Despite the huge Financial Bail Out the global banks have received the FTSE 100 has continued to plunge in opening trading, falling 5.3% to 3,862. The FTSE closed 7% down yesterday to 4,079 and comes on the back on the back of big falls in markets across the globe. The Dow Jones closed almost 8% down at 8,577 and Japan’s Nikkei 225 index fell a whopping 11%, the biggest one day loss since the late 80s.
Signs of optimism seen earlier this week when markets recovered some of the lost ground have been all but wiped out. BBC business editor Robert Peston said “that despite recent actions by central banks to help the banking sector, banks were still not lending to each other at anything like a normal rate of interest relative to official rates. This was worrying as it meant banks were unlikely to lend money at better rates to consumers and businesses”
While this nervousness continues all of us but more specifically Businesses in the real economy are going to be bearing the brunt of this bank reluctantness with this in mind Enable Finance has been review alternative sources of business finance for their corporate clients.
“Business is still being written and our corporate finance team are working closely with our clients raising cash flow finance and funding strategies.”