Credit Squeeze becomes Credit Stretch

[1/7/2008]

As the big banks continue to squeeze small business credit, trade association bank BHF Finance has, in an unprecedented move made major changes to its new and used vehicle loans, to loosen the straightjacket of the credit crunch.

In a series of major changes BHF Finance has brought relief to independents with:

• A straight cut of almost 2% from it’s normal APR’s on all new and used vehicle loans
• A reduction in the deposit required on all vehicles to 10% from the previous 20%
• The introduction of a cash back to unlock cash from the trade-in value of a vehicle

The key aim in making these moves is to persuade members of the association to make BHF Finance their preferred choice of finance for their vehicle investment.

The rate reduction for vehicles will be a three month special offer until the 30th September 2008. Unusually it applies to both new and used vehicles.

The cash back facility will be available to vehicle buyers who have a trade-in and apply for a BHF Finance loan to help with the purchase. BHF Finance will release up to 80% of the trade-in value in the form of a cash back payment to release the equity.

BHF Finance is well aware of the belt tightening that high street banks are imposing on small business and is also well aware of the need to remain competitive in a saturated marketplace.

Newly appointed Joint managing director, John Collins commented: “With the new vehicle registrations due in September, the timing of this special offer is perfect to demonstrate to members that we are not just their trusted source of finance, but that we do our best to compete with heavily sponsored competitors and manufacturer offers and to help their credit stretch to meet their needs.”

For further information contact the BHF Finance team on 0121 446 6688.

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"It doesn't hurt to ask" says BHF as OFT cleared to investigate bank charges

[30/4/2008]

A High Court ruling on 24th April has given the Office of Fair Trading the authority to press ahead with it’s investigation into unfair bank charges. This was first launched in March 2007 following a consumer backlash which saw thousands of Britons reclaiming fees going back up to six years. In the first half of 2007, banks refunded more than £400 million. Banks are thought to make £2 billion to £3.5 billion per year on fees imposed when customers go into unauthorized overdraft, or where a cheque bounces. Campaigners claim that the actual cost to the bank in these circumstances is £2.50 whereas banks levy penalties as high as £39.

The test case is expected to take years to resolve. Thursday’s decision follows a hearing in January at which lawyers for RBS, Abbey, Barclays, Lloyds, HSBC, HBOS, Clydesdale Bank and building society Nationwide disputed whether the banks could be sued under the 1999 Unfair Terms in Consumer Contracts Regulations.

John Collins, BHF Group Financial Director comments: “I would advise any BHF member who believes he or she has suffered unauthorised bank charges to ask for their money back. You can claim up to six years worth of charges. There are websites available to guide you through this process e.g. (www.thisismoney.co.uk).” BHF Finance has always prided itself on the transparency of its loan agreement charges, with no administration fees and no early settlement charges. As the only Trade Association owned bank, it relies upon the support of its members. It is not driven by maximizing shareholder value at the expense of members

For further information contact the BHF Finance team on 0121 446 6688.

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BHF Finance reduces lending rates

[14/4/2008]

Despite the quarter point interest rate cut by the Bank of England last Thursday, the rates at which banks lend to each other, i.e. 3 month LIBOR (London Interbank Offer Rate) went up on Friday which suggests that the move has done little to encourage interbank lending. If this is the case then the move will do little to benefit borrowers either.

As the BHF Finance company is not dependent upon interbank funds, as it benefits from funds deposited by members, it is able to pass on the full impact of the rate cut to it’s members. Consequently, all APR lending rates have been reduced by 0.25% with immediate effect whether for new or used vehicles, computers or equipment, working capital or personal loans. 

For further information contact the BHF Finance team on 0121 446 6688.

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Credit squeeze pressure: Banks tighten up on lending

[4/4/2008]

After speaking to several reliable sources recently, it is obvious that the major high street banks have tempered their appetite for lending. This is especially obvious in the asset based finance area where one or two household names have declared that they are not offering help to new applicants or have simply reduced the size of their dedicated team as the credit squeeze has depleted their interest in low margin business. Such is the premium price being paid by banks for cash at present that they cannot make ends meet on asset based finance.

