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GE Capital. The end

geGE are divesting themselves of their finance arm, GE Capital.The plan is for the group to concentrate on its core manufacturing businesses and pass off the finance arm to the specialists, ie the banks. This piece covers many of the arguments in favour, some of which you may or may not agree with.

Prime amongst these is the suggestion that these big conglomerates cannot handle lending as efficiently as the the mainstream banks. Really? Dare we mention the word “bail out”? Whatever the certain statistics suggest, GE did not bankrupt itself in the process of losing control of financial transactions.

That may suggest to many a very cautious lender but I can only report as I find and what I did find was a lender that assessed prospects in a professional and often enterprising manner. More than once I found that they were the one lender interested in decent prospects that had been dismissed by the habitually lazy minded underwriters time serving at other lenders

Yes, GE could be a little ponderous and bureaucratic but their retention of clients was the strongest in the sector

To all intent and purposes they withdrew from the small/medium asset finance market late last year and i thought that was a great pity. To my mind they underestimated what a strong brand they were.Some lenders names are close to toxic but many of my client’s certainly responded well when GE was suggested.

I will miss their presence in the market but is it also worth pointing out a larger point to this change in strategy?

The shift from finance to industry is surely something that cannot go unremarked upon

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