All articles by Peter Hunt
Peter Hunt
Mid-ticket thriving for some
While risk-obsessed large funders are signing less and less mid-ticket business, the opposite appears to be the case with small funders Maybe it is the end of the recession, or maybe it is just that bank-owned, tier 1 funders are making less capital available and increasing their underwriting criteria or focusing more on customers of their parent bank
Peter Hunt analyses market statistics for the year to 30 November 2009
New business volumes of FLA business finance members were materially lower than in October 25 percent down month-on-month for the market, excluding big ticket, and 20 percent down on a year-on-year basis.
Walking a tightrope
With bad debt rising in sub-£10,000 deals, is now the time to be exiting the micro-ticket market? While economic commentators mention a path to recovery, a number of financiers in the micro-ticket market appear to be walking a tightrope between survival and unsustainable credit losses. While margins appear fairly strong and some remedial actions have been taken to tackle defaults, high levels of realised and provisioned bad debt seem to make profitability marginal at best, with many companies likely to be making a considerable loss.
Peter Hunt analyses market statistics for the year to 31 October 2009
October new business volumes of FLA members were expectedly down on the previous months quarter end, though thanks to the first year-on-year growth in car finance in 13 months, the business finance market (excluding big ticket) was down only 5 percent on the month and 22 percent on October last year
Mid ticket blues
With lessors setting pricing in mid-ticket deals too low and volumes down, is there any room for optimism?
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UK Databank – October
Julys FLA business finance statistics showed a series of interesting developments, perhaps none more so than the headline volume. Some heart can be taken from the fact that at £1.5 billion (1.7 billion), business finance volumes (excluding big ticket) were the highest since Marchs quarter year end.
Mitigating losses
Margins are up in small-ticket leasing in the UK and on the continent, but so is bad debt. Also, as broker business declines, how exactly will business be sourced in the future?
UK Databank
Despite being nearly 10 percent up on the previous month, compared to last year business finance volumes (excluding big ticket) dropped by nearly 40 percent.
Peter Hunt analyses market statistics for the year to 31 May 2009
Mays FLA business finance statistics showed another month in which volumes, excluding big ticket transactions, were down over 30 percent year-on-year, as had been the case in six of the previous seven months