As we know, BHF Finance does not rely on other banks for funds but on it’s member deposits which remain high. Consequently, neither it’s appetite nor it’s capacity for lending has diminished as a result of the lack of funds in banking circles. It remains committed to making funds available at all times to members to assist them with both business and personal needs especially in the asset based lending arena.

If you have been turned away by your bank recently in your efforts to secure funding for whatever purpose, speak to one of the BHF Finance team who will only be too happy to help.

For further information contact the BHF Finance team on 0121 446 6688.

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The waiting is over for new members

[17/10/2007]

BHF Finance has abolished the six month waiting rule for new members, which until now has precluded them from using the company’s finance services during this period. New members will now be able to deposit savings or apply for a loan of a business or personal nature from their trade association owned bank upon joining BHF Group. As a result, all new subscribers will now have access to all group services from day one.

Group Financial Director John Collins commented: “BHF Finance raises its capital from members’ deposits. The finance company has always strived to make cash available to members at competitive rates and continues to do so. We need to ensure that members always come to us for a quote at least when they need extra cash, whether they are a longstanding member or new to the federation. For this reason the six month waiting period has been consigned to the dustbin with immediate effect.”

For further information contact the BHF Finance team on 0121 446 6688.

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Rate freeze offer stays frozen

[5/10/2007]

With the decision of the Board of England’s Monetary Policy Committee on the 4th October to keep interest rates on hold and with a degree of uncertainty surrounding the next move, BHF Finance is offering further comfort to its members by maintaining its special rate freeze offer on new vehicle loans which has now been extended until 1st November 2007. BHF Finance is keeping costs low by offering members a competitive 8.6% typical APR based on a 12 month loan.

As the only trade association-owned bank in the UK, BHF Finance is proud to promote its points of difference to high street banks and other lenders, having no set up fees, no early repayment penalties, no hidden extras, no hard sell on loan insurances and the “guarantee of a real person to speak to on the phone every time.” Members will find that dealing with BHF Finance is trouble free.

For further information retailers should contact the BHF Finance team on 0121 446 6688.

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Rate freeze on new vehicle loans as base rate heats up

[16/8/2007]

As interest rates have continued to rise in recent months, BHF Finance have decided to freeze their rates on all new vehicle loans until 1st October. The special offer for BHF Group members comes at just the right time for the new vehicle registrations, due out on 1st September. To keep costs low BHF Finance are offering members a cool 8.6% typical APR based on a 12 month loan, and as all BHF Finance loans are fixed for the entire term of an agreement they insulate borrowers against the further rate rises that many expect.

As the only trade association-owned bank in the UK BHF Finance makes a point of its differences to high street banks and other lenders having no set up fees, no early repayment penalties, no hidden extras, no hard sell on loan insurances and the “guarantee of a real person to speak to on the phone every time.”

BHF Finance also provides finance for other items such as, computers and equipment, fixtures and fittings, showroom refurbishments and much more. A full range of financial services are offered to Group members, designed to suit the individual requirements of independent merchants and dealers such as, business loans, personal loans, working capital loans, deposit accounts and cash mini ISA’s.

For further information retailers should contact the BHF Finance team on 0121 446 6688.

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More than Rock solid

[14/9/2007]

Businesses are being shaken by rising interest rates as movements in financial markets force even heavyweight lenders to borrow money at higher and higher rates of interest. This is making business finance more and more expensive and less and less certain. BHF Finance is reminding members that as the company is entirely self-financing not only are its lending rates frozen at already competitive rates, its rates are fixed once an agreement is signed.

Director John Collins commented: "Just because Big Finance is suffering a credit crunch doesn't mean that businesses have to delay purchases, such as vehicles or fittings, that they need today. Neither does it mean that they have to pay over the odds if they have to buy now. BHF Finance is not subject to the climate in the money markets for its cash and it is not driven to making excessive profits from its customers as it is the only wholly trade association-owned bank in the country."

For further information retailers should contact the BHF Finance team on 0121 446 6688.

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