The Sunday Times today reported that “doorstep lender Cattles had been warned of a possible credit downgrade by ratings agency Fitch over concerns about it’s funding position”
The group is in talks with it’s lenders about renogiating a £500m credit line that is due to expire next summer and is also trying to obtain a banking licence from the FSA which would allow it to start taking deposite from customers.
Perhaps these two factors would explain why subsidiary Cattles Invoice Finance is up for sale and we would re-iterate the comment that we made a couple of months ago that until the future has become clearer we would not recommend Cattles Invoice Finance to any of our factoring clients
The current economic climate will have a serious impact on the invoice finance sector. All factors will become more cautious, seek greater security and increase charges. Having said that the majority still have an appetite for writing business. It will be important to check the financial strength of some of the smaller non Bank owned factors.
Following the demise of Wageroller and Fairfax it will not be long before we see another failure. The Banks that fund smaller will be looking closely at their security and may impose certain restrictions on how their customers run their businesses.failures this year.
is there a bid on the way for Ultimate. One shareholder now controls 20% of the company
I understand that this is just a strategic investment and the investor isn’t interested in acquiring control