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Predictions for 2016

 

As much as this is very much a time of year to relax and forget the trials and tribulations of the world of asset finance it is also a good time to reflect and consider the year ahead

Having said that you may well think I would be better advised switching off but I can’t deny that I do find the whole business of finding the best solutions for clients and getting to know their business fascinating and rewarding

So what do I expect to see in 2016?

First of all the peer to peer online portals will be tightening up a little on credit. Understandably they have sought market share with some inevitable results. That’s all part of maturing as a business and as I have said before, they are a very welcome addition to the market

The flexibility of options offered by these new entrants will continue to push the existing lenders away from onerous minimum on year contracts with long notice periods. Lenders and commission driven brokers will not approve but this is most certainly a strong option for clients

There are probably more active lenders than ever before with Siemens and Amicus being two notable additions. This continues to put pressure on lenders to offer something different and we will continue to see more new and innovative products

This will increase the importance of the role of the broker. It is virtually impossible to find the best option in a market of 50 lenders without market knowledge. The differentials between lenders have become more marked

Another welcome development will be continuing drift away from demands for unnecessary personal guarantees. The newer lenders appear to have a greater understanding of the impact of these documents and existing old school players in the market will be forced to accept that this is often a deal breaker.

There will be a greater appetite for export driven debt simply because more lenders have become more open to a market where the risk was often laughably exaggerated. The days when BP in Belgium was seen as an exotic risk shiuld hopefully have passed

Another interesting development is the dropping of the sales teams by one lender. Increasingly lenders are finding that clients are nearly always found through brokers or referrals. The business community frequently does not trust contacting banks directly

Finally I see costs remaining very competitive indeed.

Heres ts to a great 2016

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