Given that we deal with developers and business owners all the time, we get an insight into the state of the British economy and the troubles facing businesses. And it’s no easy street.
We recently completed a short-term finance deal that effectively kept a Yorkshire manufacturing business open and 25 people in employment. The business now has time to look for a long-term financial solution.
The idea that Project Merlin has made any difference is ludicrous. Mainstream banks still have no appetite to lend, creating major issues for smaller businesses.
It might be odd to hear this from a bridging lender, but we need a fully functioning, mainstream, long-term lending environment.
We want to see banks helping those firms that can deliver the growth that will take us out of this economic mess. We also want them to support the bridging loan industry to help us help them.
We shouldn’t forget the impact our loans have we keep our staff, accountants, lawyers and surveyors employed. Developer clients spend on building works and everything that comes with it so people have a place to live.
In effect, we create jobs and put money into the economy.
The irony is the mainstream banks who took bail-out money are now reluctant to help the taxpayers who rescued them. Project Merlin appears to be nothing more than smoke and mirrors.
How about Project Active Lending to UK Businesses? It’s not as snappy a title, but certainly an improvement on what we have.