The specialist savings and lending bank came to market in April 2011 after being bought by RBS Equity Finance, which allowed the business to grow. Subsequently, Shawbrook was able to buy further lending facilities, enabling the bank to develop towards its current model and branding launch in October last year.

Two months later, Shawbrook revealed a short-term lending proposition as a complementary addition to its successful mid-term offering, establishing a strong market position and diversifying product range.

We caught up with Stephen Johnson, Shawbrook Bank’s New Business Director, who told us more about what Shawbrook has to offer and what’s to come in 2012.

Stephen said, “We want to build on this strong start, and our recent move into short-term lending is an exciting move for the bank. We have had a strong response and look forward to becoming a significant lender into the short-term loan sector.”

Explaining a little more about the new product range, Stephen added: “There is a lot of uncertainty within the wider economy at the moment. Our short-term products are specifically designed for experienced property investors and although the climate is changeable, there are strong buying opportunities out there and therefore we believe there will be a significant amount of demand to be satisfied.”

Despite having been launched just before Christmas, Stephen told us that Shawbrook has already made a number of formal offers to clients who fit the experienced property professional requirement.

He continued, “Most of our prospective clients are looking to finance the purchase of residential and mixed-use investment properties with an established rental income. We have also had enquires for refurbishments on prime property from those looking to increase rental return over the medium term”.

Looking ahead to the rest of the year, Shawbrook looks set to continue growing. Stephen said: “Since introducing our extended range of commercial lending products, our aim for 2012 is to provide £250 million of lending to the market.”

“We are keen to develop our lending proposition, and are particularly focused on identifying complementary markets to our term lending. We are enthusiastic about the opportunities we believe exist in 2012 for a specialist bank with no legacy issues.”

However, Stephen noted that the new offering will remain as an extension of Shawbrook’s existing product range: “The majority of our funds will still be lent in the mid-term market which will be about 70 per cent of our loan book. The remaining 30 per cent will be in the short-term market where we expect to expand our business in the coming year.”

With such triumphs leading the way into the New Year, 2012 is set to be prosperous for the entire short-term lending arena with continually increasing confidence in a steadily expanding market.

Article contributed by Bridging and Commercial

As it released the figures, which go back to 2007, the Cooperative Group’s banking division set a target to double the funding to £1bn by 2013, as part of the wider group’s corporate responsibility strategy, called Ethical Plan.

The Co-operative Bank, which prides itself as an ethical lender, has funded 108 renewable energy projects over the period with a capital value of £1m to £25m.

Projects are typically taken on by smaller developers, community groups and landowners as a means to diversify income, according to a statement from the bank released with the figures.

The projects funded include onshore wind, hydro, biomass and combined heat and power systems, and the bank has a renewable energy team to deal with planning permission and grid connection on behalf of clients.

Richard Wilcox, head of social banking at The Co-operative, said: “At a time when many communities are fighting for survival from the wider economic challenges, small to medium renewable energy schemes provide an opportunity for communities to become sustainable, creating local jobs and diversifying local economies.”

Renewable energy projects in the UK currently receive around £1.4bn a year in government support through the Renewables Obligation Certificates (ROC) scheme.

However, a review of the scheme has been delayed, which could stall renewable energy investment, Wilcox warned.

“We welcome the Government’s commitment to renewable energy investment which has helped to provide an enabling arena for our rapid growth in renewable investment,” he said.

“However, there is a real danger that this could grind to a halt if the review of ROCs and pending review of feed-in tariffs are not completed quickly and with a view to nurturing our fledgling environmental industries.”

Article contributed by: Leasing Life

The research demonstrates that a significant number of SMEs feel banks are failing to make it easy for them to borrow, despite continued calls for banks to lend more freely to small businesses to help them grow.

There is widespread frustration among SMEs with the way they are dealt with by banks, despite their appetite to borrow. Almost half (45 per cent) of SMEs questioned feel banks are too bureaucratic when dealing with small businesses, and only 6 per cent of SMEs questioned feel confident that banks are clear and transparent in their dealings with small business customers.

The survey of over 800 SMEs was commissioned by Shawbrook Bank, a specialist in savings and lending, which aims to make it easier and more straightforward for credit-worthy SMEs to borrow.

Shawbrook has chosen to distribute its banking products through brokers rather than using a branch network. Working with brokers and a streamlined lending process enables Shawbrook to meet the needs of many credit-worthy SMEs looking for a bank that can act quickly, efficiently and with common sense when a loan is needed.

