2. This document is confidential and should only be circulated with prior approval from Sancus BMS Group.2 | 13/07/2018
1. Is there a lending crisis?
2. What is a possible solution?
3. Is this solution sustainable?
4. Challenges faced by the banking sector.
5. Challenges faced by Trustees, SMEs, CSPs and entrepreneurs.
6. What changes are happening now?
7. What’s next?
Agenda
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Number of Loans Approved for SMEs (2011 – 2017)
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17
No.ApprovedLoans
No of Loan Facilities Approved (small) No of Loan Facilities Approved (medium)
Source: UK Finance
Small and Medium-sized enterprises identified as those businesses with under ÂŁ25m turnover
Source : UK Finance - loans approved by High Street Banks
* Leasing Life – The Journal for Asset Finance 2/7/18
Is there a lending crisis?
In 2018 84% of areas in the UK saw
SME lending fall, a drop of 5.2%,
ÂŁ9.7bn in a single year.*
4. This document is confidential and should only be circulated with prior approval from Sancus BMS Group.4 | 13/07/2018
Number of Loans approved for Real Estate businesses (2011 – 2017)
0
500
1,000
1,500
2,000
2,500
3,000
Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17
No.ApprovedLoans
No Loan Facilities Approved (small) No of Loan Facilities Approved (medium)
Small and Medium-sized enterprises are identified by banks notionally as those businesses with under ÂŁ25million turnover
Source : UK Finance – Real Estate Professional Services & Support Activities
Source: UK Finance
Is there a lending crisis?
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Peer-to-Peer Business Lending
Source : University of Cambridge Judge Business School – 4th AltFi Industry Report – Dec 17
Total UK Peer-to-Peer
Business Lending 2011 – 2016 (£million)
ÂŁ1,232m
ÂŁ21m
ÂŁ62m
ÂŁ193m
ÂŁ749m
ÂŁ881m
2011 2012 2013 2014 2015 2016
What is a possible solution?
6. This document is confidential and should only be circulated with prior approval from Sancus BMS Group.6 | 13/07/2018
Peer-to-Peer Property Lending
Source : University of Cambridge Judge Business School – 4th AltFi Industry Report – Dec 17
The Future
ÂŁ1,147m
ÂŁ609m
Total UK Peer-to-Peer
Property Lending 2011 – 2016 (£million)
2015 2016
7. This document is confidential and should only be circulated with prior approval from Sancus BMS Group.7 | 13/07/2018
Is this solution sustainable?
8. This document is confidential and should only be circulated with prior approval from Sancus BMS Group.8 | 13/07/2018
Bull or Bear market?? !!
 Bond super bull market is coming to an end;
 Equities dominated by Alphabet (Google) $581bn, Amazon $424bn, Apple $756bn, Microsoft
$417bn;
 Valuations have become stretched on both asset categories;
 Geo-politics causing grave concerns.
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Bull to bear?
http://www.visualcapitalist.com/visualizing-longest-bull-markets-modern-era/
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10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
Percent
Source: Federal Reserve Bank of St. Louis
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US equities
12. This document is confidential and should only be circulated with prior approval from Sancus BMS Group.12 | 13/07/2018
Global Interest Rates (1985-2020)
0
2
4
6
8
10
12
14
1985-01
1987-01
1989-01
1991-01
1993-01
1995-01
1997-01
1999-01
2001-01
2003-01
2005-01
2007-01
2009-01
2011-01
2013-01
2015-01
2017-01
2019-01
2018 – 2020
Forecast
 Interest rates expressed as an annual percentage of the loan outstanding.
1985 1990 1995 2000 2005 2010 2015 2020
Data Source: OECD
Forecasts: Trading Economics
InterestRate
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Challenges faced by the banking sector
 Overexposure to the “property cycle” prior to the global financial crisis;
 Over leveraged;
 Basel III - capital adequacy requirements;
 Consolidation of banking industry :
• Legacy systems;
• Less appetite for risk;
• Focus on repairing balance sheets and profitability;
• Increased regulation FATCA, CRS, GDPR etc;
• Increasing competition from alternative finance
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Challenges faced by Trustees, SMEs, CSPs and entrepreneurs
The Challenges The Traditional Approach The Sancus Approach
Acceptable security Prescriptive, often restrictive
criteria.
