As borrowers, we automatically assume that banks are there to lend money, right? The answer is – not always.

Right now, there is more than one major bank who would stop lending today if they could.

The challenge for any funder is that their first priority is not to lend money, it is to make profit for their shareholders. At the moment, there are a number of factors that mean that lending money is not the most profitable pursuit for banks. Costs of funds from offshore are high and onshore central bank policies mean the banks now have to hold more “real” money as a percentage of the money they lend out. All this leads to higher costs and lower profits.

So, what does this mean for borrowers? It means that no matter how much you love the bank you’ve been with for years they may well not want to lend you money. Instead of shutting their doors the banks tighten criteria to the point where many people do not qualify for borrowing.

So, is there any good news? There is. Even in times where funds are tight, different banks follow different strategies. There is always someone willing to lend – it’s simply a case of knowing where to look.

This is where we come in. We have an overview of all the lenders – not only trading banks but non-bank lenders as well. It is our job to match a lender (and their changeable criteria) to you and your borrowing needs. We are here to help.