RSS Feed
DIGG this story
Business loan uptake down 'due to debt caution'
27/04/2007
Businesses appear to be cautious about taking on debt, according to the head of product management for Commercial Core Products at HSBC.
As a consequence of this, Doug Walmsley suggests that demand for credit has been flat over the last 12 months.
However, he indicates that an increasing number of banks are offering business loans, making the market extremely competitive.
Moreover, interest rate rises do not necessarily affect those who take out such loans as many of them are offered with a fixed rate, Mr Walmsley states.
Commenting on HSBC's business loan lending strategy, he remarks: "Our credit decision takes into account affordability of repayments.
"An increase in interest rates does increase repayments, but this should not affect the majority of our credit decisions."
HSBC's established customers receive a very competitive deal as loans offered by the bank are based on the track record of customers, he adds.
As a consequence of this, Doug Walmsley suggests that demand for credit has been flat over the last 12 months.
However, he indicates that an increasing number of banks are offering business loans, making the market extremely competitive.
Moreover, interest rate rises do not necessarily affect those who take out such loans as many of them are offered with a fixed rate, Mr Walmsley states.
Commenting on HSBC's business loan lending strategy, he remarks: "Our credit decision takes into account affordability of repayments.
"An increase in interest rates does increase repayments, but this should not affect the majority of our credit decisions."
HSBC's established customers receive a very competitive deal as loans offered by the bank are based on the track record of customers, he adds.