Putting sustainability into lending – Hope Capital

Ensuring that your business is sustainable has to be in all business practices and from the very beginning.

Some companies have only profit in mind and do whatever it takes to reach that goal. Others, and I like to think that Hope Capital is one, have more than profit as their goal. A business ethos if you like that means not only is the business profitable but that you do the right thing along the way, making it viable for the future.

So it makes sense that when a lender starts out they look at how they are going to conduct business; what steps they will take to make sure that they are lending to the right people, and that those people will be able to pay back their loan. In essence to ensure the strategy is sustainable.

When an exit strategy is a major part of the loan agreement, with penalties an all too real possibility, working together to devise the correct vehicle is paramount for the broker. Sometimes choosing the right lender isn’t just about rate or speed of transaction, but more a willingness to work together for the loan to be feasible.

Flexibility and a hands-on approach are two things that I believe make a big difference, especially with bridging finance. For instance, seeing the projects you are lending on, or visiting towards the end of completion to ensure it is on track, are good practice when it comes to short-term lending. Not every lender has the ability to do this of course, but it is certainly something that could separate one lender from another, or offer the peace of mind to move forward.

You shouldn’t measure success by profit alone, sustainability is key to long-term success, and the longevity of any company. As lenders our practices have to be sustainable.