Norton Motorcycles speeding forward

Stuart Garner acquired Norton Motorcycles for just under £10 million during the financial chaos that took place in 2008. Many would regard this as one of the lucky companies to survive the financial crisis. Since that time the company has been turned into a profitable enterprise and now has an order book worth over £25 million, and it is still looking to expand.

Santander has recently launched a debt fund valued at £200 million and the company is one of the first to be granted access to this fund. The company has a already been rejected for a loan by 10 banks and the company have commented that if it were granted funding a year ago, when it first wanted it, it would have been able to double its number of staff by now.

Many people are speculating that there will be a second credit crunch which could be worse than the first and the government and banks are currently making commitments to SME’s as they are viewed as essential for a successful economic recovery.

This new fund by the Santander bank is an example of such an offering and RBS and the Lloyds group have also said that they are looking to increase the number of loans they are making to SME’s. These two banks are currently owned by the state and have been some of the largest lenders to SMEs since the financial crisis began.

Many people are expecting the economy to continue to falter over the coming year and many are expecting that even if the scheme is launched they are going to be eclipsed by the state of the economy. The head of retail banking at KPMG has recently commented, “A reduction in global bank lending is only going to be partially offset by this measure.”