Basel rules are already hitting lending claim the banks
They claim that the the new regulation on loans to businesses, which is not yet in force, is already reducing further their ability to lend, this was reported to the Bank of England.
The Basel III rules (announced in September) will force banks to keep a cash balance against loans to withstand shocks of losses in the future. They continue to struggle to get risk off their books so that they can get access to funds for lending. This position has increased the market for alternatives to banks for borrowing for businesses. Invoice Fin ance h as seen huge growth as a way of improving cash flow into a business by turning invoices into cash quickly to fund wages, taxes etc. One such company offering Invoice Finance facilities is Ashley Commercial Finance who operate in England and Wales in the UK.
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