New Cambridge & Counties Bank Targets Small Businesses
A new bank focused on helping small and medium-sized enterprises (SMEs) launches today. The Cambridge & Counties Bank will be providing UK small businesses with loans secured against property, a secured pension lending scheme and a competitive deposit account. Future finance plans include professional firm financing and savings accounts for both retail and non-retail businesses.
At a time when many SMEs say they are finding it difficult to secure finance, Cambridge & Counties Bank backs up this premise with an analysis of industry data showing that over 60,000 business loans and business overdraft applications were rejected last year, worth an estimated £3 billion to the country’s SMEs.
Gary Wilkinson, the new Cambridge & Counties Bank CEO said:
“We have been able to build a very strong and experienced management team, and launch at a time when many robust SMEs are finding it difficult to secure finance. There is also a real need for increased competition in the banking sector.”
Research from C&CB reveals that 47% of businesses believe that their relationship with their business bank ranks only between bad and average. Taking this into account, Wilkinson says that the new business bank is determined to change the staus quo with an approach going back to the basis of it having a more personalised relationship with SMEs:
“By placing 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, we hope to have a significant impact on our markets.”
Whilst Cambridge & Counties Bank will be focusing on prividing finance for businesses in Cambridgeshire, Leicestershire and Northamptonshire, there will be a national brokerage model. In addition, the bank hopes to secure new business through recommendations from intermediaries, specialist finance brokers and business transfer agents.
Commenting on the launch of Cambridge & Counties Bank, Professor Merlin Strone, Head of Research at The Customer Framework said:
“The launch of Cambridge & Counties Bank is great news for SMEs. Access to funding for businesses is tight and if the economy continues to struggle as many predict, banks may become even more less willing to lend.”
“If we are going to secure greater lending for businesses and help kick-start the economy, we need more new banks that don’t have a back book of loans, many of them poorly performing, hindering their ability and willingness to lend.”
For further information on Cambridge & Counties Bank, visit its website at ccbank.co.uk