THE Cumberland Building Society has revealed that its lending to the hospitality sector has tripled following a sharp rise in new loans.
Since the start of the financial year in April, it has approved 83 advances with value being up 205 per cent on the same period last year.
Funding has been provided for a variety of requirements including the support of purchases and refinance for new customers, as well as additional funding for existing customers.
Grant Seaton, senior commercial manager at the Cumberland, believes the society is reaping the benefits of its relationship manager structure, introduced in October last year, which has been a big hit with business customers.
“We’ve gone the opposite way from most of the banks, which have centralised a variety of operations removing the relationship model that many customers look for.
“The size of our average loan advance has increased from £375,000 to £900,000 and that reflects the types of businesses coming to us.
“We’ve strengthened our team with some very experienced people and that’s enabled us to consider larger deals,” he said.
The Cumberland, which is based in Carlisle, has long been a specialist lender to the hospitality sector not only in Cumbria but, increasingly, across the country. Its customers operate hotels, guest houses and self-catering accommodation. Most are owner-managed businesses and small, often family-run, chains.
READ MORE: ‘I couldn’t get near him!’ – Cumbrian star recalls the day he faced Lionel Messi
