It’s 2022 and many of us are setting new goals and targets for the future. For those of us in the business of lending, these resolutions are likely to be about developing your portfolio, but capital constraints and confidence can often pose a real challenge to getting started. Rob Hallworth, Sales Manager at Siemens Financial Services, explains how Block Discounting can help you start the year right.
Despite the impact of the Covid pandemic, at SFS we have seen a huge increase in enquiries for our Block Discounting product over the last 18-months. I put this down to a few important factors.
Firstly, a number of new clients have switched to block discounting from other forms of lending, where the existing lender has either restricted their facility due to the impact of Covid, or retreated from the sector altogether because of concerns over the possible long-term impact of Covid on the economy.
Secondly, market liquidity has enabled customers to build up their portfolios meaning a greater appetite for capital.
And finally advances in technology have given customers the ability to build scalable portfolios with relative ease and at a low cost. These products are not only quicker and easier to use but they also provide better oversite of portfolio performance down to the granular details. This type of capability does wonders to instil business confidence and support growth.
At SFS, we have a real positive view of the future within Block Discounting. Having now been in the market for over 15 years we are lucky enough to work with a wonderful range of specialist financiers who have exceptional knowledge of the markets they operate in. This means that we have confidence in their respective abilities to run their businesses. We are proud that, with support from our Block lines, many of our clients grew their portfolios in 2021. This confidence has been critical to increase many limits and provide much-needed headroom to support this growth.
What’s more, in the last 12 months we have increased our Block Discounting customer base by 20%. This is partly because we are also seeing broker and supplier businesses extend their business model by offering an in-house funding solution. So, what are the benefits of this approach?
First off, being able to offer quick funding solutions to clients and not having to rely on or wait for credit response from third party lenders is a huge win. This type of offering strengthens the relationship with the end-customer; it also provides a whole new revenue stream for the broker or supplier, making it a highly valuable proposition.
If these weren’t enough reasons to explore the benefits of Block for your business, it’s worth mentioning that the Government has also backed a number of initiatives – most recently the Recovery Loan Scheme – to facilitate UK businesses’ access to finance as they grow and recover from the disruption of the pandemic. If you’re interested in reading more about how Block can support your participation in these schemes I’d recommend reading some of our customer stories on the topic.
If you are considering expanding your own business through offering an in-house funding solution but find yourself constrained by capital availability, then now is the time to speak to the SFS Block team. We can guide you along this path and demonstrate how Block Discounting represents an ideal funding solution to support the growth of your lending portfolio. Equally, if you are already providing this service to your clients, then a SFS Block facility can support your planned future growth, operating alongside your existing facilities.
Now is a great time to consider starting a block facility. To find out more please reach out here or give us a call on 0161 4468692.
Siemens Financial Services (SFS) is widely recognised as a leading provider of block discounting facilities, having entered the Block market in 2006. SFS boasts an extensive and diverse portfolio of clients.
Rob Hallworth, Block Discounting Sales Manager
I have worked for Siemens since 2015 and been involved in the asset finance and Block Discounting markets for over 25-years. I am responsible for on-boarding new clients and managing the day-to-day facilities for our larger Block Discounting clients. I am proud to see how the Block Discounting product has contributed to the success of our clients’ businesses; often starting out as small asset finance brokerages, some of these clients are now amongst the leading independent finance businesses in the UK.
My interests are many and varied, the common feature being out in the open air, whether it be cycling, walking, or spending quality time with my family.