Central Trust forms one of the largest and most respected independently-owned financial servicing organisations in the UK. In 2009, Central Trust took the business decision to select Target, the S&P rated primary and standby third party administrator, to provide standby servicing for the company’s new £90m funding line secured with Royal Bank of Scotland (RBS).

Challenge

Having previously invested in our financial software for proactive risk and arrears management expertise, Central Trust now needed a robust standby servicing provision for the new funding line. This was not only to facilitate new lending, but also to reassure its financial backer that its investment was adequately protected.

The Solution

As standby servicer, Target is poised to step in and effectively service the loan portfolio and mitigate risk exposure within 60 days of the service being invoked.

Central Trust has been a key client of ours for over 8 years, having previously invested in our financial software for loan account management and debt collection.

For many of our clients standby servicing is no longer a ‘nice to have’. Lenders and funders increasingly require robust and realistic standby services, not only to preserve their Rating but to provide real portfolio workout in turbulent times. We have the flexibility and expertise for a speedy portfolio transfer into Target if invoked. James Snow, CEO of Target Group

Benefits

The key benefits that we have been able to provide include:

  • Robust standby servicing provision with a clear Invocation plan
  • Transparent and governed servicing platform with high quality management information
  • Team of high calibre, experienced staff on standby to service the portfolio
  • Investor security should anything happen to the primary servicer
  • Flexibility of a servicer retained or release contract agreement.

The new funding line from Royal Bank of Scotland and standby servicing contract enabled Central Trust to restart secured lending immediately.

Flexibility and credibility were key requirements for us when sourcing a standby servicer Jason Callander, Project Manager, Central Trust