Agents dispute credit squeeze

A property agent has spoken out against current media reports about restrictions on lending.

The "credit squeeze" has been widely reported in the media, and some commentators think that the current economic downturn will make it harder for pub buyers to finance ventures.

Simon Kershaw, of GA-Select, said: "If we are to believe the doom mongers then we are all in for a bumpy ride over the next 12 months. But we must remember that banks and other financial organisations have one thing in common - they have to lend money, it's what they do."

He also pointed out that licensed property is never financed by sub-prime lenders, who loan money to people who do not qualify for the best market rates because of poor credit history.

He added: "It has always been the case that a good business with accurate accounts and good profitability will hold it's value and be eminently fundable. In fact, the competition to fund these pubs may result in some great funding packages being offered."

However, he also said that there would be more pressure on vendors to supply detailed, accurate information and have realistic expectations of their business's value.

Graham Allman, also of GA-Select, said: "There's been a lot off fuss in the press. I don't think it's even a buyers' market, which is being reported in most publications. It's a deal market - if the deal's right in the first place then it's good for both sides."