AGORA COMMERCIAL FINANCE LTD registered in England & Wales Reg No. 5325078, Reg Office: Pomphlett Quay, Billacombe Rd, Plymouth, PL9 7HP
Licensed under the Consumer Credit Act. VAT Reg No. 786 7529 64 Subscriber to the National Association of Commercial Finance Brokers’ Code of Practice
New Rules, Same Game. (September 2009)
Long gone are the heady days of the finest margins and freely available funding for propositions of all types. This is accepted and understood and we can only play the game by the new rules.
However, perhaps more surprising is the deterioration in service levels we are witnessing, with those wishing to borrow often having to wait several weeks even for an initial response, and then facing requests for additional information which contributes to further unwelcome delays.
It is in such circumstances that the early involvement of an experienced broker can save considerable time by ensuring that all relevant information is obtained at the outset and by passing the proposal to long established and reliable bank managers still capable of delivering prompt and efficient responses.
Banks are also, in many cases, seeking to hold clients to ransom by linking any required variation in facilities to an increase in margins on existing borrowing. We have seen this practice following the past three recessions and we would encourage you to speak to us if your clients are suffering in this way.
On the positive side, whilst lending criteria remain fluid, we are able to secure agreement to lend in most cases where the loan to value ration is 70% or below (this falls to 60% in certain specific sectors). Pricing is also beginning to come down through the contacts we are using.
So please do not hesitate to ring David Harper to discuss any commercial funding proposal or issue.
Base Rate falls again. Finance enquiries up. Don’t listen to the Prophets of Doom! (June 2009)
Base Rate has fallen further and now stands at just 0.5% the lowest in the history of The Bank of England.
The press continues to focus upon the negative and anyone mentioning ‘green shoots’ is being ridiculed mercilessly.
However, we are inundated with enquiries and whilst certain lenders still appear to have their doors firmly closed we are getting finance agreed and on better terms than just last month.
Many business people have proved to be incredibly successful during recessionary times in the past and those with sufficient nerve now could steal a march on their competitors ahead of a future recovery. Don’t listen to the Prophets of Doom. If you or your clients need finance to expand then talk to us now.
Funds are available but at a higher price (March 2009)
A broker’s life has never been so tough! There are few active lenders and criteria changes almost daily. Clients still believe they should be able to borrow at Base Rate + 1.25%, miles below the more typical indicative range of Base + 3.25% - 3.5% for a quality deal and give us a real ear bashing. Come on, this is still below 5% all in!
Just remember that 6 months ago Base Rate was 5.25% and overall cost of funds near 7%.
Properties are better value and deals are there to be done. Don’t miss the boat but please be realistic over finance costs and don’t shoot the messenger.
