I’m currently producing a weekly round-up of UK commercial banking news for one of Britain’s challenger banks. At this time of economic uncertainty, as we look to an unknown future outside the EU, there’s more demand than ever for innovative but dependable business lending. So there’s always lots going on in the sector. Here are some extracts from my first commercial banking round-up of 2018. Hyperlinks will take you through to the relevant corporate websites.

UK commercial banking

Lloyds Bank finds confidence highest in North East

Lloyds Bank‘s latest Business in Britain report has some interesting findings. The January 2018 edition of the twice-yearly survey of over 1,500 firms shows that business confidence is highest in the North East of England, at 38%. Leigh Taylor, regional director for the North East at Lloyds Bank Commercial Banking, said: ‘It’s excellent to see that firms in the North East are the most confident in the UK, taking the challenges of today’s business climate in their stride.’

Across the UK as a whole, confidence remains fairly steady at 23% (compared with 24% last July). While this is a higher figure than the 12% recorded immediately after the Brexit referendum, it’s below the levels seen before the vote. But the net balance of firms expecting to increase their staff numbers has risen by one point to 9%, and the net balance predicting higher investment spending rose by five points to 13%. You can read the full findings here.

Santander’s funding boost for Bromsgrove firm

Santander Business Banking has provided £522,000 in funding to enable a Bromsgrove company to open new premises on a business park. Watertight Management, founded eight years ago, specialises in civil engineering and water management services. With 21 staff and 17 vehicles, and profits on the rise, the company wanted a new base at Saxon Business Park. Director Tom Collings said: ‘The new property will offer the right impression to the big blue-chip companies we work with and provide space for our increased numbers of staff.’ He was full of praise for the ‘fantastic’ team at Santander, to whom the firm is also switching its main banking.

HSBC loan supports Berkshire children’s home

A charity providing support for children and young adults with severe autism has used a £4.8m loan from HSBC, and over £1.5m raised from donors, to launch a new children’s home and learning hub on its site in Thatcham, Berkshire. Prior’s Court‘s new facility means that 13 more residential places can now be provided at the specialist school and training centre for young people aged 5-25 who are severely affected by autism. The bank loan was arranged by Garry Matthews, HSBC’s relationship director for corporate banking in the Thames Valley.

NatWest funding for removal and storage firm

Fox Moving & Storage, a family-run removal and storage business, has secured £1.5m of funding from NatWest to help buy its Stourbridge site in the West Midlands from its landlords. The company has been using the facility since 1980. Managing director Paul Fox explained that the move would enable the firm to continue growing both nationally and internationally from this key regional base. Fox has had a banking relationship with NatWest since 2010, since when the bank has provided commercial mortgages for four of the company’s seven locations.

Other business lending news …

Poundland loan reduces dependence on Steinhoff

The new year has begun with some good news for Poundland. Pepkor Europe, which owns Poundland in Europe, has secured a £180m loan from Davidson Kempner, the American investment firm. Andy Bond, chief executive of Pepkor Europe, said the money meant the division wouldn’t have to depend on financial support from Steinhoff, its owner. Steinhoff is currently being investigated by German authorities over an alleged £5.3bn accounting scandal. ‘Despite the ongoing issues faced by our parent company, we have been able to work quickly over Christmas to activate new sources of funding that will enable us to reassure suppliers, implement our investment plans and secure the future of [our] successful businesses,’ Bond said.

Scottish Microfinance Fund has lent £2m to SMEs

The availability of business finance is often a thorny issue for new firms. But in Scotland, a government-backed fund has been set up specifically to provide loans to SMEs that have been turned down by bigger lenders. The Scottish Microfinance Fund, run by DSL Business Finance, has a £6m pot to lend up to £25,000 to individual SMEs. It charges just 6 per cent interest a year, and there aren’t any admin fees to pay. Just over a year old, the fund has already lent a total of £2m to over 130 different firms – and in doing so, it’s helped to create more than 200 jobs. The SMF is backed by the Start Up Loans Company and the European Regional Development Fund.