year, State Securities (SS) has reacted to the worsening market
conditions by pulling out of some asset sectors.
Andrew Bullard, sales director of SS said that although the
company had not altered its general underwriting terms, “for some
assets, however, such as high-value cars, the market has all but
disappeared and we are not financing them”.
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During Q208, the company re-structured and closed its branches
in Scotland, Leeds, Preston and Birmingham, with operations now
centred upon the company’s Southampton office.
Of the eight new-business staff affected by the closures, one
was retained by the company while the remainder opted for voluntary
redundancy.
Despite this, Bullard said the company, which specialises in
lending to subprime customers, had no shortage of funds under the
present economic crisis, although he added that several supporting
brokers are experiencing difficulties as other lending sources dry
up.
“It is pretty tough out there at present,” he said, “with
defaults and late payments on the increase. It is crucial for all
lenders to keep on top of their arrears and to be careful to whom
they lend.”
Bullard added that current precautions taken by SS include
tightening underwriting on certain property types, increasing
security requirements on property values that have dropped and
amending residual values in line with market trends.
Meanwhile, Ralph Robertson, regional director at State, said
that the company had experienced extensive growth in the waste
management sector, including skip hire, waste recycling and
investment in modern transfer stations.
