I attended a meeting at the offices of BNP Paribas Personal Finance last week at the invitation of Trustmark. The reason for the event was to introduce TrustMark scheme operators (PCA operates a scheme on behalf of members) to two financing options that have been brokered.
These were created primarily to assist private homeowners raise funds for retrofit insulation and other energy saving measures, but it would appear that they (Trustmark) are prepared to extend the offering to some other activities that are covered by TrustMark operations.
There are two Trustmark finance options available
The first relies on a company administering the job and issuing contracts though the TrustMark Business Portal. This then allows the contractor to offer a loan for work without falling foul of the FCA rules. In this model the bank pays the contractor on completion, so there should be no chance of the client failing to settle the bill.
The second route to loans is slightly more traditional and requires the contractor to have a relationship with a loan brokerage. In this model, a company called Phoenix Financial Consultants would charge the contractor £120 a year to become an “introducer”. This then allows the contractor to let consumers know that a loan for the works they propose may be available.
So far the list of activities that the finance companies are prepared to offer loans on is limited and I must be honest and say that I didn’t think that the proposals were particularly attractive for PCA members. That said, financing a basement conversion or the adoption of flood resilience measures may have some attraction.
What is your view on the Trustmark finance option?
In order to get TrustMark, BNP Paribas and Phoenix on board with our sort of work, I will have to go to them with a proposal. This could be a tremendous waste of time and effort if what they are offering is irrelevant to members and your clients, so, before approaches are made and I start working on this I would like to hear your views.
Please drop me an email (email@example.com), phone the office (01480 400000) or come and see me at the regional meetings. I can give you a bit more information and would very much like to hear where you think access to loans might be useful and how you think it might help your clients and your businesses.
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