Back to the 70’s

An interesting observation was made the other day regarding credit availability in the next 2 years.Over the past 10 years, the lenders demand to put volume on their books has seen the need for volume override traditional credit standards.

Sales have certainly driven credit, but we are now experiencing a change back to the 1970’s where credit dictates sales.

This is not necessarily a bad thing. Remember in the 70’s when your mortgage payments could not exceed more then 30% of your income. There was a lot more structure to the credit decision making, more emphasis was placed on insuring that the client had sufficient funds to both make loan repayments, meet genuine living expenses and had the ability to put something away for a rainy day.

Each lender is approaching these changes to varying degrees, some have put up the shutters whilst they try and work through what is needed and others are assessing each deal very slowly ensuring that all I’s are dotted and t’s are crossed.

Transport Finance have always provided a full credit application including an ability to afford exercise that fully outlines all costs associated with the business and highlights the excess available to provide for cost of living.

We spend the time to get to know our clients business inside and out, understand what they are trying to achieve before we put a deal together.

Our ability to successfully arrange finance, on terms that are favourable to out clients, make Transport Finance the obvious choice when looking for the right finance broker to represent you and your business.

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