Any wonder we're still in recession?

[st3v3]

I noticed this:

https://www.bbc.co.uk/news/business-21630828

How can the bankers justify refusing a loan to a business with a 15year record of profits for a van which will increase profits further when they're all on the take?

Beyond laughable.
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Roger wrote: Women don't get damp for clingy puppies. Get some better happy pills, hit the gym & buy a medallion the size of a dinner plate. Job done

[fatpies]

Because past profits are not an indication of future performance.

It also worryingly does not mention what his profits are or his GP%

His 'quiet profits' could be tiny. Or his GP extremely low. I pulled the plug on my own business when GP got under a certain amount.

Secondly it says he doesn't have enough collateral.

What you're advocating is a return to the bad days of 01 to 09 where anybody who could fog up a mirror would be offered a ton of loans.


Thirdly banks don't need to loan money. The BoE will simply print as much money as they want under the FfL scheme, which they can use to gamble on the stock market. If they win trebles all round. If they lose the BoE prints more money to make up the losses.


The fact he can't stump up £17K for a 'profitable' company rings alarm bells for me. Even a mate who ran a Kebab shop had £10K in reserve if any of his equipment broke down. I used to keep a considerable reserve to pay for equipment repairs and to pay off suppliers. So maybe his company isn't all that profitable after all.
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"It's easy to attack and destroy an act of creation. It's a lot more difficult to perform one"

[Alpha-9]

Meh they can refuse to lend money to anyone they want the same way I can

The guy then went and bought it without a loan, so maybe he didn't need one after all, or maybe it encouraged him to work harder, earn more and buy it himself


You can't both hate banks and want them to give you their money, pick a side
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Fzr-600 1999

[Vincent]

[smegballs]

It's non-existent money they don't actually even have due to fractional reserve banking their cash, they can lend it out how they see fit.

I'm probs going to be lending 200 to a mate so she can buy stock to start he business. Before I give her the cash I'll be looking through her business plan, confirmed orders etc. If I don't think her plan is sound - I won't finance her. My cash plays gets loaned out to my standards, not what the debtor thinks is profitable or not.

[LordShaftesbu...]

[fatpies]

[smegballs]

[LordShaftesbu...]

It's not a gift if it's a loan, is it?

[Hetzer]

[LordShaftesbu...]

What I'm getting at is, is it OK for banks to take money they were given for the express purpose of allowing them to lend and then sit on it? No-one is given a student loan with the intention of propping up the economy through lending it out.

[fatpies]

[smegballs]

Can't default, but it is written off after 25 years...

Plus you don't pay unless you earn over x amount.

Not real debt imo, altho future inflation could see the 15k repayment threshold actually being very low.

[LordShaftesbu...]

[smegballs]

It students need to live sure, they do this by purchasing good which is spending money in the economy. Mostly I agree with the lord though that we are not meant to be lending it out.

Looking at the amount of shitty adverts pandering to students and trying to lure them in with discounts - I'd estimate a reasonable amount of businesses are trying to cash in on student money. Regardless of the intent, in practice the govt creates a load of cash and gives it to young, frolicking careless spenders. That must have some kind of effect on the consumer economy.

Conversely, I'm a tight fuck and spend the bare minimum day-to-day in order to go to festivals and holidays abroad all year.

[BakesBeans]

Come on, it's a PR stunt. Mervyn is out of a job soon remember.

Oh, and if the chap has £7k deposit - that gets a very nice van, he doesn't need a brand new one!

There is never enough information in these articles to form a reasonable opinion!
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Current: Kawasaki ZX636
Previous Bike: Honda CBR600F ABS, Yamaha XJ6 F Diversion ABS, Honda VFR400 NC30

[TheBikerStig]

[Turkish]

[smegballs]

[oldpink]

this is why when I decided to set up a company I raised the money myself
and not bother with the banks and there hoops and I also have no debt to service
these days if I don't have the money I save it till I have enough for what I want

and now after an initial slow start we are starting to pick up work
and any profit is put right back into the business
rather than a bankers bonus
I'm investing in equipment not trying to acquire savings at least I have physical assets that can generate cash
not money sitting in a bank making nothing and a slim chance of loosing it if we get into the shit like Cyprus did and the government Germans decide to help themself to 40% or more
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I have become comfortably numb

Theory & hazard 24-may 2016, CBT 8th June 2016, MOD 1 2nd Aug 2016 Mod 2 2nd-Nov 2016 - Current bike CBR 600 RR

[h00dwink]

[JonB]

[Alpha-9]

[JonB]

[LordShaftesbu...]

Simply having a bank account has been enough to make me hate banks, incompetent malevolent thieves that they are.