An holistic view on the total asset base – we are
solution focussed.
The offshore status of the entity AML/KYC may be considered
high risk by traditional lenders.
Our specialist area, we have extensive
knowledge and experience of offshore
structures.
Lack of appetite for bridging
and development loans
May be considered high risk. We use our highly experienced teams and local
knowledge to understand the risk and mitigate
perceived risk(s).
Require interest to be serviced No appetite for roll-up of interest. Flexible, based on the needs of the Borrower,
we can offer interest roll-up albeit it at a higher
interest cost.
Where challenges exist by
having a Trust or Corporate as
a guarantor.
Client’s age profile and lack of
personal assets etc. may cause
an issue.
We take comfort when dealing with regulated
institutions and their underlying clients. We can
lend to UBOs, settlors and beneficiaries.
Raising finance against assets via traditional sources can be challenging for a Trustee or Company Directors
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What’s next?
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Contact Details (UK)
Callum Scott
Regional Director, South
Sancus Finance
e callum.scott@sancus.com
t +44 (0) 1256 657852
Peter Hudson
Director, Property Finance
Sancus Funding
e peter.hudson@sancus.com
t +44 (0)1256 898000
Sancus UK
Richard Whitehouse
Sales Director,
Sancus Funding
e richard.whitehouse@sancus.com
t +44 (0) 3301 003636
Dan Walker
Managing Director
Sancus Funding
e dan.walker@sancus.com
t +44 (0) 3301 003636
Andrew Oppe
Regional Director, London and
South East
Sancus Finance
e andrew.oppe@sancus.com
t +44 (0) 3301 003636
Sam Filer
Investment Director,
BMS Finance UK
e sam.filer@bms-finance.com
t +44 (0) 20 7092 6774 (UK)
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Contact Details (Jersey, Guernsey, Gibraltar & Isle of Man)
Michael Hennessy
Managing Director,
Sancus IOM
e michael.hennessy@sancus.com
t +44 (0)1624 604101
Matt Watson
Managing Director,
Sancus Guernsey
e matt.watson@sancus.com
t +44 (0)1481 713335
Stuart Hamilton
Business Development,
Sancus Jersey
e stuart.hamilton@sancus.com
t +44 (0)1534 708902
Stephen House
Business Development,
Sancus Jersey
e stephen.house@sancus.com
t +44 (0)1534 708908
Stephen O’Brien
Managing Director,
Sancus Gibraltar
e stephen.obrien@sancus.com
t +350 200 13702
Lino Brydges
Business Development,
Sancus Gibraltar
e lino.brydges@sancus.com
t +00 350 200 13705
Rachael Bajard
Business Development Manager,
Sancus IOM
e rachael.bajard@sancus.com
t +44 (0)1624 604104
Chris Taylor
Business Development,
Sancus Guernsey
e chris.taylor@sancus.com
t +44 (0)1481 713335
Amanda Overland
Head of Marketing,
Sancus BMS Group
e amanda.overland@sancus.com
t +44 (0)1534 708912
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Important Information and Disclaimer
Legal Disclaimer (page 1 of 2)
This Presentation (this "Document") relates to Sancus BMS Group Limited (the "Company") and its subsidiaries (the "Group") and has been delivered to you (a "recipient") for
information only. This Document does not constitute an offer or invitation to subscribe for shares or other securities issued by the Group, is not capable of acceptance by any
recipient and shall not form the basis of any contract or other arrangement between any member of the Group (or any other person) and any recipient (in any jurisdiction). Without
prejudice to the generality of the foregoing, the issue of this Document shall not be deemed to be any form of commitment on the part of the Company (or any other person) to
proceed with any investment.
The information in this Document, which does not purport to be comprehensive, has been provided by the Company and has not been independently verified.
