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With the traditional bank loan becoming more difficult that ever to obtain from a High Street Bank, small and medium sized businesses are looking at alternative lenders and also solutions.

 

Research has recently showed that 74% of SME's are saying it is difficult to obtain bank funding. SME's should consider as a solutions for this:

 

Independent lenders that are at times just as competitive as High Street Banks but can provide an additional line of credit

New financing products not available through high street banks such as asset refinance

 

Don't be limited to just one view of the market that your Bank Manager has and contact us for a FREE assessment

I hope Banks will increase their lending this year. This is also a message the FSB has been communicating and it is interesting that they have asked for more lending from non UK Banks. This is interesting because before the credit crunch they were a number of banks from European countries lending iin the UK, which the typically example being the Irish Banks like Bank of Ireland. Not only did they lend but they increased the competition for the Big 4 banks which helped to drive down margins and fees to customers.

 

We are also expecting a host of new Banks being created in 2010 and Advocate Finance are monitoring the market constantly to ensure we have access to them

 

Happy New Year

November saw a 2.7% rise in Commercial Property prices as investors chased yields that are now are their highest for years. Research shows that the average yield is now 7.6% which is double the yield on 10 year UK gilts.

 

However some analysts have warned investors to be cautious because their is still falling tenant demand and falling rent. For more information on Commercial Investment mortgage contact us today.

Several businesses has been provided with much needed cashflow by refinancing their current assets (plant, machinery & equipment). Some examples of deals completed include refinacing lathes, cranes and coaches that had the existing finance paid off but the asset still had a residual value. This residual value can be used as security for the refinance. A simple hire purchase or leasing agreement is signed and up to 100% of the residual value of the asset can be provided as cashflow for the business. For more information visit http://advocatefinance.co.uk/Assetrefinance.aspx

Advocate Finance have just completed an offer of a commercial mortgage that provides a commercial mortgage for 100% of the purchase price for an Industrial Unit. In addition the Commercial Mortgage provided funds totalling an additional £33,000 to pay for renovation costs to the property.

 

The commercial mortgage was arranged with Aldermore Bank PLC that is the first and only Bank to have been created since the credit crunch and is just one of the many lenders that Advocate Finance has access to provide solutions to its clients

The Bank of England has just announched that Base rates will be staying at 0.50% for the 9th consecutive month. This is good news for people with Business Finance and commercial mortgages linked for base rates, as it will ensure payments are affordable.

 

Libor yesterday was slightly higher at 0.60% and 3 years fixed was at 2.34% which are also historically lows. Many people looking to arrange business finance and commercial property ask me where I see interest rates in the future. I can't give advice on this subject as it is like looking into a crystal ball but my personal feeling is that they are going to remain very low for some time still.

 

The pre-budget report yesterday showed the UK is in a worst recession that we thought and when the policies that are being put in place to raise more tax for the government, start to have an impact, this should help to hold back inflation without the need to increase interest rates.