finance 33 Thames Valley business flows
The launch of Santander Corporate Banking’s new corporate business centre in Oxford will help it tap into the optimism of businesses across the Thames Valley - businesses that have seen their revenues growing despite the challenging economic climate
Since its launch in 2008, Santander Corporate Banking has become a major player in the business banking market in the UK with an expected market share of 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, of which Oxford will be the latest addition.
The Santander Thames Valley business banking team was established in 2010, explains Cheryl Adams, regional director. “We have dedicated teams for real estate and an education, health and charity team, but we don’t have separate business development people. Our relationship directors are the single point of contact for the customer from the outset.”
The 30-strong team work with companies across all sectors and with turnovers from £250,000 to £150m, although the majority of customers are small to medium-sized enterprises.
Information technology and telecommunications are key industries in the region, says Adams. “As we cover Oxford we have a lot of university business, which is very important to us. However, SMEs are vital to the economy as a whole and we get just as excited working with small businesses as with major companies. We talk to potential customers all the time – looking after existing customers is vital but we are also looking to win new business.”
She refers to businesses in the Thames Valley as being generally positive about their future prospects, a view supported by research conducted by accountancy network BDO and business network The Twenties Club.
The inaugural BDO Thames Valley Business Barometer – a quarterly snapshot of business and economic confidence in the region, published in June – found that local businesses were bucking
THE BUSINESS MAGAZINE – THAMES VALLEY – SEPTEMBER 2012
the national trend, with new business pipelines having increased for the majority (64%) of the firms surveyed over the previous three months.
More than half experienced an increase in turnover in the preceding quarter, and 61% predicted further growth in the next quarter, with small businesses being even more optimistic. Profits were up for 47% of respondents and winning new business was seen as a key investment area for the region’s business leaders.
Of particular interest to Adams and her team was that the survey reported the majority of respondents referred to the availability of finance as the major challenge for businesses in the Thames Valley, with just one in 10 saying it had become easier to access finance in the last quarter.
“We provide a full range of services from basic banking to asset finance, invoice finance and trade finance,” she explains. “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 take the time to get to know the business, which creates continuity.
“We are a relationship bank, and it is vital for customers to have a relationship with their bank as well as access to funds,” Adams continues. “We are constantly talking to local businesses that are not getting either the relationship or the funding they need from their existing bank.”
A recent example of an enterprise that has moved its banking business to Santander is Banbury Dental Surgery. The practice is set for growth with the provision of improved NHS access after being purchased by Dr Jai Basudev, with the backing of a finance package from Santander Corporate Banking.
Basudev, an experienced dentist with a practice in Bedford, has purchased the business in a move that will enable him to expand his existing operation. Banbury Dental Surgery has been established for more than 10 years and recently relocated to Hanwell Fields, offering more surgeries and parking for easier access. Basudev has been running the Bedford Dental Practice since 2009 and has grown the business, extending the range of services offered to include cosmetic dentistry and implants. He intends to introduce similar services to the Banbury practice.
“I am really looking forward to embarking on this new project,” he explains. “Growing my first dental practice has given me a wealth of experience to draw on and I am looking forward to putting everything I have learned into practice as I manage and grow this well established business. With the additional funding we can now offer more access
to NHS dentistry while providing high-quality cosmetic treatments such as implants and invisible braces. “The team at Santander really took the time to understand what I wanted to do and came up with a great overall package that met my needs. I look forward to continuing my relationship with them as I build this practice.”
Justin Hayward, Santander corporate banking relationship director, says he has every confidence that Basudev will make a great success of this new business. “We are delighted to be able to help Jai purchase this practice. He not only has many years’ experience in the profession, but has also purchased, managed and grown a similar practice previously.”
Banbury Dental Surgery has transferred all its banking business to Santander and Hayward says this is a validation of the bank’s approach to business banking in the Thames Valley. “We are keen to develop our relationship with Jai and support him as he takes this great local practice on.”
Adams, who joined Santander in January 2012, has 27 years’ banking experience in the UK and North America. She says the fact that Santander is a fast growing bank was a major factor in taking on the role of regional director for the Thames Valley region. “Santander is very entrepreneurial in its approach and that is important to me. I am also working with a group of people that has massive experience in business banking. My objective is to build the best corporate banking team in Thames Valley, which is about doing the right things for customers. This is a people business and that is a real point of differentiation between Santander and other banks.”
Another unique aspect of Santander’s approach to business banking is its Breakthrough programme through which it is identifying the UK’s most entrepreneurial small and medium-sized businesses and targeting them with dedicated support, finance and the chance to open new sales channels around the world.
The programme is making £200 million available to entrepreneurial firms with a track record of growth, a strong business plan and international ambition. Those entering the programme will typically have annual sales of between £500,000 and £10m, along with annual growth rates of 20% or above.
“In November we will be hosting a ‘Breakthrough Live’ event in Oxford,” explains Adams. “Fast- growing businesses (both in terms of turnover and staff levels) will be invited to find out more about the programme, which is paving the way for new, up-and-coming businesses and the entrepreneurs of tomorrow.”
Contact you local relationship team on 0118-9211680 or visit
www.santandercb.co.uk
For more information on Breakthrough visit
www.santanderbreakthrough.co.uk
www.businessmag.co.uk
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