What ’ s it like running a SME in the North of England - what are the most common challenges in business ?
Seneca has diversified into advising businesses who were mis-sold swaps , as well as developing a bridging finance operation for property developers . What do those developments tell you about the business and where things are going ?
Our ability to move successfully and at pace into new markets such as these reinforces the entrepreneurial spirit which exists within the team . We continuously review market developments and look for opportunities to grow our business - our bridging and banking businesses are good examples of moving into new markets when the time is right and having the belief in our own ability to make it work .
We entered the mis-sold Swaps market well before anyone really understood the extent of the mis-selling that had taken place and the damage that had been caused to many SMEs . We covered the ground quickly from the outset as we had a first mover advantage and that business has been very successful .
Equally we established our bridging finance business in response to demand for short term bridging finance from a number of local property developers - we quickly realised however that demand for bridging finance , delivered with the high service levels to which Seneca operate went well beyond the small number of local contacts that we serviced in the early days . We have subsequently scaled that business to broaden its lending capability and remain committed to growing that business given the scale of the opportunity which exists in that market . With retained earnings in excess of £ 2m in our bridging business alone we are well placed to be able to fund its future growth .
Thinking about the investors - what do they look for in their relationship with Seneca ?
This is probably best answered by our investors , but I hope that they look for an accessible , open and honest investment partner who acts with integrity and provides good returns on the investments they make with us .
In short , it ’ s a fantastic challenge ! The North of England is a great place to build a business such as ours . There is a very strong professional community in addition to high numbers of hugely talented entrepreneurs , who are growing their businesses and seeking the investment or advice that we can provide to help make their venture a success . As a people business however , the key challenge at Seneca , as for many other businesses , is continuing to build and develop our team in a way that will enable us to deliver on our ambitions for growth - our team is without doubt our most important asset and we are always looking to add talented individuals who will fit with the Seneca culture and help us deliver our strategy for growth .
How do you see the opportunities for funding businesses in the current climate ?
Good businesses , with strong and backable leaders and a clear vision will almost always get funding , whether from Seneca or an alternate source - they tend to find a way . If other lenders or investors pause for thought in this post Brexit cooling-off period then this can only help us in our objective of backing the strongest and most exciting businesses . The UK is the world ’ s 5th largest economy and has proved very resilient in recent years - there remain high numbers of businesses looking to take the next step on their journey - whether that is taking on investment to drive expansion or looking at an exit , Seneca are well placed to be able to provide the support these businesses need .
How do you think the result of the referendum to leave the EU will impact on the kind of businesses you deal with day to day ?
I would hope that it doesn ’ t change the type of businesses we are working with too much . If you look at the existing investment portfolio and corporate finance mandates underway as a proxy for the kind of businesses we like to work with , you will see that not many of them have been significantly impacted by the decision to leave the EU . There may well be some further bumps in the road in the short term , but I think the confidence amongst the entrepreneurs and business owners will quickly win through - these people are hard wired to create and grow businesses and that spirit is exactly what is needed , particularly at the moment . In a similar way we continue to grow the Seneca business and we are very much open for business - as you can sense , we are very optimistic about the future .
ONSIDE WINTER 2016 | 5