TWP Accounting LLP are the Surrey accountancy firm that represents the national organisation, The Corporate Finance Network, and as such have plenty of experience in dealing with the fallout of the credit crunch for local businesses. The events in the banking & finance markets over the last seven days has been unprecedented, however this morning’s news about the HBOS merger with Lloyds TSB has still come as quite a shock, especially as it is so close to home.
Philip Munk at TWP Accounting LLP explained “Over the last six months, we have seen the impact of the credit crunch gradually increasing, and certainly we have seen that Lloyds TSB were one of the few banks that had maintained an appetite for more lending to the business market. Several other banks are now openly saying that they aren’t interested in lending further funds, and are definitely starting to squeeze our clients’ lending facilities, which has meant we have constantly been having to identify more innovative solutions and other sources of finance for our owner managed business clients.
So it makes sense that Lloyds TSB has made this move this morning. We are of course concerned for our local towns as local residents may be HBOS or Lloyds TSB employees, and they are obviously facing concern for their future employment prospects. It has been seen this morning that those employees have yet to receive any indication about any redundancy plans, so we hope that this is rectified very quickly, to allay their concerns and allow things to settle down.
In the world of corporate finance, this merger is actually very good news, as it provides some stability, and has prevented a complete collapse of a large UK bank, which of course would have been disastrous. So hopefully this should ensure that the whole banking world, at least in the UK, can breathe a sigh of relief and get back to their business.”
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