That, of course, is a matter for them to take up with their individual banks, but exploring the world of commerce has set me thinking and I have examined a number of opportunities that are available to businesses in Northern Ireland and in the UK via support networks and Corporate Finance Groups.  One such practice is Paradigm Niche Planning in Belfast, a home grown, family run business which is interested in you and the management of your affairs.  It has been successfully and sympathetically supporting the local business community for almost 30 years now.

I am dealing directly with Judith Totten, Senior Partner within Paradigmís Corporate Division. 

Judith what is your main day to day job in Paradigm and how does that affect our industry?

Im flattered by that statement Adrian but I wouldnít pretend to be in a position to materially affect any industry, least of all the Property industry and itís associated trades. However, what I endeavour to do every single day is to match client needs to appropriate solutions. Having worked for almost 20 years in Northern Bank , I received a very sound training in tailoring facilities to customer demands but the world within and beyond Banking has changed immeasurably in the last two years and solutions must now be based on a mix of options ñ from debt to equity to private investment and everything in between . I often describe my role as a Personal Shopper or a Dating Agency where I go to the UK and beyond and match deals to providers and introduce people who can support each other, beyond traditional lending vehicles.

Thank you that all seems very realistic and straightforward, so there are other methods whereby you can raise funds?  For instance, if a company which has a sound core business and strong Balance Sheet has had its facility restricted (thereby limiting its ability trade or expand) what opportunities are available out there?

If the business is prepared to keep an open mind and is prepared to look beyond the local providers, there is a wealth of knowledge and more importantly, willing investors and funders in GB and beyond. Dependent on the deal structure, there are various funds managed out of London for example, built on Middle Eastern / Canadian and Russian monies (as examples) which are actively seeking to buy off market land banks, part completed sites and both residential and commercial developments. They are looking for a discount of course but many of these consortia will consider JVs with the vendor, which can be attractive at the moment. Whilst Ireland as a whole is not generally a target market, for the right deal, many of these guys will engage. Beyond this, there are a myriad of options for trading businesses such as trade finance, stock finance, purchase order finance, working capital finance and much, much more plus access to a wider portfolio of private Banks, boutique Banks and hedge funds, pension funds and private investors. We can source equity partners and match specialist funds to specific projects ñ renewables, energy, commodities, hotel & leisure and so on. 

Whilst I realise that your company isnt the answer to all ills, nevertheless, do you believe that there is hope for the Northern Ireland Economy and in particular SMEs in the Northern Ireland construction world?

Of course I do Adrian, I am a glass half full person and I always believe that the sun will come up tomorrow  

The NI business community is resilient, resourceful, hardworking, driven and above all else, we are not ëquitters. There have been and sadly, will be, casualties, but in the main I believe that as the Banking industry recovers ñ and it will (we already see signs of some easing in credit policy locally) businesses will begin to grow again through acquisitions, mergers and JVs and they will bounce back as stronger entities. However, I do think that business owners will never again allow themselves to be wholly reliant on one provider. The days of staying with one institution for decades are probably over. But I see that as a positive evolution. A spread of risk and access to alternative options is good for us all and I hope that the traditional institutions will actively encourage specialist providers into the local market to complement mainstream offerings.

With particular reference to the construction industry, there is clearly an ongoing demand for affordable housing and first time buyer stock and as the mortgage market eases, this will then ëkick startí the whole property cycle again. However, I do not want to see the highly geared deals reappearing ever again as these flies in the face of all sound, commercial structures and is what got us into this mess in the first place. So the industry must accept that the days of 80% + development or structured finance are over. Or maybe I should say, we need to get back to basics a tired but still valid phrase.

Can I also say, that all businesses in all sectors need to apply that back to basicsí logic across their own management processes. We are seeing more business failures than ever before now due to poor cash management. Within Paradigm we have a Cash Flow Management team which is responsible for providing ëown brandí or ëwhite labelí cash flow management / credit control for a wide range of business types across the UK. Effectively our team will assess the internal systems and paper flow first, implement a cash management procedure and then, on an ongoing basis, manage those systems for a performance based fee. We currently manage businesses as diverse as architects, healthcare providers, magazines, printers, contract cleaners, facilities management, M&E providers, merchants / builder suppliers and a QS business. More importantly we have, on average, improved the debt turn and by default the cash flow within these businesses, by over 20 days  a sobering thought.

So you are saying that in todays world you can still use Back Office support for control of your Debtors  and that with proper support many SMEs could reduce their exposure to debt at this moment in time by using professional advice?

Absolutely Adrian. The sad thing is that sometimes pride gets in the way of this decision and we have currently three fairly sizeable businesses that availed of our Corporate Health Check option back in June / July. They paid for our advice, we carried out a detailed analysis of their businesses but due to pride, ego, pressure of time ñ who knows ñ they did not move forward with our recommendations. All three are now either in administration or under the care or Reporting Accountants. My advice? For what itís worth ñ do not underestimate the importance of cash. As our Senior Business Manager, Diane Woodside preaches to all her clients, ìA sale is a gift until it is paid for With 27 years experience in this field within Bank of Ireland, where she set up and ran the cash flow management function, Diane should not be ignored!

Thank you Judith for your comments.

In essence I have gone to someone who understands the banking industry having come from the world of banking and I have met a team who are at this moment in time a growth sector. They are assisting our industry when others have reduced assistance.  They are seeking out solutions.  Now they canít rescue or resolve everything, no-one can, however if you are in business out there and you are facing difficulty there are solutions.  The solutions aren't just simply within the traditional route of banking, they are outside of that and often at times they can free up capital and free you up to trade in a much more professional and managed way.  Food for thought in this environment, isn't it?