Cambridge & Counties Bank, which launched in June last year with the specific aim of lending to small to medium sized enterprises (SMEs), today (7 March) announces that the amount of lending it was originally looking to complete in nearly four years is now likely to be achieved in just over two.
To date, Cambridge & Counties Bank has completed more than 50 loans totalling £20million and has approved a further 65 cases worth around £30million.
Gary Wilkinson, Chief Executive at Cambridge & Counties Bank, said: “We are delighted with the amount of support we have been able to provide SMEs in a relatively short space of time.
"This is a strong endorsement of the success of our business model and a reflection of the scale of demand among high quality SMEs whose growth aspirations have been frustrated by a lack of access to finance.
“Ahead of our launch we had initially thought that our clients would primarily be SMEs looking to grow with new loans. However, we have been surprised by the amount of interest from well-managed businesses approaching the end of their existing loan period with their bank, but that have been turned down for replacement finance.”
In less than a year, Cambridge & Counties Bank has helped a wide range of businesses to fulfil their growth ambitions.
A key difference between Cambridge & Counties Bank and the bigger banks is its individually tailored manual underwriting process. This enables the bank to review customers on a case by case basis, rather than through automated credit scoring.
Gary Wilkinson: “SMEs account for the vast majority of UK businesses and the UK’s economic recovery relies heavily on the ability of these firms to grow. From a standing start we are very pleased to be on track to meet our four-year lending targets in half that time and through our growing deposit account business are well placed to support many more firms achieve their ambitions.”
Lending is funded by the Bank’s 30-day notice business deposit accounts, which have proved attractive to businesses looking to generate a decent return for their money. Indeed, the Bank has also received excellent feedback from its customers by providing simple, value-for-money accounts without complex product features that could catch customers out. In just eight months, the Bank has opened 500 new deposit accounts.
Cambridge & Counties Bank offers loans to small and medium businesses and real estate investors secured on freehold and long leasehold property with loans available from £50,000. Terms of up to 25 years can be agreed and each application is considered on its merits.