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XL Business Finance Blog » Blog Archive » Lombard and Hitachi exit Broker Market

Lombard and Hitachi exit Broker Market

Last week Lombard finally closed their doors on the broker market. A few days later Hitachi followed suit. Rumour of Lombard exiting the broker market came as no great surprise however I don’t think anyone expected Hitachi to exit as well. Only a few months ago Lombard had significantly reduced the number of brokers they were dealing with and rumours of significant losses in the sector  there was only going to be one outcome.

This is still bad news for the market with the exit of  the UKs largest leasing company. There will be even less choice of funders in the market place and the ones that remain wull potentially increase their rates and be even more choosy  with whom they will do business. It is simple economics of supply and demand. The good news that there are still one or two funders remaining that are still open for business. A good independent finance broker will certainly  be able to add value and will still be able to structure a deal with the lessor known leasing companies.

Whilst funds remain tight deals will be done on the funders terms. Customers can expect higher deposits, shorter terms and the need to provide more security  such as personal guarantees. The good news is that there are rumours of a couple of foreign banks looking at entering the UK leasing market. Still tough times ahead I am afraid.

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XL Business Finance Ltd is a privately owned and independent business financing company with established links to many of the UK's leading finance houses. XL Business Finance provides a viable alternative to high street banks that lack the flexibility and imagination to provide a solution to most business users requirements. XL Business Finance can provide a full range of business financing solutions and we ensure a high level of customer service and pride ourselves on quick decisions. Our independent status will ensure any offer of funding and asset finance leasing is best suited to our customer’s needs.

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