This maybe a little difficult for some lenders who may have forgotten how to spell commercial mortgages and finance let alone actually get round to lending some of our cash. But we must take the positives out of the very small move in the right direction. Did the earth move ? did it just bring a little smile to your face ? maybe not, but if this tiny chink of light in a very dark sky means that we may just be looking a little better than we were last week or month then lets take this as a positive.
It is very hard in the current climate of doom and gloom to get very excited about what is at best a blip in what has been a long downward slope into a financial bog, not of our own making. We have to remain optomistic in our outlook as it would be very easy to just throw the towel in and go and lie on the beech.
For most of us this is not an option, and particulary those in business where access to commercial mortgages and finance is the very life blood of being in business and being able to survive. Most businesses have had to take a very long and hard look at how they do their business, and the costs involved in running that business.
Staffing costs are normally are high on the agenda, with advertising and new products. If you do not advertise then you may be ignored by potential clients, but you are talking to a smaller demanding audience who are looking for the bargain buy, and the cost of your product maybe critical to the sale rather than the service and quality of the product
We need access to normal banking for our many small to medium sized businesses to survive and prosper. To take the next step forward in most businesses you are unable to achieve this without proper funding, because to expand means extra costs which cannot be recouped overnight. It is a little bit of a calculated gamble in business, and to grow and prosper you need to be confident that you have the right financial backing to enable you to achieve this step up.
Unless businesses are confident about the future they are not going to spend that extra money on expansion, which could mean extra jobs, which then leads to more jobs in other areas. It's a knock on effect but we have to start from a very low base where the banks are still reluctant to lend even when you put a cast iron blue chip deal to them.
Banking is about confidence, with low risk and good security, and the history of previous success behind you. The banks must of course be careful after some of the rash and downright stupid decisions that they have made in recent times. But these errors of judgement were made out of greed and the rush to be number one in banking, not the loans made to most of the general public.
The early return to normal banking cannot come soon enough, with access to commercial mortgages, finance and loans. Once the wheels of business start to turn again and we have the oil of access to normal banking, we should start to see the dark clouds of doom and gloom move on. It is spring time now after all, and with some sunshine we start to see people smilng again, and with access to commercial mortgages our businesses will be smiling again.
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