UK bank to target small businesses

A MAJOR UK banking group is to target small businesses through a newly established corporate finance operation in Dublin.

Close Brothers has been offering invoice finance in the Irish market since 2007, and has now extended its offering to encompass asset finance for small and medium-sized enterprises, as well as large businesses.

“The Irish market not only offers us a great opportunity to expand our business portfolio, but importantly it could benefit from new flexible funding options, particularly in these tough trading conditions,” said Harry Parkinson, managing director at Close Brothers Commercial Finance (Ireland).

He said the increased demand for asset finance had valued the industry at more than €3 billion.

It was, he said, important that businesses had ready access to finance for several reasons, not the least of which was to fund growth opportunities. There had been much rhetoric in this regard, he said, but added that his firm was coming to the market with genuine substance.

Close Brothers regional sales director Adrian Madden, who will lead day-to-day operations, said that without access to finance, firms could not make “crucial” technology, machinery and transport investments.

Asset finance involves the use of credit or leasing facilities to finance the purchase of assets such as plant and machinery, construction equipment and vehicles.

“Our team of finance specialists are well equipped to support the funding challenges customers are experiencing from the legacy of the Irish banking crisis,” Mr Madden added. Getting businesses going again and boosting employment and GDP were at the core of what the Government was trying to do, but firms needed access to finance, Mr Madden said.

Close Brothers now employs 12 staff at its Dublin office, and said it plans to grow its operations significantly in 2012.

The Close Brothers group operates through three divisions – banking, securities and asset management – and is a constituent of the FTSE 250. It employs more than 2,500 people, mostly in the UK.