U.K. banks tightening lending.

Hello everyone I hope you are all well.

In the U.K. we are told by the large banks that small businesses do not want to borrow.It is not that some want to borrow but that U.K. banks ,if willing to lend,want high interest rates. Their explanation is the risk factor relative to the loan.

We do however know that banks want to shrink their loan portfolio.The large banks will only realise that when they have shrunk considerably someone has filled that gap.

In the U.K. nonbanklending is a new way of raising finance ,something they will take time to get used too.

However within 10 years nonbanklending will become totally mainstream as finance directors will in some way be forced to look for other types of finance as bank finance dries up in front of them.

I do however believe that as long as nonbanklending is strictly monitored by the regulators, which it will in the U.K. be starting April 2014,then 2 results will take place in the finance world.

Firstly finance directors and the borrowing public will have their debt levels more widely distributed.

Secondly it will make the funding and borrowing within finance in the hands of more structured entities which should limit the disasters that take place being handled by only half a dozen major players.

Happy and successful investing to you all.