These moves come hot on the heels of the Bank's recent announcement to guarantee small business customers' overdraft agreements and pricing until at least the end of 2009.
'Business Lifeline' is a specialist helpline we have set up to provide advice and support to small business customers as we work together through the current downturn. The free phone service will be manned by a dedicated team of specialist business bankers who are experienced in working closely with all types of enterprises. They will work in conjunction with the Bank's regional managers and have local business knowledge. The team will be on hand to give small business customers the opportunity to discuss any specific issues they may have, whether these relate to the availability of finance, pricing, or the general day-to day transactional matters that are so important to SMEs.
In addition to Business Lifeline, NatWest and RBS are also currently sending all their customers a practical guide called 'Trading though the Economic Downturn'. The guide contains practical and impartial advice on issues such as managing cash flow, dealing with bad debts and managing risk. The guide is also available online and in all NatWest and RBS branches across the country.
As well as our existing programme of customer events offering help and guidance to small businesses, the Bank is also launching a new round of specialist seminars across the country to help customers overcome the challenges of trading in an economic downturn.
Commenting on these additional moves, Peter Ibbetson, Chairman of Small Business for RBS and NatWest, said: "With over a quarter of the country's small businesses banking with us, we genuinely understand the challenges they currently face and we are responding with measures we believe will offer further support and reassurance at a time when they need it most.
"In particular, the Bank recognises that occasionally our small business customers may want further help or guidance on a particular banking matter as they work to trade through the current economic conditions. We have therefore responded to customers' needs by setting up Business Lifeline, which will be staffed by specialist business bankers who have gained their experience by working with all types of businesses across all parts of the country, and will be on hand to address any concerns our SMEs may have."
Top five tips for trading through the economic downturn:
Cash is king - keep control of your cashflow by having the right management information and systems in place. They'll allow you to act on warning signs before they become a problem. Remember, Invoice Finance may be an answer to working capital problems
Talk to us - there is a world of support available to small businesses. We've got an unrivalled 2,300 locally based business managers offering customers free face to face advice. We're also currently putting in place an experienced team of 500 to offer more intensive support to businesses facing heightened financial pressures.
Get paid - you must set clear terms of business and collect debts promptly. If you're worried about being paid, then consider stage payments or even cash on delivery to reduce your risk of bad debts
Look at your costs - as sales fall, avoid taking on unprofitable business. Cutting your costs can provide you with the scope to reduce prices. If you take on big orders, you could be overlooking your smaller more profitable customers
Spread the risk - don't just rely on one or two customers. In an economic downturn, all it takes is for one of your customers to move to a cheaper supplier and your business is no longer viable. In past recessions, those that suffered were those that failed to go out and get new customers and those that succeeded were the ones that did.
