The Anonymous Widower

ING Pulls Out

I heard this story from a friend, who used to broke deals for the Dutch bank.

The effect is summed up in this paragraph from the article.

Last year, the leasing business provided £22bn to help keep British industry running – many of the deals being done direct between banks and large companies. On that measure, ING Lease accounted for 5% of the market.

However, it specialised in the smaller end of the business – farms and young firms that got in touch via specialist brokers.

It is these customers, wanting essentials such as tractor attachments, computers, desks and commercial vehicles, which will bear the brunt of the loss.

It left lots of my friend’s clients without finance, as he deals very much at the smaller end. Last time, I spoke to him, he was thinking of retiring, so leaving his clients further up the river without a paddle.

I think, it shows that we need to get alternative methods of finance in place. This is Funding Circle territory, but at the moment they are not big enough to replace much of ING’s portfolio.

It also illustrates a rule of my friend, David.  Never bank with a bank head-quartered outside of the UK.

November 9, 2012 - Posted by AnonW | Business, Finance, News | Banks, Funding Circle