Banks still not lending to business'

[Deleted User]

Thrugelmir wrote: »

You are borrowing to speculatively invest in property. Not borrowing to fund growth of a business.

Completely wrong.

Just because I am a landlord doesn't mean that is all I do. I have small businesses and it is that income that enabled me to become a landlord.

I'll say it AGAIN the fact that the bank refused a commercial mortgage despite a good credit history, cashflow and enough money in the bank to purchase outright was one specific example to highlight the inaccuracy of your or ILW's post that they were and are willing to lend to SMEs. Not my reason for hating the banks or their apologists, that's mainly about fairness and patriotism.

ILW

[quote=[Deleted User];43889536]Completely wrong.

Just because I am a landlord doesn't mean that is all I do. I have small businesses and it is that income that enabled me to become a landlord.

I'll say it AGAIN the fact that the bank refused a commercial mortgage despite a good credit history, cashflow and enough money in the bank to purchase outright was one specific example to highlight the inaccuracy of your or ILW's post that they were and are willing to lend to SMEs. Not my reason for hating the banks or their apologists, that's mainly about fairness and patriotism.[/QUOTE]

I can only speak from experience, I also have a small business and know a few others that do. Credit lines still seem to be available from banks, but they are looking a bit harder at what the risks may be.
A few years ago we used to get a call from the manager every few months just asking of we wanted to borrow more, but this has now stopped.

Pennywise

ILW wrote: »

To strengthen their balance sheets, is that a bad thing?

Yes it is when they are breaking their promise to lend more to small business.

If they want to strengthen their balances sheets, it would be a lot easier and quicker for them to stop lending to big businesses and/or to sell off some of their assets.

It's not unreasonable to expect them to honour their promises!

ILW

[quote=[Deleted User];43888620]Wrong its just the banks reneging on the promises that got them bailed out. No conspiracy, just sleaze.[/QUOTE]

The banks did not have to make any promises to get themselves bailed out. Too big to fail was all they needed to say and they were 100% correct.

Thrugelmir

[quote=[Deleted User];43889536]
I'll say it AGAIN the fact that the bank refused a commercial mortgage despite a good credit history, [/QUOTE]

So why do you consider it a "right" to be given the mortgage?

Why didn't you approach another bank?

[Deleted User]

ILW wrote: »

I can only speak from experience, I also have a small business and know a few others that do. Credit lines still seem to be available from banks, but they are looking a bit harder at what the risks may be.
A few years ago we used to get a call from the manager every few months just asking of we wanted to borrow more, but this has now stopped.

Your experience doesn't seem to be consistent with what is being reported in the press. Nor what I have seen and heard from other business owners.

I thought your attempts at trying to misrepresent me as a bad risk despite buying the property outright and having no bad debts, no defaults, positive cashflow throughout was just a !!!!!y attempt to try and dismiss me as someone who is just bitter about their lot. I was wrong, obviously, my apologies

ILW

[quote=[Deleted User];43890040]Your experience doesn't seem to be consistent with what is being reported in the press. Nor what I have seen and heard from other business owners.

I thought your attempts at trying to misrepresent me as a bad risk despite buying the property outright and having no bad debts, no defaults, positive cashflow throughout was just a !!!!!y attempt to try and dismiss me as someone who is just bitter about their lot. I was wrong, obviously, my apologies [/QUOTE]

That wasn't me.

bendix

[quote=[Deleted User];43890040]Your experience doesn't seem to be consistent with what is being reported in the press. Nor what I have seen and heard from other business owners.

I thought your attempts at trying to misrepresent me as a bad risk despite buying the property outright and having no bad debts, no defaults, positive cashflow throughout was just a !!!!!y attempt to try and dismiss me as someone who is just bitter about their lot. I was wrong, obviously, my apologies [/QUOTE]

The only example you have quoted is from late 2008, right in the eye of the credit crunch storm.

Have you tried again since then?

Thrugelmir

Pennywise wrote: »

If they want to strengthen their balances sheets, it would be a lot easier and quicker for them to stop lending to big businesses and/or to sell off some of their assets.

Precisely what RBS has been doing under Hester's direction.

Strengthening balance sheets also requires better quality lending and margins.

LloydsHBOS's capital return on selling PPI insurance was estimated to be 497%. LloydsHBOS is no longer be able to cross subsidise other products and services from this source of income. So the result is the cost to both business and the consumer will rise on core services such as lending.

[Deleted User]

bendix wrote: »

The only example you have quoted is from late 2008, right in the eye of the credit crunch storm.

Have you tried again since then?

No, I managed to get that business established and sold it on without borrowing. My original intention before I get any further attempts to misrepresent what I say.

My experience was consistent with comments from MPs and the press at the time. If anything both the MPs and the press seem to indicate that this is getting worse not better.

The point being that our MPs and ultimately us tax payers were misled by the banks.