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SUPPORT FOR BUSINESS CUSTOMERS KEY TO SUCCESS

• £2.1 billion of new lending to business customers in just six months

• Consistent support and real choice for Scottish businesses

• Pro-business initiatives supporting commercial growth

Clydesdale Bank has underlined its commitment to UK corporates by advancing £2.1 billion of new lending to business customers in just six months.* And despite subdued demand for credit in the market, that's a 62% increase on the same period last year.

Consistent support for strong trading businesses, the provision of real choice in the market and a range of business-friendly initiatives have contributed to the Bank remaining firmly on-track to deliver its promise of £10 billion of new lending to UK business and mortgage customers by October 2011. Overall the Bank has advanced £8 billion of new lending in the last 18 months – a strong illustration of its commitment to growth.

Business lending has been boosted by the Bank’s Investing for Growth initiative, launched last spring across its 73-strong network of Financial Solutions Centres (FSCs), 15 of which are in Scotland including Glasgow, Edinburgh, Aberdeen, Stirling, Ayr and Dunfermline, and which is designed to help successful businesses grow and develop.

Lending highlights in the past six months include a new funding £4.5 million package for Scotland’s leading coatings manufacturer, £3 million backing for a Glasgow printing firm and £4.9 million support for an acquisition by one of the UK’s major bingo club operators.

Scott McKerracher, Regional Director for Clydesdale Bank in Scotland, said the level of lending is a clear indication of the Bank’s commitment to UK businesses:

“Clydesdale Bank has continued to focus on supporting customers in these uncertain times. We’ve listened carefully to businesses, from SMEs through to UK corporates, and have consistently presented a level of support and dedication which is much needed by UK companies.

“Despite the subdued market demand for credit, we have continued to offer genuine financial choice in the market. This, coupled with the attraction of the Banks’ innovative integrated Financial Solutions (iFS) approach, has resulted in an up tick in new business customers switching to Clydesdale Bank in the past six months.

“We have a strong appetite for quality trading businesses across all sectors. There’s no doubt that the consistent and prudent iFS strategy has been instrumental in our ability to bring new business on board and remains a key differentiation for us within the sector.”

The Investing for Growth support package offers both new and existing business customers a dedicated planning service and a more flexible approach to lending. Loan repayment holidays, interest-only repayments and extended loan and credit facilities are just some of the flexible support options available under the Investing for Growth initiative which also includes a dedicated financial planning service.

And earlier this year, the Bank expanded its small business support network with increased high street presence, expanded 24-hour telephone and online services, and the appointment of more than 100 small business managers across the UK.

Examples of Scottish businesses which have taken advantage of new lending include:

• John Watson & Company: Clydesdale Bank agreed a £3 million funding package with printing firm John Watson & Company. The deal will help fund ambitious expansion plans including the installation of a state-of-the-art label press at its Glasgow city centre premises.

• Spencer Coatings: The Aberdeen-based coatings manufacturer received £4.5 million to support planned growth in overseas markets including the potential acquisition of a China-based specialist manufacturer of pipeline coatings.

• Fraser Capital Management: Lanarkshire-based Fraser Capital secured tailored loans worth £4.9 million from Clydesdale Bank to help fund the expansion of its Club 3000 bingo chain. The company has acquired seven additional outlets from North of England-based Buckingham Bingo. The acquisition will help to boost the company’s turnover over the next 12 months from its existing £5 million to around £20 million.

• Glasgow Centre for Reproductive Medicine (GCRM): A £1 million funding package will enable Scotland’s leading independent IVF fertility clinic to purchase the upper floor of its existing premises, doubling the clinic’s size from 4000 to 8000 square feet.

• RT Stuart: The Fife-based firm currently operates 16 retail outlets and is now looking to expand into the wholesale market by supplying bakery and butchery products to small-scale, private supermarkets with the support of a £1 million funding package.

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