The Cumberland’s new lending triples for hospitality sector throughout 2022
The Cumberland Building Society has announced today that its new lending to the hospitality industry increased substantially during 2022.
Throughout 2022 the Carlisle-based building society increased its advances by 277%, delivering £99.62m, when compared to the £26.4m delivered in 2021.
Coinciding with the increase in new lending, The Cumberland’s average loan advance increased also, rising from £375,000 to £900,000, reflecting the size and quality of businesses seeking funding from the society.
The Cumberland believes the uptake in new lending is a direct result of its new relationship manager model which was introduced in October 2021 and has been well received by customers who value strong relationships and exceptional service.
Throughout 2022, The Cumberland supported a range of different types of hospitality businesses across the UK including a multi-million pound finance package to secure the purchase of a unique and award-winning self-catering escape in North Devon, a £3.4m investment in a luxury Scottish castle renowned for hosting exclusive weddings and a six-figure investment in a luxury hotel rebrand and refurbishment project in Oban, Scotland.
Funding throughout 2022 was provided for a variety of requirements including the support of purchases and refinance for new customers, as well as additional funding for existing customers.
While many banks in the sector have moved to centralise their operations by removing a relationship-based model, The Cumberland has focused its outputs in the opposite direction.
The Cumberland’s approach brings a human element so customers have direct access with their relationship manager and an associate so they can contact someone who understands their business whenever their need arises.
As a result, The Cumberland’s model significantly reduces the stress and hassle of new lending, an approach which has led to a rise in hospitality businesses enquiring about refinancing existing loans with the society.
As demand for its services has grown alongside the increase in average loan amounts, The Cumberland has expanded its team to meet demand.
The Cumberland is a specialist lender to the hospitality sector across the country, with its customers operating hotels, guest houses, holiday lets and self-catering accommodation, most of which are owner-managed businesses and small, often family-run, chains.
With the hospitality sector facing challenges ahead including a recession, increases in costs and energy bills, as well as higher interest rates, The Cumberland will be on hand to support businesses going forward.
Grant Seaton, senior commercial manager at The Cumberland, said: “2022 has been a really strong year and it’s positive to see new lending increase.
“We’re delighted to help and support our customers and believe our relationship manager approach is crucial to empowering us to do this. Rather than getting a host of automated, digital, hoops to jump through, our customers know they can pick up the phone and speak directly to an expert. With many challenges on the horizon, this approach will be vital.
“As a responsible lender, we scrutinise loan applications to ensure that the borrower can cope if they hit headwinds. If a business does get into difficulty, we pass them to a customer support team that can support them to get back on track or exit in the right way.”
“Our message to hospitality businesses – whether they’re looking to fund a purchase or refinance an existing loan – is come and talk to us.”
