2010 FD of the Year Awards: Tight credit has put FDs in front line
TIGHTER credit conditions have tested the relationship between banks and companies with finance directors in the front line, according a leading banker.
Neil Williams, regional director of corporate banking for Santander, said fewer banks in the marketplace and constraints on lending had led to new pressures on FDs.
Santander is a co-sponsor of the 2010 Yorkshire Finance Director of the Year awards with recruitment consultants Sewell Moorhouse, law firm Hammonds and financial services provider Ernst & Young. TheBusinessDesk.com is the media partner for the event.
Mr Williams leads a team of 27 working from offices in Hull, Sheffield or Leeds and focusing on firms ranging from those with turnovers of more than £1m to FTSE 250 companies.
He said: “We are very much a relationship bank and one of the reasons we have been been so successful is that we never lose sight of the customer and understands the customer has a choice to go with someone else.
“Previously banks have felt they had a relationship with customers, or customers felt they had a strong relationship with the bank. That’s easy when things are going really well but when you come into a recession that is when relationship bamking is tested.
“Banks face a choice to continue to support their clients or look to generate more income that they might have done.”
The increased focus on the relationship between companies and their financial backers has put new pressures on finance directors.
Mr Williams said: “A number of other banks have left the marketplace or not lending as much as they were previously. As a result FDs have had to be a bit better in terms of negotiation with banks because the volume of banks or the volume of money they are lending makes it harder to get the financing they need.
“The view for a number of FDs is they would rather use their own money and take a more prudent approach, to batten down the hatches and make sure the business is resilient.
“The real key for FDs is being able to recognise opportunities because you could cut costs so far that when opportunities do come around the business is not in good enough shape to grasp them.”
Awards will be presented in categories including Best Finance Director of a plc; Best Finance Director of a Ltd Company; Best Finance Director of an SME (up to £15m turnover); and Young Finance Director of the Year (up to 40 years of age).
There will also be Outstanding Achievement and Best Finance Director Private Equity awards.
For further information about the awards email Lucinda Wood at lucinda.wood@sewellm.co.uk.
