Venture Finance – Asset based lending
solutions
The recent economic crisis has changed the nature of finance as we know it and the
days of big leveraged buyouts and 125% mortgages are long gone. Businesses and individuals
had got used to freely available credit, drawn from lenders who had unfettered access
to the global money markets, with little or no relation to deposit levels.
The easy availability of money with very few questions asked, led to a lack of risk
management and a virtual ‘lend on request’ policy.
The big changes that are now developing in the wake of the financial sector meltdown
are throwing the spotlight on to more sustainable forms of finance.
Companies still badly need access to liquidity and working capital, but it is no
longer so easily available in the form of unsecured or leveraged lending. Overdrafts,
revolving credit facilities and agreed loan and working capital facilities are being
withdrawn at a lightning pace by banks. Those that remain are subject to punitive
interest rates.
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