Whilst this Document has been prepared in good faith, no representation, warranty or undertaking, express or implied, is or will be made, and no responsibility or liability is or will
be accepted by the Company or by any of its officers, employees, agents or advisers, in relation to the accuracy or completeness of this Document, the information contained in
this Document or any other written or oral information made available to any interested party or its advisers in connection with this Document, and any such liability is expressly
disclaimed. In particular, but without prejudice to the generality of the foregoing, no representation, warranty or undertaking is given as to the achievement or reasonableness of
any future projections, management estimates, prospects or returns contained in this Document or in such other written or oral information. Each recipient acknowledges and
agrees by accepting this Document that no person has, nor is held out as having, any authority to give any statement, warranty, representation, or undertaking on behalf of the
Company. The foregoing provisions of this paragraph shall not limit the liability of any person in respect of fraud or otherwise as prohibited by applicable laws.
The Company gives no undertaking to provide any recipient with access to any additional information or to update this Document or any additional information, or to correct any
inaccuracies in it which may become apparent.
Any recipient of this Document should note that this Document does not constitute an offer to the public to subscribe for securities in any member of the Group and has not
therefore been approved by any regulatory authority anywhere in the world.
Sancus (Jersey) Limited is registered with the Jersey Financial Services Commission under the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008 to carry out the
business of providing lending services, including consumer credit, mortgage credit, factoring (with or without recourse) and financing of commercial transactions (including
forfeiting). As a result of this registration Sancus (Jersey) Limited is required to comply with certain procedures to prevent and detect money laundering in accordance with the
guidance issued by the Jersey Financial Services Commission from time to time. Sancus (Jersey) Limited is also registered with the Jersey Data Protection Commissioner.​
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Important Information and Disclaimer
Legal Disclaimer (page 2 of 2)
Sancus (Guernsey) Limited is a non-regulated financial services business under the Registration of Non-Regulated Financial Services Businesses (Bailiwick of Guernsey) Law, 2008
as amended by the Registration of Non-Regulated Financial Services Businesses (Bailiwick of Guernsey) Law, 2008 (Amendment) Ordinance, 2008. This law has no effect on the
conduct of business of Sancus (Guernsey) Limited except for the requirement to carry out certain measures in connection with anti-money laundering and combating the financing of
terrorism measures in accordance with the guidance issued by the Guernsey Financial Services Commission from time to time. Sancus (Guernsey) Limited is also registered with the
Guernsey Data Protection Commissioner.
Sancus Finance Limited, BMS Finance AB Limited, Sancus BMS Group Limited and Sancus BMS (Ireland) are not regulated by the United Kingdom Financial Conduct Authority or
by the Central Bank of Ireland.
Sancus (IOM) Limited holds a Money Lending Licence issued by the Isle of Man Office of Fair Trading under the Moneylenders Act 1991, which regulates private lending in the Isle
of Man. Sancus (IOM) Limited is also registered with the Isle of Man Information Commissioner.
Sancus (Gibraltar) Limited holds a Moneylender's Licence issued by the Gibraltar Financial Services Commission under the Financial Services (Moneylending) Act 1917, which,
together with the Moneylending Rules 1917 regulates private lending in Gibraltar. Sancus (Gibraltar) Limited is also registered with the Gibraltar Data Protection Commissioner.
Sancus Funding Limited is authorised and regulated by the Financial Conduct Authority and registered with the Information Commissioner's Office under the Data Protection Act
1998.
Editor's Notes
The Banking system is failing borrowers
Regulation is part of the problem
Government is not being proactive enough
Playing at the fringes
November 1999 Clinton declared Glass Steagall was no longer appropriate. Culminated in the 1999 Gramm–Leach–Bliley Act (GLBA), which repealed the two provisions restricting affiliations between banks and securities firms. (November 12th 1999)
Â
Dodd-Frank Wall Street Reform and Consumer Protection Act passed by Obama Administration July 21st 2010
For example, the bank of England is in the midst of an ambitious rebuild of the Real Time Gross Settlement (RTGS) system – the backbone of every payment in the UK
No longer will access to central bank money be the exclusive preserve of banks.
Since 2013, 37 banks have been authorised, of which 16 are new UK bank start-ups and four are internet-only.
7 US and Chinese stocks, GAFA (Google, Amazon, Facebook & Apple) and BAT (Baidu, Alibaba and Tencent), which for the most part did not exist 25 years ago, are almost as large as the entire Eurozone market.
Cumulative flows into passive funds vs active funds since March 2009. 2018 – Active funds +$2.4 trillion, Passive funds -$1.8 trillion