Commercial Finance

With interest rates having virtually nowhere else to go the Govt is introducing even more dramatic measures in order to stimulate the economy. Stories abound about ‘printing money’ which is an over simplification of the process of ‘Quantatitive Easing’, but that is a completely different story.

The good news is that the intermediary market should be flying right now with enquiries reaching their highest levels since the start of the credit tsunami 18 months ago.

Fact: Many businesses are cash starved and need access to funds; anyone able to source facilities can transform their practice from Zero to Hero in the eyes of their business community.

Lenders: In the mean time have undergone a sea change in attitude and have ‘over corrected’ their lending policies to the point of stagnation. “Not on my watch” is a buzz phrase currently dominating financial circles.

With banks and lending institutions playing out the pretence of ‘business as usual’, it is interesting to note that many in the City still consider them to be teetering on the edge.

Commercial broking is in transformation with the upshot being that it is no longer a case of ‘taking orders’ to fuel case hungry lenders in their bid to fill sales quotas.

The current market is not about ‘going back to basics’ it is simply about the correct recognition and evaluation of cases, maintaining familiarity with the changing criteria of a wide range of lenders, and presenting funding propositions in a manner that is attractive to their underwriters.

Brokers in the new era will be those that have been able to evolve. Those who cannot or will not change will be consigned like dinosaurs to the pages of history.

Unless you have access to unlimited funds and can build a ‘super practice’ from scratch it is a case of leaning to collaborate and co-operate.

As it finally dawns on many that there is absolutely no immunity from hardship in the current climate, some practices are going to suffer badly as traditional income sources continue to dry up.

A new game plan needs to be implemented as a matter of extreme urgency.

Those of us who have been in this industry for some time have grown to accept that we must react and adapt to change, as we always do.

Forget about ‘doom and gloom’, concentrate on working hard, maintaining contacts and utilising the expertise of others where necessary.

Now for the reality check:
Commercial Loans:All lenders are telling us that they are looking at 75% LTV but that is the absolute max.
Business Start Ups Need a killer business plan. If it is a business purchase historic accounts will always help. Must have experience in the chosen industry.

We are seeing a lot of Pub and restaurant enquiries but remember, clients cannot expect to get top level LTVs on any business that has already proved a failure without serious back up on accounts and deposits. Industry experience crucial.
Bridging Finance Still plenty available and some lenders actually appear to be hungry. Must have clear take out plan.

Development Finance Very ’dry’ - seen as too speculative, but those who have engineered ‘off plan’ sales or take out by Housing Associations are still getting through.

Invoice Discounting and Factoring Anyone who still considers this as merely an expensive overdraft, ‘think again’ money is available and everyone has recognised that cash flow is critical.

Asset Finance - Coming to the forefront as businesses look for alternative methods of injecting cash into their businesses. Plenty of appetite for this at the moment.

Investment Property: Still holding up well for experienced property owners/managers who have significant assets and are not too highly geared.

Tap into my expertise and see what your practice can gain by working with me. For straight answers and quick decisions please give me a call.

I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake up homeless on the continent their fathers conquered.
Thomas Jefferson [letter to the Secretary of the Treasury Albert Gallatin 1802

Robert W Marshall Trading as Marshall Commercial Finance – Birch House Eastmount Road Darlington DL1 1LA is Authorised and Regulated by the Financial Services Authority Number 303069