Competition among lenders appears especially acute in the commercial property loan market. Financiers are becoming more and more selective in choosing who they deal with, and within what markets they are prepared to lend.
Business lending conditions continue to create challenges along with demand for credit.
It is extremely important to understand which financiers are prepared to lend in your chosen market, and under what terms and conditions.
Recent changes to financier appetite is a direct response to perceived risks associated to individual market segments. Despite the recent targeted adjustments, banks remain vigilant in ensuring that their risk appetite and lending practices are appropriate: risks in residential property development and other commercial property markets continue to build.
Now is the time to review your banking relationship and ensure your financier is keen to support your business in the short, medium and long term.
Carl Thompson – Commercial Lending Specialist, Strategic Investor Group