Lloyds TSB named most supportive bank for UK businesses
Richard Holden - Head of Lloyds TSB Franchise Department
Lloyds TSB has been named Bank of the Year for the fifth year running. The award has been given in the recognition of the support it has given to its business customers through the current downturn.
Richard Holden is the head of Lloyd’s TSB franchise department. Below is an outline, provided by Richard, of why the bank wants to work with the franchise communitiy in the UK.
What is a franchise? In a nutshell, it is the granting of a licence by a business owner to another individual, which allows them to develop their own business using the trademark, name, know-how and business systems of the franchisor. There are a wide variety of franchise opportunities available in the UK across a broad range of industry sectors. Generally most well-established franchise systems offer a tried and tested business model with initial training, ongoing support, brand recognition and the collective buying power benefits that a network of businesses can bring.
Franchising is widely regarded as a less risky way of setting up in business, but it’s worth noting that it will not suit everyone. Following a business system which may include restrictions on products, services and suppliers may be unattractive to some entrepreneurs who are looking for more independence. There are also limitations as to whom the business can be sold on to, as the franchisor will need to approve the buyer.
Franchises are not immune from reputational damage either. Neighbouring franchisees delivering poor service or indeed problems with the franchisor can all pose challenges. Anyone considering franchising should thoroughly research the options available to them before making any commitment.
When considering whether franchising is the right option for you, one of the first decisions you need to make is what type of business you have an aptitude for – and what would you enjoy. Running your own business takes a lot of hard work, possibly long hours and a great deal of self-motivation. You must be prepared to follow the franchisor’s business system and accept their terms. It almost goes without saying that you should only consider investment opportunities that are within your budget.
Finally, don’t be pressurised into signing an agreement before you are ready to do so. Getting involved in a franchise is a big decision and it’s vital you understand exactly what you are getting into. Find lawyer who understands franchising and ask them to take you through the franchise agreement step by step, so you understand what it means. The British Franchise Association (bfa) provides a list of affiliated lawyers on its website www.thebfa.org as well as listings of franchisors that are members of the Association who comply with a Code of Ethics. Lloyds TSB has produced a helpful guide to support your research and provides a list of 35 key questions you should ask a franchisor. A free copy can be obtained through the bank’s Franchise Unit by using the contact form below.
Latest industry statistics show that franchising contributes £10.8 billion to the UK economy. The robust health of the sector is further demonstrated by the very low levels of commercial failures and the fact that nine out of ten franchisees say that their business is profitable. Failure amongst business starts ups is reported to be significantly higher and consequently franchise focused banks such as Lloyds TSB offer preferential banking services and finance terms to franchisees.
Top Tips
- Thorough research of a franchise opportunity is vital when making probably one of the most important decisions in your life.
- Attend one of the British Franchise Association franchisee seminar days which provide an unbiased view of the benefits and pitfalls of investing in a franchise.
- Get the Lloyds TSB guide ‘Supporting your franchise business’ which contains 35 key questions to assist you with your research.
- Be prepared to walk away if the franchisor just seems interested in taking your investment and does not ask you searching questions about your own skills, attributes and motives for setting up as a franchisee.
- The franchise agreement should be fully explained to you and checked by a British Franchise Association affiliated lawyer before signing.
Franchise press release from Lloyds TSB bank
Richard Holden, Manager of Lloyd’s TSB franchise section has submitted the following press release to Select Your Franchise. Lloyd’s TSB has a dedicated franchise section. The goal of the franchise managers is to help new and existing franchise owners and business developers to grow their franchise opportunities in the UK.
LLOYDS TSB NAMED MOST SUPPORTIVE BANK FOR UK BUSINESSES
Bank’s support for customers during the downturn leads to a fifth year of success as Bank of the Year at Real FD/ CBI FDs‘ Excellence Awards 2009
Lloyds TSB has been named ‘Bank of the Year’ for the fifth year running, in recognition of the support it has given business customers through the current downturn.
The award, voted for by hundreds of the UK’s finance directors, recognises the services Lloyds TSB has provided to its Commercial and Corporate customers over the past year, and its wider ‘relationship’ based approach to banking, which means customers are helped throughout the changing economic climate.
The voting process for the Excellence Awards is the largest satisfaction survey of its kind, with hundreds of finance directors rating their experiences with companies that provide services to UK businesses. As well as banks, the awards focus on the service provided by auditors, professional advisors and government departments.
In the banking satisfaction category, Finance Directors were asked to focus on both the quality of service provided by their main bank and the degree to which their relationship manager understood their business. Banks were rated for the support provided, their approach to lending, and the help they would be able to provide over the coming year. The voters were also asked whether they would recommend their current bank.
Diana Brightmore-Armour, Managing Director Lloyds TSB Corporate Banking and John Maltby, Managing Director, Lloyds TSB Commercial, collected the award from David Canavan, Chief Financial Officer, Portman Travel Group, at the event held last night (13 May) at The Marriott London, Grosvenor Square.
David Godfrey, Divisional Risk Officer and Interim Wholesale Group Executive Director said: “The past few months have been some of the most challenging any business will witness. It is during times like these that firms of all shapes and sizes are most in need of help and guidance – so we have pulled out all the stops to provide the support they need.
“Our aim is to stand by our business customers through the good times and the bad. And although the real test of this approach is in seeing businesses survive and thrive in the longer term, awards like this are a clear signal that our approach is succeeding.
“Winning this award five years in a row demonstrates that we have been consistent in the service we have provided our customers in different economic climates. Across our Commercial and Corporate Markets businesses we have used our expertise in the sectors, regions and specialised areas of finance, to ensure that our customers endure the downturn and that they are ready to thrive in the upturn when it comes.”
In winning the Bank of the Year category, Lloyds TSB beat a shortlist of competitor banks which included Barclays, HSBC, Royal Bank of Scotland and NatWest.
Lloyds TSB Commercial provides dedicated banking services and products for customers with an annual turnover of up to £15m.
Lloyds TSB Corporate Markets provides comprehensive expert financial services to businesses with turnovers above £15 million – ranging from privately-owned firms to multinational corporations and financial institutions.
The wide range of services and innovative solutions we can deliver includes: dedicated relationship banking; capital market funding; debt and equity finance; treasury and risk management services; structured finance solutions; asset finance; leasing; company registration and employee share schemes; competitive e-trading facilities; import and export trade finance; tailored cash management solutions; and structured credit investments and securitisation facilities.