Owen Woodley, CEO of Shawbrook Bank said:
“At a time when SMEs should be given all the help they need to grow and succeed, it’s worrying that so many feel they are up against a loan application system that is unclear and obstructive.

“Having access to the right finance at the right time is vital for an expanding small business – and so is having a straightforward and efficient lending process. It’s all very well for a bank to say the money for SMEs is there to lend, but if the process is bureaucratic and inflexible it means nothing but lost opportunities and slowed growth.

“When we created Shawbrook Bank we spent time listening to the needs of small businesses. We have chosen to operate through brokers rather than a branch network which makes us efficient and agile, and we make fast, robust decisions based on common sense and knowledge of our customers – not a computer score.”

Shawbrook Bank will offer lending and savings products to small and medium-sized businesses, and individuals. Lending to SMEs lies at the core of its business, and it is focussed on making it easier for credit-worthy SMEs to borrow in the most flexible and efficient way.

About Shawbrook Bank
• Shawbrook Bank is a new specialist savings and lending bank that offers a straightforward, no nonsense alternative to the high street
• Shawbrook Bank launched on Monday 17th October 2011
• Shawbrook Bank has combined the savings and lending expertise of three financial businesses – Whiteaway Laidlaw Bank (WLB), Link Loans and the lending platform of Commercial First. Link Loans and the lending platform of Commercial First became part of WLB in August 2011 and March 2011 respectively.

• Shawbrook offers loans secured on property for business customers. Shawbrook distributes all its lending products through brokers
• For personal customers, Shawbrook offers savings accounts, secured loans and home improvement loans
• Opinium Research interviewed 804 owners, directors and board members of small and medium sized businesses (up to 249 employees) between 13th and 22nd September 2011

Article contributed by Shawbrook Bank

The award ceremony, held in the Summer Pavilion at the Tower of London this year, recognises the best and brightest of the bridging world.

British bank Aldemore, which has grown substantially in the last few years, is backed by AnaCap Financial Partners LLP and Morgan Stanley Alternative Investment Partners.

Managing Director of Aldemore Commercial Mortgages, Rob Lankey said: “During 2010 Aldemore more than doubled the amount it lent to small and medium sized businesses.

“Across all asset groups, the bank had outstanding loans worth £410.2 million at the end of the year, compared to £198.6 million at the end of 2009. By the end of the first quarter 2011, that number has jumped to £468.7 million; an increase of 14% in just three months.”

Philip Monks, Aldemore’s CEO, also commented on the company’s growth: “The relative ease at which we are beating our growth forecasts is proof that we have established a very successful and efficient business banking platform. Small businesses clearly like the service that we are providing them with,” he said.

Aldemore is especially pleased with the win due to the fact that the nomination was made by brokers. Mr Lankey said: “Our formula for success has been to deliver what we’ve always promised from the outset: simple products supported by an easy to understand process; the ability to develop tailored solutions for clients rather than simply saying ‘no’ if cases don’t immediately fit; short lines of communications which include giving brokers access to expertise (even if it’s out of hours and late into the evening) and, perhaps most importantly, fast decisions.”

He added: “Feedback from brokers has ben excellent and they seem to genuinely appreciate that they can access everything they need under one roof at Aldemore.”

Looking to the future, Aldemore hopes to continue its success. “Being voted the Best Commercial Lender twice in a row was fantastic, but it’s our intention to make our service even better during 2011.

“We’re currently midway through the implementation of a major systems upgrade project, which should go live later this year and which I firmly believe will enable us to open up our lead even further,” he said.

Article contributed by Bridging and Commercial

Invoice-based finance in general, and invoice securitisation in particular, is regarded by the surveyed banks as an essential tool in structuring, or restructuring, a corporate finance programme, with 64% of the respondents rating the technique as “very important”. TR securitisation is also viewed as an especially attractive tool for sub-investment grade (SIG) companies in what remains a tight market for relationship credit.

Since the underlying portfolio, rather than the balance sheet of the originator, represents the key risk factor in such securitisations, almost 80% of the respondents agreed that TR securitisation offers SIG or unrated companies better funding rates than relationship lending. As banks are constantly looking for efficient lending mechanisms in light of the fiercer regulatory environment, research participants also believe that TR securitisation presents banks with a safer, more secured way of allocating capital while allowing them to continue to provide funding through revolving bank facilities.

