We operate a simple, traditional banking model where we take in savings from organisations and lend funds to small and medium businesses. We don’t invest in areas such as the stock market and the majority of the cash that we hold over and above what we lend is held with the Bank of England.
In terms of who we lend to, our focus is on ensuring we are lending to established, financially stable, good quality businesses based in the UK. We do not lend to high risk businesses, nor to those involved in the arms industry or other industry sectors which do not meet our traditional lending criteria. Our typical lending is to businesses in our key regions, where we have Business Development Managers on the ground that know those areas. We lend to commercial owner occupiers in sectors such as manufacturing and also to residential and commercial property investors. We also offer Asset Finance secured on items critical to the business operation such as plant machinery.
Our owners, a Cambridge University College and a Local Government, do have a prudent approach to any risk which includes reputational risk arising from any organisation we lend to.