"We see intermediaries as a critical component of the lending process, particularly when it comes to understanding the specific needs of SMEs."
FR: You head up LHV Bank’s SME lending division. What does your role entail?
As the director of SME lending at LHV Bank, my role revolves around steering the strategic direction and growth of our SME lending services across England, Wales, and Scotland. I lead two teams, one based in Manchester, which I inherited, and the other in London, which I built from scratch. Both teams are made up of highly experienced lending professionals who bring deep local market knowledge and insight.
Together, these teams are the backbone of our operation and are critical to achieving our ambitious growth targets. We are focused on delivering tailored financial solutions to SMEs, whether they’re looking for commercial real estate investment loans or growth funding. My job is to ensure we continue meeting the unique needs of our clients while growing our presence in the UK market.
FR: LHV Bank secured its banking licence in 2023. What’s your proposition for SMEs, and how are you supporting them?
At LHV Bank, we aim to be a leading provider of commercial property investment loans and trading loans for SMEs in the UK. SMEs often face challenges that require nuanced financial solutions, and that’s where we excel.
We offer two core products: commercial term loans, which support businesses with their operational needs and growth ambitions, and commercial investment loans, which are designed for SMEs looking to invest in property. Whether the business is acquiring premises for its own use or as an investment, we provide the capital that can be crucial to long-term growth and stability.
Our proposition isn’t just about offering financial products; it’s about understanding the unique circumstances of each business and providing strategic tools to help them reach their full potential. This, combined with our highly experienced team, allows us to offer a bespoke service that meets the specific needs of SMEs.
FR: What’s your distribution strategy? Are you focusing solely on intermediaries, or do you accept direct business as well?
Our distribution strategy is primarily intermediary-focused, reflecting our strong relationships with brokers and industry bodies. That’s not to say, if an excellent direct business case comes to us directly, we wouldn’t consider it. However, we see intermediaries as a critical component of the lending process, particularly when it comes to understanding the specific needs of SMEs.
We work closely with organisations like the National Association of Commercial Finance Brokers (NACFB), the Financial Intermediary & Broker Association (FIBA), and Pro-Manchester. In fact, our patronage with the NACFB shows a real commitment to the intermediary market and our focus on working with brokers who value our flexibility, reliability, and speed in delivering for their clients.
FR: How’s business been, and do you have any targets or milestones you can share?
Business has been strong. In fact, we have doubled our UK lending portfolio earlier this year, in fact in just over six months, and have now grown from £69 million at the end of 2023 to over £200 million by October 2024. This growth is a testament to the strength of our strategy and the dedication of our teams.
Looking forward, we’ve set ourselves an ambitious target of reaching £300 million in lending by the end of this year, but for us, it’s not just about hitting numbers; it’s about making sure that our growth translates into real value and support for the SME sector.
We’ve also expanded our team over the summer with the appointment of three new lending directors. Lee Albino, George Chipperfield, and Sadiq Patel all bring a wealth of experience to their roles to further strengthen our SME lending capabilities.
FR: You’ve worked with several challenger banks in the past. What sets LHV Bank apart from others in the sector?
While I’ve enjoyed my time at other lenders, LHV Bank stands out for several reasons. First, we’re backed by a profitable international group, which gives us funding stability and financial resources to make long-term commitments to the SME sector. This is especially important in a market where stability can be hard to come by.
Secondly, our advanced lending platform allows us to make swift decisions and handle complex lending cases with ease. We’re not bogged down by legacy systems, which means we can provide bespoke solutions for clients who may have found other lenders too rigid or slow. Our ability to quickly evaluate and approve cases has been a significant advantage in today’s market, where speed is crucial, and that’s something brokers truly appreciate.
Lastly, our focus on flexibility and customisation is key. We understand that no two SMEs are the same, and our ability to tailor our solutions to meet the specific needs of each client is what truly sets us apart. We’re here to support SMEs with the resources they need to grow and thrive, no matter how complex their requirements might be.
FR: Finally, what’s next for LHV Bank’s SME lending division?
The future is incredibly exciting for us. With our ambitious targets and a highly capable team in place to achieve them, we’re focused on refining our processes, expanding our teams, and deepening our relationships with intermediaries to ensure we remain the go-to lender for SMEs.
There’s also a lot of work being done to enhance our lending platform, and I’m confident that these technological advancements will allow us to serve our clients even better. Ultimately, it’s about maintaining the momentum we’ve built and continuing to deliver exceptional service to the SME sector. We’ve only just begun, and there’s much, much more to come from LHV Bank in the future.
