Entrepreneurs should avoid over exposure to a single bank as lending tightens
JOHANNESBURG –
According to lending specialist, Paragon Lending Solutions, there has been a marked increase in overdraft facilities either being reduced, or called in, over the last few months as traditional lenders tighten requirements for business loans.
According to lending specialist, Paragon Lending Solutions, there has been a marked increase in overdraft facilities either being reduced, or called in, over the last few months as traditional lenders tighten requirements for business loans.
Gary Palmer, CEO of Paragon, said,
“I have spoken to a number of clients recently who have approached us to raise funds for them after their banks have, often without sufficient warning, called in their overdrafts. Other clients have tried to make changes to their facility only to have the financier increase their repayment rate on the existing deal.”
“I have spoken to a number of clients recently who have approached us to raise funds for them after their banks have, often without sufficient warning, called in their overdrafts. Other clients have tried to make changes to their facility only to have the financier increase their repayment rate on the existing deal.”
He says the company had also heard from a client whose primary bank contacted them to say they would be incrementally reducing their facility over the coming months when there had been no change in the performance of the business.
Source: iol.co.za