Been Refused Finance

Why companies are being refused finance

How can we help you?

Contact Us
 
How have lenders been affected

by the credit crunch? (i)

 
 
How have lenders been affected by the credit crunch? (i)
Lenders are like any business - they source their product from the wholesale money markets and sell it for a profit margin. Let's consider the traditional 4 ways in which they raise funds to lend :
Their own internal resources - from historic accumulated profits and shareholder capital
By selling their own commercial paper into the debt markets - i.e. by borrowing from other banks
Cash from the general public and business - under the terms of their banking licenses
Packaging up existing loans and placing them in the finance markets for either re-financing or for sale as investment products
Under normal circumstances this provides a good balance for sourcing funds
Next