Banks 'Still Not Lending', Centric Commercial Finance Survey Reveals

LONDON, November 26 - 65% of corporate financial advisers have stated that the 'the banks are
not lending', according to an independent survey commissioned by Centric
Commercial Finance. 72% said that cash flow was proving to be their clients'
biggest challenge. Disappointingly, 56% of respondents claim that banks have
removed or are restricting clients' facilities.

Tim Hawkins comments: "The market needs certainty and innovation right
now. Advisers are looking to the independent asset based lending and invoice
discounting sectors for liquidity for their clients, which is so notably
lacking from elsewhere. These facilities have not only proven to be a
valuable lifeline to businesses during the recession, they will also grow
with them as they emerge from it. The renaissance of invoice discounting and
asset based lending has come at exactly the right time."

Described by advisers as a 'core funding solution', 80% of respondents
state that asset based lending and invoice discounting offer 'improved
working capital' (66%), followed by 'higher levels of finance' (66%) over and
above traditional sources.

When recommending a solution, advisers look for lenders to 'deliver the
deal as promised' (86%). This is followed by 'certainty of funding' (63%),
'access to decision-makers' (51%), 'business understanding' (46%), 'speed of
service' (42%), 'creativity' (37%) and 'reputation' (18%).

However, financial advisers are optimistic about the UK's emergence from
recession, with 65% of accountants and finance brokers expecting to see
'significant increases' in transactional activity within the next 6 to 18
months. 26% of those surveyed anticipate a resurgence of activity within 18
to 24 months. At the two opposite ends of the spectrum, 2% believe this will
happen in the next 6 months and 7% predict two years or even longer.

Whilst 77% of advisers who responded to the survey stated that 'survival'
is the primary focus for their clients, 70% claim that their clients are now
ready to 'exploit gaps in the market'.

In addition, 76% of advisers considered that an equity release scheme for
business owners considering retirement would be a highly 'appealing' option
at this time. Whilst a minority of respondents felt that some owners may
elect to 'hang on for better times', the vast majority felt that equity
release would be appropriate where the 'valuation is not too low'.

You can find out more about Centric Commercial Finance at
www.CentricCF.com.

Contact details: Michael Symes, t +44(0)20-7520-9216 m +44(0)7736-008270