Although trade receivables securitisation volumes dropped during 2008-9, they are gradually reviving, with over 75% of the survey participants anticipate that the growth in the sector will be “steady” in the coming years. At least 25% of the bankers have seen “many more” SIG companies embarking on TR securitisations over the past 18 months and even more deals are being evaluated at the moment. Similar to SIG companies, 90% of the respondents also believe that TR securitisation would make a good funding tool for unrated companies. Given that there is a sizable universe of unrated European enterprises, including mid-caps such as the German Mittelstand, there is a large market potential for the utilisation of TR securitisation in this particular sphere.

Avarina Miller, Senior Vice President of Demica, comments, “In the aftermath of the financial crisis, companies are now much more aware of the advantages and necessity in accessing liquidity outside the straightforward vanilla bank market. It is therefore of vital importance that firms explore a broader funding strategy which allows them to gain access to different funding channels.

“As demonstrated in our research, trade receivables securitisation is a particularly effective funding tool for sub-investment grade companies, as the financing is based on the debtor risk profile rather than the creditor’s rating. Since a robust monitoring system of the receivables pool is indispensable in trade receivables securitisation, better working capital visibility and management often comes along as a welcome by-product in addition to diversifying funding sources.”

Contributed by Lindsell Marketing

www.demica.com

This shows an encouraging level of £47.3 billion in new lending to UK businesses and vindicates the decision to make available additional capacity in case of business demand, which brings the total available up to £190 billion over the full year.

Within the overall total, first quarter lending to SMEs was £16.8 billion, very nearly matching the ’stretched’ lending intentions underpinning the Merlin agreement, but the available capacity was not fully taken up due to muted demand. While in line with expectations, SME lending demand reflects the relatively slow growth in demand for goods and services in the economy as a whole at present. The April CBI survey of SME expansion intention highlighted this issue, with 69% of SMEs citing order levels as their number 1 concern. Only 8% of SMEs cited finance as a concern, reflecting the efforts that the banks have made in honouring their Merlin commitments and raising business confidence as to the availability of finance once economic demand recovers.

In order to help SMEs to grow, manage their businesses well and gain access to the borrowing they need, the Merlin banks and Standard Chartered have been, in addition to the significant individual actions undertaken by each bank, implementing the recommendations of the Business Finance Taskforce, including the launch of a nationwide business mentoring service. (Further details on the implementation of the full range of the Taskforce’s recommendations can be found at http://www.betterbusinessfinance.co.uk/)

A spokesman for the Merlin banks said, “These numbers demonstrate the determination of the Merlin banks to lend to viable businesses – it has been a solid start to the year. Demand in some sectors, particularly among SMEs, remains muted, but we are devoting considerable time, effort and resource, particularly through the Better Business Finance initiatives, to ensure that we help viable businesses to access finance. Nonetheless, economic conditions remain challenging, and demand for lending is likely to vary through the year. So whilst these numbers are encouraging, it is too early to draw conclusions as to the year-end outcome.”

Image copyright: Flickr

“One would have had to have been living on another planet not to have noticed the huge fanfare that surrounded the launch of Project Merlin last month (February). In short, Britain’s largest banks have signed up to a series of pay and lending reforms as part of a Government-led deal aimed at calming the criticism that the banking community has faced since the financial crisis began.

“The UK’s four biggest lenders – Barclays, HSBC, Lloyds Banking Group and Royal Bank of Scotland – have committed themselves to making £190 billion of gross new lending available, £76 billion of which is ‘new’ lending to small and medium sized enterprises. The proof of the pudding, as they say, is in the eating.

“Touch Financial’s own research, conducted shortly before the new initiative was announced, made it very clear that banks were not lending, despite what their PR machines suggested to the contrary. Out of 300 businesses questioned, just under half (47 percent) had been turned down for a loan in the past 12 months and 70 percent knew another business who’d been turned down for finances over the past year. A resounding 92 percent felt that the Government needed to force the banks’ hands in lending matters, so to this end, Project Merlin is a welcome move.

“So why do I have such a problem with it? Perhaps it is because there is a potential disconnect between what some banks are saying, and what they are actually doing. There is plenty of hyperbole around ‘commitment to the SME community’ with as yet little evidence of what is being done and certainly little talk of Invoice Finance. It is early days, of course, but I worry that not all banks understand the critical importance of Invoice Finance to the SME community. It appears that banks’ creative thinking rarely takes them beyond the basic loan or overdraft, repayable on demand, so that the risk is all one sided, and further funding is not available until the original loan has been repaid. They either don’t think of factoring, or if they do, it seems they are not aware that they have a dedicated Invoice Finance division that could help.

