it will need to consolidate as such, the market is growing and clients want to do more things with finance to develop property and land. Lenders are responding and bridging is now used for many more purposes than ever before, so I think we’ll see steady growth across the board for the medium term, particularly as the economic outlook is good and there is still a high demand for rental property.