If you have cash in this market then you are set to make a lot of money in the future when the market comes back. Cash is King and never so true as now in this market where only the brave will survive.If only the banks would trust the clients who have proved over time that they know what they are doing, they would be building up good lending on low loan to value with good rental coverage.
Short term finance has filled the void but for how long can this go on without the banks coming in to take out the initial finance and replace with long term commercial mortgages. Short term finance was never meant to be open ended, but that is what is happening when clients take a flyer on a deal in the knowledge that they have nothing in place to take out the short term facility and are looking for a change in the market to enable banks to come back with confidence.
The lenders must make a real return to the market not a token one, and get businesses thriving again, lending to expand and get some of those workers off the dole queue and back to work paying tax and helping the country to get back on its feet.
Commercial mortgages, finance, and business loans is the life blood of bringing industry and business back to life, the banks must reach out and start to lend and lend now.
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