An estate agent has secured a six-figure funding line to help it grow its lettings business.
The bank, Lloyds, is now using it as a case study to demonstrate its declared willingness to lend to small and medium-sized businesses – and possibly signalling its intentions to support estate and letting agencies, including start-ups.
At the start of the year, Lloyds published a charter, promising to increase its lending to SMEs, as part of its participation in the Funding for Lending scheme.
The scheme has been under fire because although it has resulted in more mortgage lending, there has been scant evidence of more lending to businesses.
Now Lloyds Bank Commercial Banking has revealed that it has agreed a commercial loan and overdraft facility for McCarthy Holden.
The business, which has branches on the Hampshire, Surrey and Berkshire borders, will use the funds for acquisition purposes – it is looking to buy a lettings business – to expand its headcount and invest in new professional film equipment for use by its in-house video production team. The firm produces high-definition films of its properties, which it hosts online.
The group, whose offices include Fleet, Odiham and Hartley Wintney, specialises in mid- to top-end properties in these affluent areas, but wants to reduce its reliance on sales by growing lettings revenues from 35% to 50% of turnover – currently £1.4m.
Chairman and managing director John Holden said: “The strategy is to maintain our current dominant position in the residential sales sector but to focus on building the lettings aspect of the business to balance the sales side.
“We have seen an uplift in sales, but the market is very seasonal, so the aim is to create an even and steady income stream and smooth out cash flow into the business.”
The firm, which has 35 employees, is a new customer to Lloyds Bank Commercial Banking.
The picture shows David Collins, of Lloyds Bank Commercial Banking, on the left, with John Holden, outside the Odiham office
http://www.lloydsbankbusiness.com
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Comments
Did you say al, of 25 agents do this?! How have I missed it?
Please james can you stop. Your posting the same detail on every comment and just amending the "now back the question" section. School boy!!
It does make me chuckle when agents borrow vast sums of money to grow their agencies, whereas my clients do it organically for a fraction of the price. You see, acquisition isnt the only route to grow lettings agencies.
Every client of mine says, if you can just get me in front of the landlord, i will get them every time. Its just there is simply too many agents and every landlord thinks we are all the same.
If anyone is needing a different way to attract sellers and landlords to their estate agency and lettings agency , you might be interested in what we do?
You see, I work freelance for around 25 agents in the South and London (+ a couple in the North). We are capacity at the moment, so cant take on any new clients until January/Feb time when we take on a new person.
However, our service allows our client letting agents to choose a housing estate or apartment block that THEY want more rental business in. Then we send all the landlords, who own a rental property in that estate or block a property report about the state of the rental and sales market in their block/ estate (and only that block or estate) .. deadly interesting.. a different one each month ( all branded up in our clients logo). It gets inside the landlords head and you gain their interest and trust. We send it to where the landlord really lives (not the rental property). Once you have their trust, you invite them into your offices.. takes a few months but works. very professional and subtle
The service initially attracts landlords to bring their properties to the agents I work for, but the it also attracts sellers as well for free valuations if you do sales as you send the same report to the home owners
I can assure you this 100% bonafida, and it uses techniques many agents have lost over the last 25 years
www.landlordfinders.com
Now, back to the question.. good luck with your acquisitions