Cash-rich entrepreneurs now seeing opportunities

Sep 17 2008 by Peter McCusker, The Journal

DESPITE recent surveys which show deals in the North East at their lowest level for 15 years, there is still some activity in the marketplace.

Cash-rich entrepreneurs are seeing opportunities that would not have been available at the right price this time last year, with one experienced corporate lawyer telling Dealmakers that none of the eight deals he had on his desk was being supported by any of the traditional lenders – for the first time he could recall.

The Royal Bank of Scotland has been involved in a number of recent deals as reported in nebusiness.co.uk and says it is well-placed to support further activity as the right opportunities come along.

Earlier this year it moved into new premises on Newcastle’s Quayside and has expanded its commercial team by 50% to 16 in the last year.

Matt Lowe, RBS regional director, corporate banking, said: "We firmly believe in getting to know our clients and getting to fully understand the needs of their business.

"By doing so it becomes easier to support them. Some of our clients comment on the number of questions we ask, but this is all part of the process we undertake which we believe can help them visualise and verbalise what its is that they want.

"We firmly belive in this customer-focused approach and all of our new staff are in front-office roles."

RBS says it has secured 50 new clients and has seen a 26% rise in the funding made available to clients in the first seven months of 2008, compared to last year.

Mr Lowe added: "We still have an appetite for new business, whether it be for day-to-day banking, lending for investment or for acquisitions."

Earlier this year RBS provided a £19m war chest for publicly-listed company Opsec to help fund its ambitious expansion plans.

In recent weeks it funded Newcastle-based clothing company Rohni’s moved to new premises in Cramlington. David Gray, relationship manager, RBS commercial banking in Newcastle, said: "We are delighted to welcome Rohni’s as a new customer.

"The business is entering an exciting period and we look forward to supporting them with their growth aspirations and overseas trading."

It also provided £5.15m for Kent-based care home operator Doson to move into the North East with the purchase of three homes from the County Durham-based Autumn Care Group

Jillian Bailey, healthcare relationship manager at RBS, said: "RBS has a long and distinguished track record in its support to the healthcare sector in the UK.

"Its team of dedicated healthcare specialists immerse themselves in the sector and take time to understand customers’ financial needs inside out."