The most of this 2016 was a year full of surprises. An EU referendum in June voting to leave the EU and then in November Donald Trump taken over White House. Adding to that a change of leadership in Italy and what looks to be a change in leadership coming up next year in France and Germany. That is before we got onto Greece, Spain and Portugal who all have financial issues yet to come out in the wash.
The question for most property owners and SMEs is more about the uncertainty that 2017 may bring and what this means for financing businesses.
So often the worst thing for any business owner is uncertainty. We all do everything we can to prevent uncertainty whether that be through forward planning or looking to mitigate risks however there will always be areas that we cannot influence those external risks only appear to be getting bigger as we head into the New Year.
So what is the future for commercial borrowing next year?
The message from the commercial lenders is that next year will be ‘business as usual‘. The challenge is that over the last few years ‘business as usual’ has been something very hard to define. What we do know is there are several regulatory and legal changes coming online in both January and September next year that will certainly have a big impact on investment property borrowing and as a result will have an impact on the SME looking to fund their trading business.
In between these changes coming online in January and September we have the prospect of the Government triggering Article 50 sometime before the end of March and whilst we don’t expect to see anything tangibly change after that time we will be entering another period of uncertainty.
If uncertainty is something that the business owner doesn’t like I can assure you it is something lenders like even less.
To try and help find some clarity to the changes of expected in 2017 we have produced a short brochure which details our outlook the 2017 and what we expect see happen.
This brochure is aimed at professional advisers, mortgage brokers, IFA’s, accountants and professionals so by all means please have a look at the publication and see what we think will happen next year but if you want to make a business decision of the back of it then please do so with caution, this is our view of 2017 and if 2016 is anything to go by who knows what could happen next.
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By Dave Farmer
Commercial Lending Outlook 2017