Analysis(1) of industry data by Cambridge & Counties bank, which launched in June this year, targeting established small to medium sized enterprises (SMEs) in Cambridgeshire, Leicestershire and Northamptonshire, reveals that there are around 85,000 businesses in these counties.
Gary Wilkinson, Chief Executive, Cambridge & Counties Bank said: "Cambridgeshire, Leicestershire and Northamptonshire are successful hubs for businesses, and many are leaders in their industries from a UK, and in some cases, global basis. A number of these successful businesses are looking to raise capital, but it has become harder to raise funds from the big banks. Indeed, we estimate that local businesses could have been turned down for as much as £103 million in loan and overdraft applications during the second half of 2011(2). This helps explain why our research shows that nationally, 47% of businesses believe that their relationship with their main business bank is only average or bad."(3)
Cambridge & Counties Bank provide SMEs with loans secured against commercial property as well as a highly competitive deposit account. In addition to this, it also offers secured pension scheme lending, and has plans to launch professional firm financing, as well as other competitive savings accounts into both the retail and non-retail sectors.
In terms of the number of businesses in each county, there are around 28,000 in Cambridgeshire, 27,000 in Leicestershire and 29,000 in Northamptonshire.
On a sector basis, the five biggest sectors in Cambridgeshire, Leicestershire and Northamptonshire are Professional, scientific and technical; construction; retail; production; and business administration and support services.
Cambridge & Counties Bank has a unique structure being jointly owned by Cambridgeshire Local Government Pension Fund and Trinity Hall, a College of the University of Cambridge. They each own 50% of the bank, which has a strong management team led by chief executive Gary Wilkinson who has held a number of senior roles in the banking and building society sectors.
The bank places a significant focus on developing a partnership type relationship with our clients through being easy to do business with and by focusing on plain English and transparency.
Cambridge & Counties Bank uses a local personalised relationship approach consisting of business development managers focusing primarily on its heartland regions of Cambridgeshire, Northamptonshire and Leicestershire, coupled with a national broker coverage model. This will allow balanced growth across geographies, market sectors and property types, avoiding inappropriate concentration risk.
Notes:
(1) Based on analysis of ONS data.
(2) Based on analysis of British Bankers Association data, and ONS figures.
(3) 303 SMEs were interviewed by Opinium Research between 17th and 24th May 2012.
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For further information please contact:
Citigate Dewe Rogerson (for Cambridge & Counties Bank)
Jamie Brownlee (0207 282 2858) / Patrick Evans (0207 282 2913)
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Research identifies around 85,000 heartland businesses
9 August 2012
Cambridge & Counties Bank - the new bank specialising in lending to SMEs - estimates that businesses in Cambridgeshire, Leicestershire and Northamptonshire could have had combined overdraft and loan applications worth as much as £103 million rejected during the second half of 2011.