“Banks argue, with some justification, that companies that are heavily indebted are not viable; we would argue that many such businesses are viable, but are simply not being made aware of alternative financing options available to them. Relying on an unsecured overdraft offers little stability for a business, as many found out last year to their cost when the banks called in their loans. However, Invoice Finance – favoured by those without sufficient security or a strong track record required for an overdraft – is fast becoming popular with mid-tier businesses.

“Invoice finance offers businesses funding based on their most viable asset – their sales ledger. It serves to immediately release cash tied up in unpaid invoices, giving the business immediate access to cashflow it has already earned but not yet received. I believe it presents the best opportunity for banks to offer controlled access to stable funding based on a secure asset. I also think that it would enable banks to show their true appetite to help small businesses – beyond an agreement that is fast looking like it is not worth the paper it is written on.

“Banks are missing a huge opportunity to embrace Invoice Finance through what can only be described as an outdated notion of it being ‘finance of the last resort’. The truth is that it is only a lack of knowledge of where and when invoice finance is appropriate that is preventing its wider use.

“If banks genuinely do have an appetite to lend, then they should lend to businesses based on the viability of their sales ledger. We’d like to see banks make Invoice Finance a mainstream product for their business customers, and give bank managers better training on all the products available to their customer, even those which, up until now, might have been considered niche.”

Article contributed by Simon Carter of Touch Financial

He joined Aldermore with the bank’s acquisition last year of invoice finance specialist Absolute Invoice Finance, where he had worked for nine years.

Launched in 2009, Aldermore focuses its lending activity on small and medium-sized businesses. In its first year, Aldermore lent more than £300m to SMEs.

The bank has grown steadily since then with funding to SMEs in the second quarter totalling £302m.

Philip Monks, the chief executive of Aldermore, said: “Our strategy since launch has been to couple fairly priced and transparent products with taking a personal approach to the SMEs we lend to.

“Ian, with his considerable expertise in business banking and commercial lending helped make that formula work so well at Aldermore’s Invoice Finance operation, and I know that he will achieve even more in his expanded role.”

Aldermore Bank website: http://www.aldermore.co.uk/

The survey, conducted by EPSI Rating, is based on a pan European model already used to benchmark banks in 11 other countries, over 20 years.

Professor Jan Eklof, coordinator of the survey commented, “This survey shows that customer satisfaction with Handelsbanken is significantly higher than the industry average and that the bank’s customers are also very loyal. This separates Handelsbanken from other specially analysed banks in the study and depicts results which are consistent with surveys undertaken in other countries.”

Handelsbanken’s decentralised approach allows them to adapt quickly to the requirements and wishes of its customers, with decision making being made locally by its branch managers. This may appear to be a simple proposition, but it is one that is proving successful for the Swedish bank in the UK.

Handelsbanken, which has a rapidly expanding network of over 90 across the country was ranked top by both its business and personal customers in terms of satisfaction and for customer loyalty.

The survey follows record growth numbers in the UK by the bank during 2010, opening 21 branches and the announcement of the opening of a third Regional Head Office in Birmingham to support further expansion in the UK banking market.

Anders Bouvin, head of the bank’s operation in the UK said, “To be ranked top for the second year running in an independent customer satisfaction survey is of course very important for a relationship bank like ours. We have been running the bank according to the same principles for the last 40 years and it appears that our decentralised and customer orientated model is more appreciated now than ever. The fact that we don’t have sales targets or bonus schemes allows us to focus on what really makes a service organisation like ourselves successful in the long run, customer satisfaction.

“We believe in growing our business in a safe and considered way with the emphasis on a very personal relationship with individuals and businesses,” he said.

“The fact that we’re a large Swedish bank with stable finances and a good credit rating by international rating agencies also gives comfort to our customers. The leading financial newspaper in Sweden, Daggens Industri, recently ran an article describing Handelsbanken as the “Safest bank in the world”.

Handelsbanken first came to the UK more than 25 years ago to cater for Nordic businesses and their British subsidiaries, but quickly realised the potential to provide universal banking services locally; the branch network that has followed is one of the most successful branch banking operations set up outside of the high street banks.