MIp33-34_0210:MI 2008 21/01/2010 17:17 Page 5
Commercial News
33
NACFB
Treasury calls for business finance options
Work to increase options for UK "Here in the UK, our large cor- document focuses on a range of
Member
businesses in need of non-bank porations have had a great deal of issues relating to business finance
finance is the subject of a discussion success in accessing finance direct- including:
Services
document released by the Treasury. ly from credit markets with a surge lcredit assessment and monitor-
The discussion document seeks in corporate bond issuances. ing;
views on the barriers to more Smaller firms, however, have not lcorporate transparency;
launched
diverse financing for firms with the been able to similarly replace bank ltransparency in the pricing of
intention to introduce proposals for lending by directly tapping finan- bank loans
reform later in the year. cial markets or non-bank financ- lUK investor preferences;
The National Association of
Financial Services Secretary to ing. lnon-bank loan markets and high
Commercial Finance Brokers
the Treasury, Paul Myners said: "A more diverse funding market, yield bond markets.
(NACFB) has announced the
"The extraordinary events in credit where large and mid-size firms can The document attempts to iden-
launch of a new initiative to sup-
markets over the past two years go directly to markets or have tify barriers to the development of
port its members in conjunction
have shown that the continued options other than banks when they these alternative sources of finance.
with Legal & General, Towergate
availability of any single form of are looking for support, would The Treasury is seeking feedback
and Croner.
business finance cannot be taken clearly be an advantage to the UK from interested parties, particularly
Chief executive of the NACFB,
for granted. Right across the world, economy, not just in economic the investor and business commu-
Adam Tyler, said: "We have been
firms that had relied on loans from slowdowns." nities.
working for the last twelve months
banks to finance their operations The Treasury announced its The document can be found at
to get access to ancillary products
found themselves in a very difficult plans to publish a discussion paper http://www.hm-
and services for NACFB brokers to
situation when bank lending con- on non-bank lending channels in treasury.gov.uk/fin_non_
add extra income streams during
tracted. December's Pre-Budget Report. It's banking.htm.
these tough times. We are delighted
that in these first stages we have
been able to work with such big
Business confidence slips, but optimism grows
names as Legal & General and
Towergate Risk Services.
Business confidence slipped in (19%) said they were more pes- mist, Lloyds TSB Corporate
“Very soon members will be able
December 2009, but is still at a simistic, resulting in a total balance Markets, said: "Although confi-
to put introductions to these firms
sharply higher level than twelve of 33%. Last month, by way of dence levels fell back at the end of
using the NACFB's own back office
months, according to the latest comparison, two thirds (67%) the year, the context here is critical.
software system,
Lloyds TSB Corporate Markets were more optimistic and 16% Across the board, businesses are
CommercialKeeper (CK). A 'short'
Business Barometer. were more downbeat - a balance of now far more optimistic about the
version of the CommercialKeeper
The survey - a monthly snap- 51%. economic outlook that than they
software called the
shot of company views on the out- Despite December's fall, the were twelve months earlier.
CommercialKeeper Referral System,
look for the economy - shows that overall balance of firms expecting "The fact that confidence is not
has also been devised which will be
the number of firms claiming to be economic conditions to improve on a smooth upward path is
sent to all members and will allow
more optimistic about economic remained at a much higher level another reminder that the pace of
them initially to introduce business
prospects fell in December. Just than at the end of 2008 and is far recovery may be gradual and
to Towergate and Croner.
over half of businesses (52%) said above the long run average balance uneven, but it is clear that overall
they were more upbeat than they for the survey of 7%. optimism amongst firms is still
"In addition, in the next few
were three months ago, and a fifth Trevor Williams, chief econo- growing."
weeks we will be rolling out a train-
ing programme to all members to
make sure they understand the
products they are introducing and
BTL ends year on a high
can spot opportunities. This is
2009 leaves landlords £12,700 in capital as the property fell in value, tor of LSL Property Services con-
offers a huge potential benefit to
the black, almost reversing £15k and earned £7,900 in rent for the cluded: “2010 is likely to be an
members and hopefully in time we
losses in 2008, according to LSL full year, leading to a total loss of interesting year for the buy-to-let
will be able to add other providers
Property Services. £15,100. market. The proposed introduc-
on to our panel."
According to LSL, landlords The research showed that an tion of regulation should help filter
Clare Harrop, head of specialist enjoyed a 7.6% annual return on increase in property values and a out unscrupulous mortgage advis-
protection at Legal & General, com- their investments by the end of recent slight drop in rents caused a ers which will be positive for the
mented: "I am extremely pleased December 2009 – an average dip in yields in December. sector, particularly for inexperi-
that the NACFB have chosen us as return of £12,740. This was a com- Landlords’ properties rose in value enced landlords. The downturn
their protection provider. At Legal bination of modest capital gains of by 0.4% in December. By contrast, has already pushed many of the
& General we pride ourselves on £4,831 on each property and the average UK rent fell slightly in short-term speculators out of the
offering great service and advice for £7,909 in rental income. The value December, down 0.4% to £661 per market too. Buy-to-let is an essen-
Life assurance. This deal opens up of their properties rose 3% in the month. Rents have corrected tial part of our housing market –
new opportunities for introducers year while rental income after void slightly since September giving up we need well capitalised, experi-
to see a significant increase in earn- periods added a further 4.6%. a third of the sharp rent rises in enced, professional landlords. With
ings. I would encourage NACFB By contrast, in 2008, a typical the summer. Rents ended 2009 returns rising, they can once again
members to attend the training landlord would have lost 8.8% 0.2% higher than the previous look forward to investing more in
days to fully understand the full even after allowing for rental year. the sector to meet our housing
potential." income. They lost £23,000 in David Brown commercial direc- needs.”
www.mortgageintroducer.com February 2010 Mortgage Introducer
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