As we come to the end of the year, its been an interesting twelve months as we are seeing thing tightening up in terms of availability of finance, trading positions and the wider economic outlook.
We have focused on this as an area of concern and are seeing more pressure as the banks have revalued assets in this sector.
At the coalfront there has been increased pressure on the section for food and beverage, we have assisted both established and new locations deal with landlord pressure and declining trading operations.
Tightening of Credit
We are seeing a reduction in available credit facilities and follow on pressured placed on cross collateralisation and debt amortisation. This resulted in opportunities for expansion being reduced.
Alternative sources of funding appear to be withdrawing as the banks are exiting core markets.
Our experience has seen a rise in the number of business sales but a decline in the quality of these. Franchising has suffered significant regulatory and media pressure and we have increased our assistance to firms looking to exit franchises.
The year ahead
Unfortunately we are seeing further pressures, and don’t expect an improvement for the year ahead.