Novellus Finance: A Personalised Approach to Alternative Lending in the UK and Ireland

Novellus operates in the UK and Ireland, offering alternative funding solutions to that of the mainstream banks, secured primarily by real estate. We take a personalised approach to underwriting, assessing all loan inquiries on a case-by-case basis.  As a 100% privately funded lender, we possess a distinct competitive advantage, maintaining full operational autonomy. This allows us to act swiftly and efficiently, setting us apart from other alternative lenders who are often constrained by external funding criteria. 

Underwriting – Key Considerations:  

  1. Pricing, Leverage, and Risk 

Novellus adopts a flexible approach to pricing and leverage and our decisions are influenced by several factors including the (i) exit strategy, (ii) level of borrower capital/equity being introduced, (iii) asset type, (iv) location, and (v) borrower’s prior experience.  

Our underwriting team will always perform a comprehensive analysis to determine the maximum leverage and appropriate price point. Whilst we do not follow a fixed pricing matrix, our primary focus remains on sensible lending.   From the outset, we will work closely with both the broker and the borrower to fully understand the background and nuances of each deal.  Furthermore, the level of borrower capital in the deal and/or supporting assets to be used as security helps determine our comfort in assisting a potential borrower. To assess this, we will always require proof of funds (both available and spent to date), the borrower’s history and background, and details of the proposed security assets. 

If the borrower’s intended exit is a sale, we will carefully assess the asset’s value and liquidity. In the case of a refinance exit, such as after the completion of a development, we will evaluate whether the build will be completed on time and if we are confident the borrower will have sufficient time to secure a refinancing. Close collaboration with our appointed QS is essential in these cases, and we will also assess other lenders’ appetite for leverage to determine the feasibility of any refinance. 

  1. Collaborative, Thorough and Detailed Underwriting 

At Novellus, underwriting is a collaborative team effort. A dedicated case handler from our UK or Irish teams oversees the process, with other team members involved throughout the assessment stages. All aspects of KYC and AML compliance are strictly adhered to, with every check reviewed and signed off by our designated AML Reporting Officer.   Our Finance Team plays a crucial role by developing repayment profiles and financial scenarios, calculating key ratios, and helping evaluate the future risk profile of the loan, whether it is a short-term “Bridge” or a longer “Term” product.   

Valuation is, of course, a key component of the underwriting process. In addition to the numerical valuation, we assess the asset’s liquidity to understand the loan’s risk profile. This ensures we are comfortable with the LTV ratio and confident that the asset can be refinanced or sold during the loan term. 

Our underwriting objective is to conduct a thorough and detailed appraisal while making the process as seamless and efficient as possible for our brokers and borrowers. 

  1. Building Relationships: Client Interviews and Site Visits 

As part of our underwriting process, we always conduct a client interview and, when possible, schedule a site visit with our borrowers. Visiting the security property allows us to better understand its location, condition, and overall potential. While reviewing performance data on a spreadsheet is valuable, experiencing the property and its surroundings first-hand is equally important. 

The site visit also provides an opportunity to meet with our customers in person, fostering a relationship based on trust. We believe that early and consistent engagement with our borrowers is key to a successful partnership. Establishing this rapport from the start, helps ensure a smooth and efficient process from initial inquiry to completion and often leads to repeat business. 

Novellus’ Commitment to Responsible Lending: 

Our underwriters approach every loan as if they are investing their own money, carefully appraising each enquiry. While focused on growing our business, we will only proceed with loans when the security package is adequate, and both pricing and leverage align with the underlying risk. 

 We remain committed to a thorough, thoughtful, and personalised process, believing that careful assessment and strong relationships are essential for effective, responsible lending. This approach lays the foundation for sustained success for both our customers and our business. 

Novellus Case Studies: 

  1. UK: https://novellusfinance.com/uk/case-studies/ 

 

  1. Ireland: https://novellusfinance.com/ie/case-studies/ 

 

Please get in touch if we can assist you and/or your clients with any secured funding requirements.