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Messages currently ordered by date added
Topic: Good news, bad news
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Manager Trade Credit
PMG Financial Services Ltd
Posts: 13
Joined: 09 Feb 10
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An article in yesterday's Financial Times referred to a recent survey of Fiance Directors, by Deloitte, which stated that "Finance directors now perceive (bank) credit as being more available and the cost of new credit lower than at any time since the 3rd quarter of 2007".
However the article on this website, 'Woe continues for businesses' which refers to research conducted by Demica, which states that 80% of UK firms are still finding it hard to obtain traditional bank credit.
The Deloitte survey was from 32 FTSE 100 companies & 93 UK companies representing 28% of the equity market. Possibly the responses relate to size of business, but it seems a marked difference of opinion.
Thoughts and comments appreciated.
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Director
t/as Fuzzy Bobble
Posts: 37
Joined: 26 Mar 10
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I think it means;
a) Bank credit is available.
b) 80% of businesses are not credit worthy.
I think it quite responsible of the banks to only lend money where they are sure they will be repaid. The days of banks handing out free cash has gone!
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Director Credit Services
Bell Microproducts Europe
Posts: 122
Joined: 13 Jul 06
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Hi James,
Just one glance at the type of companies approached in this survey tells me all I need to know. I find surveys such as these quite misleading. If someone wants the real picture, they need to ask those well below these levels of their experiences. I am firmly of the opinion that businesses with revenue of between 2-15m will talk a different language, more so if they are handicapped by weaker balance sheets or seek added borrowing.
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