Team profile: Take 5 with Karl Lanham, Director
What type of businesses are you currently working with?
“I am lucky to work with a wide variety of business and it is one of the aspects of the job I enjoy the most. Currently, I am arranging facilities for businesses in agriculture, engineering, construction, property and professional services. It is particularly rewarding when you are able to add value for clients who appreciate the guidance and advice we provide, perhaps suggesting an option they hadn’t previously considered, but which really fits the bill and achieves a great outcome.”
What types of finance do you generally organise for clients?
“We start every relationship with a blank piece of paper and listen to each client’s requirements carefully before suggesting options. This often includes working in partnership with other professional partners, such as the client’s accountant or bank manager, to ensure the solutions we suggest don’t affect any existing facilities. There can sometimes be an understandable temptation for a customer to take the path of least resistance, and we have seen significant growth in the commercial loan market in recent years. However, we take time to ensure that solving today’s problem doesn’t cause bigger issues further down the line.”
In your view, what makes you different from other business finance advisers?
“I believe what sets us apart is the collaborative approach we take in working with other stakeholders in a client’s business. All too often, the first time an accountant learns about the finance that a business has taken is when they produce year-end accounts. We ensure everyone is aware of what is being arranged, where appropriate, so a client benefits from all their partners pulling in the same direction.”
What has been the most interesting project you’ve worked on in the last 18 months?
“The most interesting cases are the ones that really stretch your knowledge or take you into new areas. I have particularly enjoyed some of the more complex property-based finance I have worked on recently. These cases have included working with multiple stakeholders over a long period to deliver the right solution for the client.”
Are there any projects where you’ve had to restructure an application to achieve approval?
“One case that springs to mind is a client who was trying to secure funding for a Corporation Tax bill. The business was trading very successfully and as result had a large tax bill to settle, but as a growing business needed working capital. As we were brought into the process when the tax was already in arrears, there were limited options available to us. One approach was a short-term commercial loan, as the client only required the money over six months. Because of our experience, we knew that a short-term loan would be significantly more expensive in terms of interest rate for the client. The solution was to take the loan over a longer period and settle, with no penalties, early. This meant the interest rate was roughly a third of the short-term option.”
