There is a big difference between saying you’re committed to a market and actually turning up.

Most of us have seen businesses announce ambitious plans for a particular region, only for attention to move somewhere else a few weeks later. The announcement is the easy part, but building lasting relationships takes time and, from what I’ve seen, that’s particularly true in Scotland.

Commercial lending isn’t any different. It can be tempting to think that if your lending policy covers Scotland, you’ve instantly got a Scottish proposition. I don’t think that’s how the market really sees it. From speaking to brokers and customers alike, it’s quite clear they can tell the difference between a lender that’s available in Scotland and one that’s genuinely investing there.

That’s why, for us, building our presence isn’t simply about writing more business north of the border. We’ve been clear that we want to double our Scottish loan book over the coming years, but I actually think it’s important to explain what sits behind that ambition. It isn’t about setting a target and assuming the lending will follow, it’s about making sure we’re building the capability, expertise and relationships that allow us to grow in the right way.

Our recent appointment of Harper Macleod as our primary Scottish legal adviser reflects that way of thinking. If we’re serious about doubling our lending in Scotland, we have to make those investments before the additional lending arrives, not afterwards. For me, that’s simply common sense. You can’t expect brokers and borrowers to have faith in your commitment if you haven’t first invested in the expertise that supports it.

What has been interesting is what happened after we made this announcement. We saw brokers talking publicly about the opportunities they felt were being overlooked in Scotland and what lenders needed to do differently. Quite naturally, that opened conversations with people we hadn’t worked with before because they could see we’d already started investing, rather than simply talking about our ambitions.

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I actually think that’s an important distinction. Relationships still sit at the heart of commercial lending, and they’re built over time. Brokers want to know you’re going to understand their market, respond consistently and still be there after the first deal has completed. None of that comes from issuing a press release, it comes from spending time with people and building confidence through experience.

It’s also why I don’t think Scotland should simply be viewed as England with a different legal system. The legal framework is clearly different and that’s important, but it goes beyond that. The sectors, the businesses and the conversations you have with borrowers often look different too. Hotels, leisure businesses and commercial real estate all bring their own characteristics, and your approach needs to reflect that rather than assuming one national strategy will naturally fit every market.

What we’re seeing is that brokers aren’t looking for lenders that claim to do everything. They’re looking for lenders that know where they can genuinely add value and are honest about it. In fairness, I think that’s a healthier place for the market because it leads to better conversations much earlier in the process, before everyone has invested time pursuing a deal that was never quite the right fit.

That also means being realistic about growth. Expanding into a market isn’t simply about trying to generate as many enquiries as possible. We’ve found it’s much more valuable to build the right relationships with brokers who understand what we’re trying to achieve and where our approach genuinely suits their clients. Those conversations tend to produce better outcomes for everyone involved because they’re built on understanding rather than volume.

For me, that’s what building a presence in Scotland really looks like. It means spending time there, meeting brokers, visiting customers and understanding local markets rather than trying to manage everything remotely. You’ll learn something every time you’re there and, in my experience, those insights are impossible to pick up from behind a desk.

If we become a lender that’s known for understanding Scotland rather than simply lending there, then doubling the loan book becomes an outcome of doing the right things, not the objective in itself.

Conor McDermott is director of SME lending at LHV Bank