Following the recent launch of Atom Bank (https://www.atombank.co.uk/) White Rose Finance Group have been appointed to a select Broker Panel who can introduce Commercial borrowing requirements to the Bank.
Via the Brokerplan Network all AR’s and Associates will have full access to the innovative Product range offered by Atom who are the UK’s first ‘all digital , on-line only ‘ Bank.
Providing services and client interaction via a revolutionary App which drives it’s Digital Mortgage Service Atom will offer commercial loans with fast decisions ( loans approved within three days and completed within 6 weeks ), with complete transparency and interest rates which are highly competitive with the traditional High Street lenders.
Comments Geoff Wilson – Managing Partner at White Rose Finance / Brokerplan
” We are delighted and excited to be appointed to the Atom Bank Broker Panel and to be able to deliver these innovative Products to the market via the Brokerplan Partner Network. We see their entry in to the Commercial lending environment as an absolute breath of much needed fresh air in the Commercial Finance market ”
The key elements of the commercial lending proposition
- Minimum borrowing £25,001 ; Maximum counter-party limit £3m – on day one our sweet spot will be no more than £1m (this ceiling will increase as our business matures)
- Apart from those sectors which could cause reputational damage, there are no excluded sectors but currently development finance is not being considered.
- All types of Borrowing entity will be considered including SIPP / SSAS facilities.
- Lending is prohibited where the borrower is registered in the following jurisdiction – Isle of Man, BVI, Cayman Islands, Gibraltar, Lichtenstein, Luxembourg or Monaco
- Lending will be considered against the following financial covenants – EBITDA(R) post dividends / drawings / Interest Cover at 200%; EBITDA(R) post dividends / drawings / Debt Service Cover at 160% – Net Rental Income will be calculated on same basis. In respect of calculating NRI we will need to deduct attributable costs where applicable. Additional sensitivities (e.g. reduction % in income / revenues etc) are used in deals of £1m+.We use pay rate rather than an artificial base rate.
- All borrowing is charged against BOE Base Rate
- Atom will consider projection led facilities where relevant experience (minimum 3 years), trading history (minimum 2 years) and suitable stressed calculations have been undertaken. We would suggest such transactions are flagged up to us for early appraisal to gauge appetite.
- Atom will require minimum 2 years financials, MI where year-end accounts are greater than 6 months old, three months bank statements and ALIE statements as a minimum to consider facilities.
- Consent to Credit searches are required on the Atom document, held on the web-site above
- Repayment period – minimum 1 year, maximum 25 years – as dictated by asset class ; Commitment Term – same parameters apply
- Interest Only – maximum 2 years can be considered where plausible rationale can be exhibited
- Lending amount and maximum LTV is based on lower of purchase price or market value.
- Initial LTV’s will be – loan size £0 – £500k – 75% LTV maximum ; loan size £500k – £1m – 60% LTV maximum ; loan size £1m+ – 55% LTV maximum. ( Atom are however considering deals which breach these interim parameters if they are considered acceptable)
- Where a business / trading valuation is appropriate due to linked goodwill and is greater than £400k, then market value can be used. Where valuation is less than £400k then VPV is to be used.
- Current Arrangement Fee – 0.75% of borrowing passed entirely to the Intermediary (we will not charge a fee)
- Dual representation will be considered within following parameters – up to maximum facility £500k, maximum 3 legal entities and maximum 2 properties being purchased. (we are hoping to introduce this in the very near future)
Geoff Wilson – Managing Partner at White Rose Finance / Brokerplan
“We are delighted and excited to be appointed to the Atom Bank Broker Panel and see their entry in to the Commercial lending environment as an absolute breath of much needed fresh air in the Commercial Finance market”