Paul Saunders, Director of the Recruitment Finance Division of Lloyds TSB Commercial Finance, puts a few funding myths to bed:
With the recent media coverage about banks’ capital restrictions and predictions that the recruitment industry could contract by 20 per cent this year, it would be easy to assume that funding is simply not available.
However, many banks are still committed to playing their part in ensuring that the tightening economy does not restrict the ability for well managed businesses in the sector to source funds.
The Government Asset Protection scheme has had a positive impact; freeing up capital and increasing liquidity in the market. And, despite the need to increase prices to reflect the increasing costs of money, the actual cost of borrowing for the majority of the Recruitment Finance Division’s clients is lower than it was this time last year.
Our appetite to support recruitment businesses is as strong as ever – in fact our lending to recruitment clients increased by 14 per cent last year to £196m. Big deals are still being done in the industry – and Lloyds TSB Commercial Finance, and other banks, will continue to provide working capital and banking facilities to both existing and new clients over the next year, and for years to come.
6 April 2009