As Northern Rock customers queued to withdraw savings today, and shares fell 32% following revelations about the bank’s financing problems, BHF Finance sent out a statement reminding the industry that it is not subject to the vagaries of the money markets.
“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,” the statement said. “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.”
BHF Finance 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 isn’t subject to the climate in the money markets for its cash and it isn’t driven to making excessive profits from its customers as it’s the only wholly trade association-owned bank in the country.”