BUSINESS FINANCE & BANKING
Back to the future of bank funding By Brian Gillan, Head of Business Banking, First Trust Bank
B
ank funding is an essential ingredient necessary to underpin economic recovery in Northern Ireland, which is beginning to return to a new normal. I call it a new normal because there is no denying that like any other Northern Ireland business, we have had to review what we do and how we do it in the context of today’s economic realities. At the same time business customers still need funding to grow and rightly expect their financial partners to be in a position, when they need them, to support their business development plans. It’s all about confidence and trust in your bank; confidence for customers enables them to spend time searching out and planning for investment opportunities to grow and expand their businesses. We’re in it together like any successful partnership and First Trust Bank is determined to play its part in making it work. Increasing professionalism does mean due diligence requirements are higher, but access to competent Relationship Managers who know and want to understand your business sector and where you operate within it, results in the right decisions being made for both the customer and the Bank. As early signs of green shoots emerge in the
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Northern Ireland economy, First Trust Bank wants to have a central role in supporting local businesses grow and help deliver sustainable economic growth here. In support of that strategy, we have recently launched a new £50m Owner Managed Business Fund which compliments our existing Business Support Fund (operating since 2012). Together they are designed to provide viable Northern Ireland businesses with funding at affordable rates over longer committed contract terms, allowing them to plan for and invest in new business opportunities. While the Business Support Fund focuses on loans below £250,000, the new Owner Managed Business Fund is targeting larger businesses which need to borrow above that level. The scope for the Owner Managed Business Fund has been widened to include new loan, overdraft, invoice discounting and asset finance facilities. Whilst demand for funding over the past year has been slower than anticipated, we believe that trend is changing. We are encouraged by growing evidence that more companies are increasingly confident about their prospects and are bringing forward new opportunities to develop and expand their businesses. With these
two business fund offerings First Trust Bank can provide competitively priced finance to viable businesses at a reduced interest rate over longer committed contract terms. This is five years in respect of the Owner Managed Business Fund and up to 15 years in the case of the Business Support Fund. Our Owner Managed Business Fund also has the added incentive of having no arrangement fee (usually 1%) if the facility is agreed by 31 December 2013 and drawn down within 60 days of the facility letter date. We have dedicated Relationship Managers based in our Business Banking team in Belfast who have a range of sectoral specialisms, in addition to branch based Relationship Managers who all offer customers an accessible, competent and professional resource which is open for and wants to do business. First Trust Bank has a proud heritage, closely associated with supporting family businesses across a broad range of industries. Recognising their role as the engine of the local economy and as one of their key partners, we have deliberately tailored our Business Support and Owner Managed Business Funds to focus our relationship and credit delivery processes on them. Finally, more important than what I say, is what our customers say about First Trust Bank. With the help of our Owner Managed Business Fund we supported Northern Ireland’s largest independent tyre retailer, Modern Tyres, a long-standing customer of First Trust Bank, in its recent £1m purchase of eleven outlets from the Republic of Ireland-based Hanover Group which was in administration, a move which has resulted in saving 30 jobs. Jimmy Byrne, the company’s Managing Director said: “We have always been an ambitious organisation and have strengthened our offering over the years, seeking the right opportunities to expand and widen our reach. Throughout this time, we have enjoyed a strong working relationship with First Trust Bank and are delighted that they have been able to support us at various stages along the road.” This is a perfect example of the type of strategically important business propositions that we are keen to support and we would encourage other businesses that are considering any investment, to speak with us about their future plans. Brian Gillan is Head of Business Banking, First Trust Bank and can be contacted on Tel: 028 9047 9206 or email: brian.m.gillan@aib.ie