Make your money work harder

San Midha, Managing Director of Products and Banking Services at Santander Corporate Banking, outlines the different options for businesses with funds available to deposit.

Q: What are the drivers influencing businesses in where they deposit funds?

A: It’s no secret that the market is currently pretty volatile, which means that, for many businesses with surplus funds, security is a top priority, ahead of yield and liquidity. This can mean security in terms of seeking out a Bank with a reliable reputation and robust systems, and Santander UK, with its strong credentials, can be regarded as fulfilling this expectation. Over the past few months, however, businesses have been starting to look at yield again – making the most of their deposits and being more willing to balance a certain level of risk with ongoing liquidity.

Q: What questions do you ask a business looking to deposit?

A: A typical client meeting will involve the Santander Relationship Director and Deposits Partner. We would look to gain as much insight as possible into the client's business. Typical areas of discussion would include cash flow requirements; liquidity tools available – for example overdrafts; any debt and planned repayment or conditions; details of counterparty risk assessment procedures and parameters - including, for example, ratings, CDS spreads, and various accounting ratios; and ‘soft’ factors, such as the general perception of the marketplace in the short to medium term. We would also consider specific service requirements or operational needs. Our relationship team will then collaborate to produce a bespoke proposition.

Q: Which products does Santander offer for business deposits?

A: Santander is able to service a broad customer base with a wide variety of products designed to suit the requirements of companies from a small family run business to a large, sophisticated institution. These products offer a spectrum of interest rates and fixed terms, and some allow a customer to break these terms. These include:

• No-notice
• Notice
• Term
• Breakable term
• Structured

We also have products available across multiple currencies.

Q: What other reassurance can Santander offer its business clients?

A: Santander UK is a self sufficient subsidiary of Banco Santander, with 85% of the assets on our balance sheet in the UK, and with limited exposure to the Eurozone countries. We hold a strong liquidity and funding position, with around 75% of commercial and retail loans funded by commercial and retail deposits. This is all reflected by our credit ratings, which are amongst the best of all UK banks.

Want to find out more?

Santander is always happy to hear from businesses, to give advice and talk through finance options. If you want to find out more about deposit accounts, or any other services we offer, contact your local Relationship Director.