Industry insiders
Adding support
Working together
Damian McGann, Head of Business Development,
Santander Corporate
At Santander Corporate, Commercial and Business Banking we are committed to working with the intermediary market and to building-on, and developing the already strong relationships we have within the intermediary channels. Santander increased lending to businesses by 25% in 2011 and with the support of our intermediary partners in 2012, we want to continue to play our part in supporting the market.
Following the merger of Santander’s Business Banking and Corporate and Commercial divisions, Santander is bringing the internal relationship teams together, which means intermediaries will have access to more managers covering all types and sizes of transactions.
We’re also appointing new Business Development Directors across the country who will be responsible for building strong relationships with the intermediaries operating in their region. Like any business that wants to grow, we need to adapt and adjust the way we do business, so that we can continue to meet our customers’ expectations. As Santander Corporate, Commercial and Business Banking grows, we want to work more closely with the UK intermediary network.
In the current economic climate, it is more important than ever to put the customer at the heart of the relationship, rather than a particular product. This is a much more holistic approach than we have had in the past - customer orientated rather than product orientated - and is the approach that we believe can achieve the best value for the customer, the intermediary and the bank. It’s not just about identifying the lender with the best deal on day one, but understanding which lender is best suited to building a relationship and helping the business achieve its ambitions and growth potential in the long term.
To complement this customer-orientated, relationship-based approach, we are increasing the range of products available through the broker channel. We are currently looking into how best to open up additional products, such as overdrafts, asset finance and invoice discounting, to the channel, as we believe an increased product range will help intermediaries provide a more holistic service to their clients and, in turn, also provide intermediaries with a valuable additional income stream.
As two-time winner of the National Association of Commercial Finance Brokers’ ‘Most Supportive Lender’ award - as voted for by brokers - we feel confident in saying we already have a good understanding of the industry. However, with more than 700 new staff joining Santander Corporate, Commercial and Business Banking this year, we will be even better equipped to work with intermediaries and provide a more holistic, customer- orientated and localised approach.
LINK:
www.santander.co.uk
Cautious optimism
Looking forward
Kate Sharp, CEO, Asset Based Finance
Association
2011 proved to be another tough year for many businesses. The economic backdrop remained challenging and many businesses found it difficult to access the funds they required. Nevertheless, the asset based finance industry has historically faired well during times of economic distress and 2011 was no different with the industry continuing to grow strongly throughout the year. During 2011 the asset based finance industry remained a major player for companies of all sizes looking to raise finance. Its unusual capacity to perform well while the wider market is struggling is largely due to a unique coupling offered by asset based finance solutions; the ability to offer clients greater levels of finance while at the same time reducing the risk for lenders.
Third quarter 2011 figures from the Asset Based Finance Association (ABFA) highlight the popularity of these products with asset based finance solutions growing more than all other forms of lending. Total advances showed a 9% increase compared to the same period last year and total funding by ABFA members also reached £16 billion, with very little change to client numbers. This suggests good growth amongst existing clients and a trend towards larger businesses using invoice finance. The industry’s European figures also follow this positive trend with turnover from UK firms which use invoice finance the highest in Europe at €122 billion. Also noteworthy is that nearly every European country saw clients which use invoice finance record double-digit turnover growth compared to last year.
The Chancellor’s Autumn Statement at the end of November offered some optimism for 2012. The announcements under the credit easing umbrella, although ambitious, indicate a determination on the part of Government to provide SMEs and other businesses with increased access to funding. The ABFA will also continue to work closely with the Treasury to increase the invoice finance industry’s involvement and support for SMEs and these new initiatives.
The ABFA has played a key role in a number of lobbying activities throughout 2011 and this will continue into 2012. One of the key activities that the ABFA has been involved in is the issue surrounding ‘pay when paid’ clauses within the recruitment industry. The ABFA and APSCo have been working together to educate RPOs and MSPs on the financing difficulties for recruitment agencies and their funders when it comes to ‘pay when paid’. It is hoped that these discussions will result in an all-encompassing code of conduct that suits all parties.
Despite the difficult economic context of 2011 the asset based finance industry has continued to grow and the ABFA remains positive about what the industry can offer UK and Irish businesses during 2012.
LINK:
www.abfa.org.uk March 2012 Business Moneyfacts ® 17
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