- 13 Jan
Second Credit Crunch Coming? . . .
I just read an article highlighting the next potential problem for the economy arising from the continuing downward spiral of property prices which could lead to a second credit crunch.
The article suggests that banks could be exposed to £250bn of lending secured against UK commercial property and that if commercial property prices continue to fall half of this could need refinancing over the next four years. If this proves to be true, this will have a huge impact on an already faltering economy.
Maybe the factoring and invoice discounting finanicers will come into their own, as their funding is based on debtor book value as opposed to property values, if such a huge volume of lending does need to be refinanced with less reliance upon property as security.