Keeping pace with economic growth

Martyn Kendrick, SME Area Director, in the North West, Lloyds Bank Commercial Banking, discusses the regional economic picture.

Business activity growth in the North West hit a six-month high in March, according to the latest Lloyds Bank PMI report*, with marked increases also seen in new work and a solid rise in employment.

The constantly changing skylines of cities across the region also demonstrate the recovery of the property and construction sectors, including the Liverpool Waters developments, the growth of Media City and numerous commercial and residential projects around Manchester.

With confidence at a high among ambitious North West businesses, it is crucial that property investors and developers looking to expand have a viable business plan. It will help to guide their growth and explore the options available when investing in new staff or materials to support increased business activity. This will help them to plan for, and eliminate, any foreseeable problems that may arise.

Firms can seek guidance from their Relationship Manager who will review their business plan and discuss options that may support their plans for growth.

Lending a hand

There’s a wide range of support available to property businesses looking to invest in growth: financial support in the form of both commercial lending and grants, or guidance from business support organisations such as the Chambers of Commerce, or specialist bodies such as UK Trade & Investment for investors and developers exploring exporting opportunities.

Initiatives and further support

There are plenty of organisations keen to help companies across the region, and business mentoring is available through the Business Task Force initiative, a scheme set up by banks and the British Banking Association to help the economy return to sustainable growth. It’s a great way to network and gain invaluable advice and guidance.

With interest rates predicted to rise next year ** it is also important that property investors and developers plan ahead and put facilities in place to protect themselves against rate rises, as well as giving them the ability to capitalise on expansion opportunities when they arise.

All lending is subject to status

*Lloyds Bank North West PMI -The report features original survey data collected in March 2015
**http://www.telegraph.co.uk/finance/bank-of-england/11601269/Interest-rates-set-to-rise-next-year-as-Bank-of-England-cuts-growth-forecasts.html