#020 - Dont Ignore Your HIgh Street Bank

How to Raise Money Podcast

Welcome to another episode of the How to Raise Money Podcast. In today’s episode, your hosts Ray and Nigel discuss how to raise money from your traditional highstreet bank and must the myth that banks aren’t lending. Ray speaks to the chief executive officer of a national bank and the head of property to gain an insight into highstreet bank lending and reveal the secrets of how to access the bank's money a little easier. Discover how to get the banks on your side by getting to know their property manager, build credibility and confidence and get the banks lending with a relatively low level of interest. Finally, Ray and Nigel discuss why you should get started right away, even if you haven’t yet found the deal you need funding for and always remember collateral, cashflow and character. KEY TAKEAWAYS The Highstreet banks want three things to secure lending Collateral - Unencumbered property as security for the loan. You need to have a stake in the transaction. Cashflow - To service the loan. For businesses, this will be a monthly repayment agreement, however for property businesses you will need to roll up your cashflow towards the end of the loan. Character - The Banks need to know you’re credible and capable of seeing the project through. Banks seek out direct relevant experience to the project, that you’re attempting to fund. This can be leveraged through a JV or business partner who has a certain set of skills. How to become the go-to investor for property funding: Step 1. Go and see your bank and property manager: Let him know who you are and what you’re looking to do. Step 2. Keep in touch: Stay in contact with follow up Friday and send your bank an email to keep them updated. Step 3. Build up your digital footprint with your bank and become a known investor. The biggest challenge is knowing your client, knowing your credibility and subsequently loan to value potential. Banks will grant funding within 24 hours, however, it takes 2-3 months for the bank to get to know you. BEST MOMENTS Since the financial crisis of 2007/8/9 banks and lenders have had a bad reputation. Banks will need to know if you have skin in the game Bring in someone with relevant experience in order to get your project funded. Leverage their experience and market what they’ve done. You want to access money as cheaply as you can. Be the squeaky wheel that gets the oil Bank managers always like to piggyback on the success of investors There’s no such thing as an overnight success, you have to get out there and do it. VALUABLE RESOURCES C.R.E.S.T - Model Angel Investor Events https://www.angelsden.com/en-gb/events/ ABOUT THE HOST Ray McLennan is a keynote public speaker and former corporate solicitor who has many years of experience owning and operating a variety of businesses in the UK and Ireland. Ray is the Regional Manager for Scotland & Ireland for Angels Den, which has over 13,500 high net worth Angel investors that help to find funding for property and SME businesses. Ray also helped to create Property Angels Den (PAD) in Sept 2014, which matches High Net Worth Investors with property proposals of all sizes. PAD now meets regularly and has funded dozens of property projects all over the UK. Nigel trained as an accountant but has for the last 11 years run the family care business. With a 7 figure turn-over and over 100 employees, the role has given Nigel quite a few valuable lessons! Nigel and his wife, have focused more and more on property over the last few years. The latest project is a 20 bed HMO with 12 SA rooms. But in the last few years, Nigel is now helping property professionals understand that social media is a way to increase your customers, get more deals and earn more profit! CONTACT METHOD [e-mail] [e-mail] Howtoraisemoney.co.uk