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Commercial Finance Introducer: News
29
Small
Business protection gap
businesses
Legal & General research has shareholder protection in place key person, shareholder and
redefined the Business Protection and one in two (48 per cent) do business loan protection. The
unaffected
‘gap’ at £1.1 trillion. not have any formal agreement market opportunity is there and
This is the first time in four to establish what would happen the support from providers is
years that any organisation has in the event of the death of a there, so let's get on and close
by
published an update to Swiss business owner. that gap."
Re's widely cited research from Around 50 per cent of the Legal & General recently
2005. The Business Protection businesses surveyed have launched a Business Protection
recession
circle6
gap now includes: corporate debt yet just 46 per DVD for advisers to use with
Corporate debt gap of just cent of these businesses have life their clients, to highlight the
circle6
under £300 billion or critical illness policies in place need for business protection and
Shareholder protection gap of to cover that money owed. to help advisers write more
Research launched as part of a
study by Mr Site and PayPal circle6
over £400 billion Clare Harrop, Legal & policies in this area. The DVD,
Key person protection gap of General's head of specialist entitled ‘Let's Talk Business
reveals that almost two thirds of over £400 billion protection said: "This is a big day Protection', uses real case studies
UK small businesses have been In order to calculate these for the business protection to explain why business
unaffected by the current figures, Legal & General market. We now have up-to-date protection insurance is so
financial climate. conducted research amongst figures showing just how few important. It also features
They claim they have not seen members of the British Chamber businesses are prepared to research showing the potential
a change in turnover since the of Commerce. The study showed handle an event such as the impact of not being covered to
start of the recession. The top that 44 per cent of business death or critical illness of a key highlight risks to business
three ‘recession proof ' sectors for owners say that their business person or business owner. It is owners. It is available to order
small businesses are Education, would fold within 12 months of the responsibility of the from Legal & General or can be
Manufacturing (engineering and the death or critical illness of a protection industry to get in downloaded, in full or in part,
utilities) and the Public Sector. key person. However, only 4 per front of corporate clients and from the adviser microsite:
While the legal, HR and cent of business owners make business owners aware of www.legalandgeneralcomms.co.u
finance sector has seen the most questioned said they have the importance and benefits of k/businessprotection
volatility in turnover since the
start of the recession, service
providers overall are proving to
be the most resilient, with a
higher than average 65 per cent
Abbey and Alliance &
reporting no change or in fact an
increase in their turnover during
the period. Just one in 20 small
Leicester rebranded
goods sellers have however
managed an increase in their Abbey and Alliance & Leicester have "By bringing together the local towards longer-term success."
turnover since the start of the started to rebrand its UK corporate knowledge of Alliance & Leicester's Pateman concluded: "Santander
recession. and commercial banking divisions regional corporate banking centres, already has a successful corporate
The study suggests that the to Santander Corporate Banking. the specialist sector knowledge of and commercial banking model,
internet has played an important The move will result in the Abbey's corporate banking teams which focuses on its customer
role in keeping small enterprises bank’s network of 20 regional and Santander's credibility as one of relationships and taking prudent
afloat; over a third (40 per cent) corporate banking centres being the strongest and best capitalised and sensible commercial risks. By
confirm that the introduction of rebranded during the remainder of banks in the world, we can provide adopting this global approach we
an online shop increased their 2009. customers with a very compelling believe the opportunity exists to
earnings by up to 30 per cent in The change follows the banking service. really grow our UK SME business
the last year. A further 56 per announcement that Santander's “We are building a business that significantly in 2009 and beyond."
cent say that simply having a three UK businesses, Abbey, has relationship banking at its During July, Manchester will
website has increased their Alliance & Leicester and Bradford & heart. We are committed to become the first centre to be
turnover in the same period. As a Bingley Savings, will adopt the building strong relationships based renamed, followed by Nottingham.
result, one in six (16 per cent) Santander global brand and name on an understanding of the The bank is writing to all existing
small businesses are now in 2010. business and its needs, providing customers of Abbey UK Corporate
considering moving their Steve Pateman, head of them with solutions and services Banking and Alliance & Leicester
business purely online in order to Santander Corporate Banking, said: that fit those needs. We plan to Commercial Bank to make them
get through the credit crunch. "Santander has a clear strategy of expand our regional network and aware of the new brand. For
This figure leaps to 37 per cent of increasing its presence in the UK are recruiting additional further information on the full
small businesses in London, corporate market and the rebrand relationship managers, giving us the range of services available from
perhaps in response to property to Santander Corporate Banking is opportunity to develop close Santander Corporate Banking,
prices and rents still being a clear demonstration of our relationships with local businesses business owners and finance
significantly higher than average ambition to become the bank of helping them through some of the directors should visit
nationwide levels. choice for businesses. challenges they may now face www.ukcorporatebanking.com
www.mortgageintroducer.com July/August 2009 Mortgage Introducer
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