finance 29 Solent sounds good to Santander


Having grown its business banking team tenfold in less than three years, Santander Corporate Banking is firmly committed to supporting business in the Solent region


Since its launch in 2008, Santander Corporate Banking has become a major player in the business banking market in the UK. Its market share is expected to be 9% following the acquisition of 44 RBS corporate business centres.


Last year alone, Santander Corporate Banking, a UK-owned bank, made new lending commitments totalling £8.8 billion to businesses nationwide. It started new banking relationships with 2,000 businesses with turnover of more than £1 million, an increase of one-third compared to 2010.


Lending to small and medium-sized enterprises grew by 25% in 2011, and Santander Corporate Banking made new lending commitments worth £4.3b – ahead of its own projections and fully meeting its obligations under the Project Merlin agreement.


A willingness to develop relationships with customers has been a vital element of this success. By becoming a business partner rather than just a finance provider, Santander Corporate Banking has developed a deeper understanding of the needs of its customers – backed up by a team of experienced relationship directors and a nationwide network of corporate business centres.


In the three years since the Solent business banking team was created it has grown in number from three to 30, explains regional director Alex Fuller. “The team includes 13 relationship directors who work directly with customers in areas ranging from manufacturing to IT. We have separate teams for real estate and public finance and infrastructure (which includes care homes and educational establishments), but we don’t have separate business development people – our relationship directors are the point of contact for the customer from the outset.


“We work with businesses that have turnover of £250,000 upwards. SMEs are vital to the economy as a whole and we get just as excited working with small businesses as with major companies.“


The Solent region is synonymous with retail, leisure and maritime activity as well as public finance and infrastructure, and Fuller says he is constantly talking to potential new customers. “Taking care of existing customers is vital, but we are also looking to win new business. If you don’t understand the customer you cannot help them – we are a young bank going back to an almost old-fashioned approach to banking and because of this we are seeing companies actively seeking us out to work with them. Customers want clarity, honesty and prompt follow-up.“


These values are certainly appreciated by automotive engineering specialist Formhalls Vintage & Racing, which recently secured a new funding package from Santander Corporate Banking – worth just over £85,000 over a 10-year term – to help put the company on a firm footing


for future growth with the acquisition of the freehold of its business premises in Downton Business Park, Wiltshire.


The business, run by husband and wife team Terry and Heather Formhalls, specialises in the assembly and maintenance of engines for a wide range of transport, including vintage cars, motorbikes, airplanes and marine craft. Formhalls moved to the site in Parkers Close, Downton Business Park, last year after an increase in demand for its services and the acquisition of a machine shop in Bristol. It also operates from a site in Salisbury and has an additional casting shop in Fordingbridge.


The company quickly expanded to meet demand, almost doubling its turnover thanks to the increased efficiency and extra workspace facilitated by the new premises, providing a secure and stable foundation for further growth in the future.


Terry, who founded the business more than 20 years ago, has more than 40 years’ experience in the industry. He is a former technical adviser to Classic Cars magazine and was the programme leader for engineering at Southampton City College.


“At Formhalls Vintage & Racing we recognise the importance of a positive approach in everything we do,“ he explains. “Our customers appreciate our ’can do’ attitude and continue to entrust us with many exciting (and sometimes priceless) projects. This has enabled us to grow steadily to a point where we are now in a position to encourage the next generation of engineers to follow in our footsteps and preserve our great British heritage.


“It has been an absolute pleasure to deal with Santander, a bank which shares our work ethic and has been an outstanding help to our business during the current phase of our planned expansion. Jacqui Gregory, the firm’s relationship director, and her team have been proactive all through our negotiations to acquire additional premises and have dealt with matters in the most professional and helpful way.“


Gregory describes Formhalls as exactly the type of well-managed small business that Santander Corporate Banking is committed to supporting. “Working with the directors has been a pleasure and I look forward to helping the business continue to prosper and grow.“


When asked about the most important issues facing businesses across the region, Fuller says that aside from the health of the economy, companies find investment decision-making harder because they read so many differing stories about the future prospects of the economy. “However, many are accepting that this is the new norm, and those who are performing well now – having taken the necessary steps in the past – are thinking about the next phase of their development and identifying potential opportunities.“


THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – SEPTEMBER 2012


Santander Corporate Banking provides a full range of services from basic banking to asset finance, invoice finance and trade finance, he continues. “But supporting businesses is not just about lending money – part of the reason for our success is that we are winning business based on relationships. Our support team takes the time to get to know the business and we have local credit partners who get involved in credit transactions, which enables a round-table discussion.“


With 15 years’ experience in the banking sector, Fuller says joining Santander in 2010 was a unique opportunity to make a difference to the way business banking services are delivered in the Solent region: “It represented a chance to lead a new team with people from a diverse range of backgrounds in one of the most dynamic regions of the UK and was an opportunity to build something from scratch. The challenge of winning business from companies who have banked with their previous provider for years or even decades is very exciting.“


His objectives for the role are to continue growing the business banking team and to have local representation in all core markets. “We will have a lot of new people coming into the business over the next year following the acquisition of the RBS corporate business centres, and that will be an integration challenge.“


Fuller says he wants businesses to come to Santander Corporate Banking because it does things differently and describes the bank’s Breakthrough programme as a perfect example of this approach.


This programme is identifying the UK’s most entrepreneurial small and medium-sized businesses, supporting them by providing advice and funding, as well as the chance to visit and learn from successful companies and leading entrepreneurs. The programme is designed to help fast-growth businesses unlock their potential. It is making £200m available to entrepreneurial firms with a track record of growth, a strong business plan and international ambition. Companies entering the programme will typically have annual sales of between £500,000 and £10m, along with annual growth rates of 20% or above.


“Breakthrough encapsulates everything that makes Santander different,“ concludes Fuller. “It is truly ground-breaking.“


To start working with Santander contact your local relationship team: 023-8083-1995 www.santandercb.co.uk


For more information on Breakthrough: www.santanderbreakthrough.co.uk


www.businessmag.co.uk


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