The Government has requested to lenders to start to lend again to businesses especially small businesses who are struggling in the UK economic downturn.
The problem is though the government have backed some of the major banks with extra money to lend it will take some time before this actually filters through. Some economic experts are concerned that lending will return to the old style of strict banking underwriting and credit criteria which some may say restricts and impedes healthy business growth.
Lenders have become extremely conservative and risk adverse. They have looked at vulnerable sectors and questioned if that is an area they want to lend in. Questioned higher loan to values on a business premises, is it safer to drop the LTV. Looked at serviceability, can the borrower pay this back and perhaps increase requirements. The end result is considerably less cases are being passed. This impedes UK business growth. This may take some time to improve.
Good news for small and medium sized businesses as bank interest rates were drastically slashed by 1.5% recently due to the storm of the credit crunch and worldwide downturn. Banks indicated that the full rate will be passed onto businesses, which will aid falling sales and higher overheads. Many business mortgages are on base rate tracker deals.
Business owners can consider contacting their bank to re-negotiate their deal. However banks are not in a very flexible mood at present and some are calling in risky debts and higher overdrafts. One possible solution may be to use a commercial mortgage broker who may know of a better deal or have strong relations with a lender.
Lending banks are looking at securitisation and debt serviceability. So for example if a business borrows via a mortgage on a business premises, then the lender will be seeing if that company has a good potential to cover the monthly payments. And they will be assessing if the amount of debt is covered via the equity in the property or a charge on another or possibly other assets for example plant and machinery.
Business loans
Lending can be in the form of bridging finance where it is regarded as a short term loan, often as a temporary measure. Bridging finance can be very expensive with higher and rolled interest. Standard loan can be loan secured on assets or non-secured with variable terms.
Guitar School Tips
There is an old saying if you don't use it you will loose it. That is very true for improving your electric guitar playing. So get in to a routine that will insure regular guitar practice.
Your Guitar Progression
When it comes to learning such new skills patience will be your guide. It is important to progress slowly one step at a time though we all want it now without the effort so it is very easy to get frustrated which will take away your concentration.
