New Business Finance Funding

Business finance has never been in the news more than it is now and justifiably so. The lack of liquidity is having a stifling effect on businesses looking to restructure finances to provide liquidity in today's market, and it could have a knock on effect in many ways. An incredible £76bn of commercial property loans require refinancing before the end of 2010.(1) If they are unable to achieve this, businesses and property will come under a double dip pressure. There are concerns of banks having significant category hits. Not surprisingly they are now finding out that they did not know what they had invested into. This is causing them considerable uncertainty in terms of their own balance sheets and exactly what they are exposed to. Naturally they will be very concerned about what they will now invest into. I am not in the habit of catching falling knives, and this market is falling, and it's only with clarity of what is really out there that banks will feel the ground unde...

This report was produced in a direct effort to provide more understandable insights about some of the most critical business finance issues effecting commercial borrowers. Our approach in this report is to describe current commercial loan circumstances in six words. We have adopted a similar model in other commercial finance reports such as "seven words to describe commercial property loans". The "simpler is better" perspective reflects the belief that after hearing an almost endless number of reports about commercial lending difficulties, what small business owners might really need is a more concise explanation about these problems and the resulting impact on their business financing options. Before proceeding, it is important to emphasize that small business finance options are often more complicated than anticipated by many business borrowers. We are definitely not attempting to characterize business loans and working capital financing as either straightfor...