JCB Finance has recommended that plant owners looking for new
investments use asset finance specialists, as it becomes more and
more difficult for them to secure finance from their banks.
JCB Finance’s marketing manager Nigel Greenaway said: “Many
lending institutions are already nervous about their
construction-related portfolios and will now see a big decline in
revenue and profitability in customers’ 2009 accounts compared with
2008.”
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Greenway explained that while a bank might only look at the
accounts and decide not to lend because the firm’s sales are down,
an asset finance company, which has better knowledge of the market
and residual values, is much more likely to agree to a
transaction.
He added that companies being refused a loan should always
prefer financing, even when they can buy assets in cash.
“When the upturn comes and business starts to pick up, there is
likely to be a period when working capital is very stretched and in
the past this has been the point when companies fail because they
literally run out of cash to pay the wages and bills,” he said.
Antonio Fabrizio
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