Thought Leaders

Compass: Celebrating two decades of success

Share

Insights from Mark Nelson, Director of Compass Business Finance

As Compass Business Finance approaches its 20th anniversary, the company has plenty to celebrate. From its roots as a small, dedicated team to its current position as a respected hybrid lender-broker, Compass has built a legacy of steady growth, customer-first values, and industry expertise.

We sat down with Mark Nelson, Director at Compass, to explore the philosophy behind their success, their strategic focus on new markets, and what lies ahead for the company.

A 20-year milestone and the Compass philosophy

Reflecting on two decades in the financial services sector, Mark Nelson attributes Compass’s longevity to its unwavering commitment to its core ethos: putting customers first. “From day one, our focus has been on building long-term relationships,” Mark explains. “When we started, I was just 25 years old, and I knew we had to treat customers, brokers, and partners the right way if we wanted to last.”

That customer-first philosophy has also guided their hiring strategy. “Our team is the strongest it’s ever been. We’ve invested in building a group of people who fit seamlessly with the business, and that’s been instrumental in achieving our goals,” says Mark.

The power of steady growth

While Compass has seen phases of rapid expansion, its success has been built on a foundation of steady, incremental growth. Mark acknowledges the importance of this measured approach: “Sustained, rapid growth is not always feasible or sustainable. Instead, we’ve focused on preparing for growth by bringing in the right people, implementing new processes, and adopting technology that aligns with our goals.”

This cyclical strategy of preparation and execution has allowed Compass to thrive without overstretching its resources.

Balancing relationships and technology

In an era where automation and efficiency are key drivers, Compass remains steadfast in its dedication to building strong, personal relationships with its SME and broker partners. “The end customer, supplier, and broker relationships are sacrosanct,” says Mark. “While we’ve embraced automation to streamline processes and free up time, the personal touch remains central to how we operate.”

Compass strikes a balance by leveraging technology to improve efficiency while maintaining the “old-school methodology” of doing business. This blend allows the team to focus on customer retention and relationship-building—an area where Compass prides itself on excelling.

Expanding into the construction sector

A key part of Compass’s recent growth strategy has been its expansion into the construction sector, a move Mark describes as a natural progression. “The construction market aligns closely with other sectors we’ve worked in, like engineering. These industries have well-established needs for hard asset funding,” he explains.

To ensure success, Compass has brought in industry specialists like Lauren Duke and Head of Credit Ken Archbold, whose expertise and connections have been instrumental in navigating this market.

“By replicating the approach we used to establish ourselves in engineering, we’ve built a solid foundation in construction without spreading ourselves too thin.”

Mark acknowledges the challenges that come with funding new asset types, particularly in construction. “Assets with wheels, for example, require a deeper understanding of their value and usage,” he notes. By hiring specialists who understand the nuances of the sector, Compass has been able to mitigate risks and deliver tailored solutions.

The hybrid lender-broker model: a winning formula

Compass’s hybrid lender-broker model, established from the company’s inception, continues to set it apart. “This model allows us to offer a wider range of funding options to our customers while maintaining control over lending decisions,” says Mark.

When deciding whether to lend directly or act as a broker, the choice is always customer driven. “It’s about doing what’s right for the customer,” Mark emphasises.

Fostering strong broker relationships

As Compass grows its broker business, the company remains selective about the brokers it partners with. “We look for brokers who share our mindset and values,” Mark explains. “They represent the Compass brand, so trustworthiness and market knowledge are critical.”

The recent appointment of Katie Dowse as broker development manager, alongside Ken Archbold, is pivotal in driving the growth of Compass’s broker channel.

Compass has also adapted to increased regulatory scrutiny following the recent Court of Appeal motor finance ruling, ensuring that its brokers have the necessary accreditations and compliance structures in place.

A people-first culture

Compass’s recognition as the best industry organisation to work for at the Asset Finance Connect Summer Awards 2024 is a testament to its employee-focused culture. “This award means the world to us because it was voted for by our team,” says Mark. “You’re only as good as the people you work with, and our team is aligned and moving in the same direction.”

To foster innovation, Compass encourages open communication through regular company meetings and a welcoming environment for new ideas. “We’ve cultivated a culture where everyone feels empowered to contribute,” says Mark.

Looking ahead: new markets and continued growth

As Compass enters its third decade, the company is focused on consolidating its presence in new markets like construction and engineering. “We’re happy with where we are right now, but our growth will accelerate across all areas of the business,” Mark says.

Despite the unpredictability of the financial services landscape, Mark is optimistic about the future of asset finance. “The UK asset finance industry will continue to grow, and Compass will play a big role in supporting SMEs as they navigate the opportunities ahead.”

With its customer-first philosophy, commitment to innovation, and strong team, Compass Business Finance is well-positioned for continued success in the years to come.