Wednesday, February 01, 2012

Loan volume up as prices get realistic

Selective "green shoots of recovery" ? Where, exactly are these shoots in meaningful terms across sole traders and individual pubs - Non existent, no change, nada?

Lending may have increased, marginally, to multiple operators but for most of the real world of pubs, the majority who are tied lessees there's no change from the norm of the perennial downward spiral to financial oblivion and greeting the Official Receiver.

As for what's happening with the Merlin banks there's no magic or wizardry there - no one's even sure how to add up what constitutes Merlin lending or how to account for what it really means against historic performance before Merlin was on the table.

Banks have always continued lending to multiple operators who know what they are doing and show financial strength in downturns - it's what banks are about - low risk. No amount of Merlin this or Gandalf that is going to change the stakes for the majority of publicans whose balance sheet and P&L scream 'RED LIGHT' to a banker.

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